Question

Dentex Plastics Corporation produces non-breakable container for cosmetics, using three departments; Mixing, Molding and Finishing.  On July 1, the work in process inventory in the Molding Department was 1,000 units, 50% complete as to materials and conversion costs, while the July 31 work in process inventory consisted of 2,800 units, 75% complete as to materials and conversion costs.  During, July, the Finishing Department received 20,000 units from the Molding Department.    Relevant cost data are as follows:

 

Work   in process July 1	Rs. 6,000
Cost added during July
Materials	48,744
Labour	59,112
Factory   overhead	52,416

 

Required:

Using FIFO costing method and weighted average method, prepare the cost of production report for the Molding Department for July.

Answer 1

FIFO
Beginning	1000
Goods inputted	21800
Total accounted for	22800
Completed and transferred	20000
Ending	2800
Total accounted for	22800
FIFO
	Material	Conversio
Beginning WIP	1000	1000
% already complete	50%	50%
% to be completed	50%	50%
Equivalent beginning units	500	500
Units started and completed during the month	19000	19000
Ending WIP	2800	2800
% to be completed	75%	75%
Equivalent ending units	2100	2100
Total equivalent units	21600	21600
Total cost of equivalent units
Materials	48744
Labor	59112
Factory overhead	52416
Total costs	160272
Equivalent units	21600
Cost per equivalent unit	7.42
Cost of units completed and transferred out
Cost of equivalent unit	144690	=19500*7.42
Beginning WIP costs	6000
Total costs	150690
Cost of ending WIP	15582	=2100*7.42

Weighted average
Units completed and trasferred out	20000	20000
Ending WIP	2800	2800
% to be completed	75%	75%
Equivalent ending units	2100	2100
Total equivalent units	22100	22100
Cost per equivalent unit
Materials	48744
Labor	59112
Factory overhead	52416
Cost of current month	160272
Beginning costs	6000
Total costs accounted for	166272
Equivalent units	22100
Cost per equivalent unit	7.52362
Cost of units completed and transferred out
Cost of equivalent unit	150472.4	=20000*7.52362
Cost of ending WIP	15799.6	=2100*7.52362