Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 5, Problem 11P
To determine
Prepare a cost of production summary for the month March.
Expert Solution & Answer
Explanation of Solution
Prepare a cost of production summary for the month March.
G Inc. | |||
Cost of production summary | |||
Forming department | |||
For the month ended March 31 | |||
Particulars | Amount($) | Amount($) | Amount($) |
Cost of work in process, beginning of month | |||
Cost in shaping | $8,000(1) | ||
Cost in forming: | |||
Materials | $500 (3) | ||
Labor | 1,000 (3) | ||
Factory | 750 (3) | $2,250 (2) | $10,250 |
Cost of goods received from shaping during the month | 36,000 | ||
Cost of production for month: | |||
Materials | $4,000 | ||
Labor | 8,000 | ||
Factory overhead | 6,000 | 18,000 | |
Total costs accounted for | $64,250 | ||
Unit output for month: | |||
Finished and transferred to finished goods | 8,000 | ||
Equivalent units of work-in process (3,000 units, 1/3 complete) | 1,000 | ||
Total equivalent production | 9,000 | ||
Unit cost for month: | |||
Materials | $0.50 | ||
Labor | 1 | ||
Factory overhead | 0.75 | ||
Total | $2.25 | ||
Inventory cost: | |||
Cost of goods finished and transferred to finished goods: | |||
Cost in shaping | $32,000 | ||
Cost in forming | 18,000 | ||
Total | $50,000 | ||
cost of work-in process, end of month: | |||
Cost in shaping | $12,000 | ||
Cost in forming: | |||
Materials | $500 | ||
Labor | 1,000 | ||
Factory overhead | 750 | 2,250 | $14,250 |
Total production costs accounted for | $64,250 |
Table (1)
Working note:
- 1) Calculate the cost for shaping:
- 2) Calculate the cost in beginning work-in process:
- 3) Calculation of ratio:
Particulars | A | B | D | ||
Material cost in beginning work-in process | $4,000 | $18,000 | 22.22% | $2,250 | $500 |
Labor cost in beginning work-in process | $8,000 | $18,000 | 44.44% | $2,250 | 1,000 |
Factory overhead cost in beginning work in process | $6,000 | $18,000 | 33.33% | $2,250 | $750 |
Total | $18,000 | 100% | $2,250 |
Table (2)
- 4) Calculate the ending work-in process:
Particulars | Units |
Beginning work in process | 2,000 |
Received from shipping | 9,000 |
Total | 11,000 |
Units finished | 8,000 |
Ending work in process | 3,000 |
Table (3)
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Chapter 5 Solutions
Principles of Cost Accounting
Ch. 5 - What are the two basic systems of cost accounting,...Ch. 5 - Following is a list of manufactured products. For...Ch. 5 - Give three examples of industries and companies...Ch. 5 - What is the primary difference between the two...Ch. 5 - What is the difference between the term unit cost...Ch. 5 - How do the two cost accounting systems differ in...Ch. 5 - What is the primary objective in accumulating...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What would be the effect on the unit cost of...
Ch. 5 - What information is reflected on a production...Ch. 5 - What are the four main sections of a cost of...Ch. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - In determining the costs transferred to a third...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Compute the equivalent production (unit output)...Ch. 5 - During the month, a company with no...Ch. 5 - Comacho Chemical Co. recorded costs for the month...Ch. 5 - Norwood Co. had 200 units in work in process at...Ch. 5 - Using the following data, determine which figures...Ch. 5 - The records of Burris Inc. reflect the following...Ch. 5 - The records of Stone Inc. reflect the following...Ch. 5 - Argo Manufacturing Co. had 500 units, three-fifths...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Geneva Products Co. produces a latex paint and...Ch. 5 - Dublin Brewing Co. uses the process cost system....Ch. 5 - Kokomo Kayak Inc. uses the process cost system....Ch. 5 - Prob. 4PCh. 5 - Sifting, the second department in a...Ch. 5 - Forming, the second department in a...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Prob. 11PCh. 5 - Petrini Products Co. has two departments: Mixing...Ch. 5 - Tanaka Manufacturing Co. uses the process cost...Ch. 5 - Syracuse Beverages Inc. has three plants that make...
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