Explain step three and step four for the production cost report?
Explain step three and step four for the production cost report?
Homework Answers
Definition of production cost report.
Production cost report is a summary report of cost incurred for
the production of products, which is used by the management to
analyse the activities of each department.
Production cost report represents the quantities of products
produced and cost incurred related to each department.
The steps involved in production cost reports preparation are as follows:
- Computation of physical unit flow.
- Analysis of equivalent unit of production.
- Computation of per unit production cost.
- Preparation of cost reconciliation schedule
Explanation of step 3 and step 4
Step 3 : computation of per unit production cost:
- Unit production cost are termed in equalent unit of production
- Cost incurred during the production of entire stock is divided by a number of units produced to identify per unit cost
- Manufacturing cost of each unit includes the total of unit material cost + unit conversion cost
Steps 4: Preparation of cost reconciliation schedule
- At last the company has to prepare a cost reconciliation schedule for the purpose of
- calculation of units transferred from each unit.
- calculation of work in progress stock.
- For allocation of cost to units completed and transferred, (total manufacturing cost of each unit is used).
- Reconciliation statement shows the deviation, if any occurred between the total cost incurred and total cost budgeted.
plz solve step by step 2. Cost of Production Report - Normal Loss: For December, the...
plz solve step by step
2. Cost of Production Report - Normal Loss: 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 liters Transferred out to Department 3 39,500liters In process at the end of December (with 1/2 labor and factory overhead) 10,500 liters All materials were put into process in Department 1. The cost department collected following figures for department 2: Unit cost for...
plz solve step by step 1. Cost of Production Report: A company's Department 2 costs for...
plz solve step by step
1. Cost of Production Report: A company's Department 2 costs for June were: $16320 Cost from Department 1 Cost added in Department 2: Materials Labor Factory overhead (FOH) 43,415 56,100 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...
plz solve step by step 6. Cost of Production Report; Normal and Abnormal Loss: The Sterling...
plz solve step by step
6. Cost of Production Report; Normal and Abnormal Loss: The Sterling Company uses process costing. In department B, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. The following information related to department B for January: Dollars $84,000 Units 12,000 9,000 2,000 Received from department A Transferred to finished goods Ending inventory (70% complete) Cost...
plz solve step by step 7. Cost of Production Report; Spoiled Units - Normal and Abnormal:...
plz solve step by step
7. Cost of Production Report; Spoiled Units - Normal and Abnormal: Hettinger Inc., uses process costing system in its two producing departments. In department 2, inspection takes place at the 96% stage of completion, after which materials are added to good units. A spoilage rate of 3% of good output is considered normal. Department 2 records for April shows: Received from department 1 cost Materials Conversion cost (labor + factory overhead) Transferred to finished goods...
plz solve step by step 3. Cost of Production Report: Brooks Inc. uses process costing. The...
plz solve step by step
3. Cost of Production Report: Brooks Inc. uses process costing. The costs for Department 2 for April were: $20,000 Cost from preceding department Cost added by department: Materials Labor Factory overhead (FOH) $21,816 7,776 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:...
Write the four-step process that Mangers are usually follow while making a decision. Explain each step...
Write the four-step process that Mangers are usually follow while making a decision. Explain each step with example. Differentiate between Routine report and Non-Routine report. Explain with example. Explain with example how dynamic analysis is different from static analysis.
the first step in preparing a cost of production report is The first step in preparing...
the first step in preparing a cost of production report
is
The first step in preparing a cost of production report is a. computing the equivalent units of production. O b. determining the cost per equivalent unit. c. allocating costs to units transferred out. d. determining the units to be assigned costs. AN During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The Journal entry to record the...
Cost of Production Report: Weighted average method Blue Ribbon Four Company manufactures flour by a series...
Cost of Production Report: Weighted average method Blue Ribbon Four Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Miling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour The balance in the account Work in Process-Sifting Department was as follows on May 1: Work in Process-Sifting Department (1,500 units, 75% completed) $3,400 The following costs were charged to Work in Process-Sifting Department during May Direct materials...
