Question

Case on Process Costing) (submit as handwritten)
Examples on Process Costing ) FIFO method
The mixing department in COBE Company is using Process costing system, the following information related to department:
Production:
Units in Process, August 1, 60% completion 20,000
Units completed and transferred out         40,000
Units in process, August 31, 35% completion    10,000
Costs:
Work- in process, Aug 1:
Direct Mat.                    $ 30,000
Conversion Costs               3,000
Total WIP                   33,000
Current costs:
Direct Mat.    50,000
Conversion Costs               4,000
Total current costs 54,000
(Note: Direct Mat. Is added at the beginning of production)
Using First in First out (FIFO) method:
Prepare physical flow schedule.
Calculate the Equivalent Units
Compute the Unit Cost
Calculate the Cost of ending work in process:, and Cost of goods completed.

3.Unit direct material cost=
Unit conversion cost=

total Unit cost=

4. Costs accounted for:
   Units transferred out:
Units, Beg. WIP:
   From prior period           
   From current period
Units Started and completed
End. WIP:
DM
Conv. Cost                 
Total costs accounted for      

Answer 1

COBE Company Cost of Production Report (FIFO Method)- Mixing Department For the Month Ended August Unit Information 1 Physical flow of units Units charged to production Inventory in process, Aug 1 Received from materials storeroom Total Units accounted for Units to be assigned cost: Physical Units 20,000 30,000 50,000 Whole units 20,000 20,000 40,000 10,000 50,000 Equivalent Units % Direct % Completed Materials Completed 40% 100% 20,000 100% Conversion Cost 8,000 20,000 Inventory in process, Aug 1 Started and completed during the month Units completed and transferred out Inventory in process, Aug 31 Total units to be assigned costs 100% 35% 10,000 30,000 3,500 31,500 2 Cost Information 3 Cost per equivalent unit Conversion Total cost for Augustin Mixing department Total equivalent units Cost per equivalent unit Direct Materials $50,000 30,000 $1.6667 $4,000 31,500 $0.1270 Cost assigned to production Conversion Total Inventory in process, August 1 Costs incurred in August month Total costs accounted for by the Mixing Department Direct Materials $30,000 $50,000 $80,000 $3,000 $4,000 $7,000 $33,000 $54,000 $87,000 Cost allocated to completed and partially completed units: 4 Total Units transferred out: Units Beg WIP From prior period From current period (8,000 units * $0.127) Cost of completed Beg WIP Units started and completed (20,000 units * $1.7937) Cost of units completed and transferred out End WIP Direct Material (10,000 units * $1.6667) Conversion cost (3,500 units * $0.127) Total cost accounted for $33,000 $1,016 $34,016 $35,873 $69,889 $16,667 $444 $17,111 $87,000