Cost Accounting: Production for the Mixing Department

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1) The cost of production for the mixing Department for the month of January 2010. (showing clearly the physical Units, Equivalent production Uniot and the cost assignment and cost analysis.

1 (a)
Equivalent

Flow of ProductionPhysical unitsDirect Material Conversion Cost

Work in Process, Beg. Jan. 1, 2010 -

Started during the current period 5,000.00

Total cost to be accopunted for 5,000.00

Completed & Transferred
Out during current period 4,000.00 4,000.00 4,000.00

Work in Process, Ending. Jan. 31, 2010 900.00
900.00 450.00
900x100%; 900x50%

Lost in process 100.00

100x50%; 100x50% - 50.00 50.00

Accounted for 5,000.00

Work doen in current period 4,950.00 4,500.00

1 (b) The cost assignment and cost analysis:Direct Material Conversion Costs
Total Production Cost
Cost added during during Jan.2010 600,000.00 150,000.00 450,000.00 Divided by equvilent units

Work done in current period 4,950.00 4,500.00
Cost per equvilent Unit $30.30 $100.00

Total costs top account for 600,000.00

Assignment of Costs:

Completed and transferred out (4000 Units)521200(4000 x 3030) + (4000 x 100 )

Work in Process, Ending (900 Units)

Direct Materials 27,270.00 (900 x 3030)

Conversion costs 45,000.00 (450 x 100)
Total Work In Process 72,270.00

Lost in process
(100 uniots)
Direct Materials 1,515 (50 x 3030)

Conversion costs 5,000 (50 x 100)

Total lost in process 6,515...
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