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Process Costing in Class Practice Questions 1

The cost of production report summarizes the costs incurred and units completed, transferred, and in process for a department during a period. The report includes the costs transferred in from the preceding department, costs added in the current department broken down by materials, labor, and overhead, units received, transferred out, and still in process along with their completion percentages, and calculates any ending work in process.

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453 views

Process Costing in Class Practice Questions 1

The cost of production report summarizes the costs incurred and units completed, transferred, and in process for a department during a period. The report includes the costs transferred in from the preceding department, costs added in the current department broken down by materials, labor, and overhead, units received, transferred out, and still in process along with their completion percentages, and calculates any ending work in process.

Uploaded by

Bisma Shahab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

Cost of Production Report:


A company's Department 2 costs for June were:

Cost from Department 1 $16320


Cost added in Department 2:
Materials 43,415
Labor 56,100
Factory overhead (FOH) 58,575

The quantity schedule shows 12,000 units were received during the month
from Department 1; 7,000 units were transferred to finished goods; and
5,000 units in process at the end of June were 50% complete as to materials
cost and 25% complete as to conversion cost.

Required: Prepare Cost of production report.

2. Cost of Production Report:


Information given to Goods in process in the Z DEPARTMENT of Aramco
company.

Material cost 75,000

Labor cost 53,700

Overhead cost 35,800

Production information:

Units put into process during the month-----------------------20,000

Units completed and transferred to Holder department-------------16,000

Units in process August 31(75% complete as to Material and 60%

complete as to labor and overhead)--------------4000

Instruction: Prepare Cost of Production Report for the month of August


3. Cost of Production Report:
Brooks Inc. uses process costing. The costs for Department 2 for April were:

Cost from preceding department $20,000


Cost added by department:
Materials $21,816
Labor 7,776
Factory overhead (FOH) 4,104 33,696
--------
The following information was obtained from the department's quantity
schedule:
Units received 5,000
Units transferred out 4,000
Units still in process 1,000

The degree of completion of the work in process as to costs originating in


department 2 was: 50% of units were 40% complete; 20% were 30%
complete; and the balance were 20% complete.

Required: The cost of production report for Department 2 for April.

4. Equivalent Units of Production:


During April, 20,000 units were transferred in from department A at a cost
of $39,000. Materials cost of $6,500 and conversion cost of $9,000 were
added in department B. On April 30, department B had 5,000 units of work
in process 60% complete as to conversion as costs. Materials are added in
the beginning of the process in department B.

Required:

1. Equivalent units of production calculation.


2. The cost per equivalent unit for conversion costs.
5. For December, the Production Control Department of Carola Chemical,
Inc., reported the following production data for Department 2:

Transferred in from Department 1


55,000 litres

Transferred out to Department 3


39,500 litres

In process at the end of December (with 1/2 labour and factory overhead)
10,500 litres

All materials were put into process in Department 1. The cost department
collected following figures for department 2:

Unit cost for units transferred in from department 1 Rs.1.80

Labour cost in department 2 Rs.27,520

Applied factory overhead Rs.15480

Required: A cost of production report for department 2 for December.

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