Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: Production data: Total Units in process, July 1 (materials 100% complete; conversion 30% complete) 10,000 Units started into Production 170,000 Units complete and transferred to Packaging ? Units in process, July 31 (materials 100% complete; conversion 40% complete) 20,000 Cost data: Work in process inventory, July 1: Materials cost $ 8,500 Conversion cost 4,900 $13,400 Cost added during the month: Materials cost $139,400 Conversion cost 244,200 383,600 Total Cost $397,000 All materials are added at the beginning of work in the Blending Department. Required: Prepare a production report in weighted average method and FIFO method for the Blending Department for July. Use the following 3 steps as a guide in preparing your report: Prepare a quantity schedule and compute the equivalents units Compute the costs per equivalent unit for the month Using the data from (1) and (2) above, prepare a cost reconciliation
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July:
|
Production data: |
|
Total |
|
Units in process, July 1 (materials 100% complete; conversion 30% complete) |
|
10,000 |
|
Units started into Production |
|
170,000 |
|
Units complete and transferred to Packaging |
|
? |
|
Units in process, July 31 (materials 100% complete; conversion 40% complete) |
|
20,000 |
|
Cost data: |
|
|
|
Work in process inventory, July 1: |
|
|
|
Materials cost |
$ 8,500 |
|
|
Conversion cost |
4,900 |
$13,400 |
|
Cost added during the month: |
|
|
|
Materials cost |
$139,400 |
|
|
Conversion cost |
244,200 |
383,600 |
|
Total Cost |
|
$397,000 |
All materials are added at the beginning of work in the Blending Department.
Required:
Prepare a production report in weighted average method and FIFO method for the Blending Department for July. Use the following 3 steps as a guide in preparing your report:
- Prepare a quantity schedule and compute the equivalents units
- Compute the costs per equivalent unit for the month
- Using the data from (1) and (2) above, prepare a cost reconciliation
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