Step One: Determine the units to be asssigned costs. Step Two: Calculate equivalent units of production...
Step One: Determine the units to be asssigned costs.
Step Two:
Calculate equivalent units of production
Step Three:
Determine the cost per unit
Step Four:
Allocate costs to transferred and partially completed units
200 300 COST OF PRODUCTION REPORT Advanced Technologies Cost of Production Report - Assembly Department For the Month Ended April 30, 2019 Equivalent Units Units whole Units Direct Material conversion Units charged to production: Invents 800 Received from material storerc 3000 Total u 3800 Units to be...
a's four- Pr 1. H production cost report for the Preparation Department for January a ch...
a's four- Pr 1. H production cost report for the Preparation Department for January a ch direct material added at different point in the production process n equivalent units of production computation) be journal entry to record the cost of the shots completed and berred Process Coming 209 requires its own Prepare the jo seat to the Compression Departme dof che Post the jou journal entries to the Work-in-process inventory Preparation Taccount Varch: What is the ending balanse caring production...
plz solve step by step
2. Cost of Production Report - Normal Loss: 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 liters Transferred out to Department 3 39,500liters In process at the end of December (with 1/2 labor and factory overhead) 10,500 liters All materials were put into process in Department 1. The cost department collected following figures for department 2: Unit cost for...
plz solve step by step
1. Cost of Production Report: A company's Department 2 costs for June were: $16320 Cost from Department 1 Cost added in Department 2: Materials Labor Factory overhead (FOH) 43,415 56,100 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...
plz solve step by step
6. Cost of Production Report; Normal and Abnormal Loss: The Sterling Company uses process costing. In department B, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. The following information related to department B for January: Dollars $84,000 Units 12,000 9,000 2,000 Received from department A Transferred to finished goods Ending inventory (70% complete) Cost...
plz solve step by step
7. Cost of Production Report; Spoiled Units - Normal and Abnormal: Hettinger Inc., uses process costing system in its two producing departments. In department 2, inspection takes place at the 96% stage of completion, after which materials are added to good units. A spoilage rate of 3% of good output is considered normal. Department 2 records for April shows: Received from department 1 cost Materials Conversion cost (labor + factory overhead) Transferred to finished goods...
plz solve step by step
3. Cost of Production Report: Brooks Inc. uses process costing. The costs for Department 2 for April were: $20,000 Cost from preceding department Cost added by department: Materials Labor Factory overhead (FOH) $21,816 7,776 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:...
the first step in preparing a cost of production report
is
The first step in preparing a cost of production report is a. computing the equivalent units of production. O b. determining the cost per equivalent unit. c. allocating costs to units transferred out. d. determining the units to be assigned costs. AN During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The Journal entry to record the...
Cost of Production Report: Weighted average method Blue Ribbon Four Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Miling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour The balance in the account Work in Process-Sifting Department was as follows on May 1: Work in Process-Sifting Department (1,500 units, 75% completed) $3,400 The following costs were charged to Work in Process-Sifting Department during May Direct materials...
Step One: Determine the units to be asssigned costs.
Step Two:
Calculate equivalent units of production
Step Three:
Determine the cost per unit
Step Four:
Allocate costs to transferred and partially completed units
200 300 COST OF PRODUCTION REPORT Advanced Technologies Cost of Production Report - Assembly Department For the Month Ended April 30, 2019 Equivalent Units Units whole Units Direct Material conversion Units charged to production: Invents 800 Received from material storerc 3000 Total u 3800 Units to be...
a's four- Pr 1. H production cost report for the Preparation Department for January a ch direct material added at different point in the production process n equivalent units of production computation) be journal entry to record the cost of the shots completed and berred Process Coming 209 requires its own Prepare the jo seat to the Compression Departme dof che Post the jou journal entries to the Work-in-process inventory Preparation Taccount Varch: What is the ending balanse caring production...
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