Topics

Pamoja Company uses the weighted-average method in its process costing system. It has two departments that process items: Department A and Department B. In Department A at the beginning of May direct materials were 80% complete and conversion costs were 40% complete with respect to the 5,000 units in work in process on May 1.

On May 31st direct materials are 70% completed and conversion costs are 60% completed with respect to the 8,000 units in work in process. During May, 12,000 units were completed and transferred to the Department B. An analysis of the costs relating to work in process on May 1 and to production activity for May follows:

Required
Prepare a production cost worksheet with supporting schedules using weighted-average method of process costing. How much is the cost of units in ending work in process and the cost of units transferred to Department B in May?

Waridi Furnitures Co. Ltd produces chairs. It has two departments that process products: cutting and assembly. Direct materials are all added in cutting department; and none in assembly department. During June 2020, beginning work-in process in the assembly department was 60 percent complete as to conversion. In the Assembly Department beginning inventories included shs 7,000 for transferred-in costs and shs 10,000 for conversion costs. Ending inventory was 30 percent complete. Additional information about the two departments follows:

Required:
Prepare a production cost worksheet using first in first out (FIFO) costing for the assembly department.

The General Factory produces boots. It has two departments that process all the items. During March, the beginning work-in-process in the tanning department was 60 percent complete as to conversion and 100 percent complete as to direct materials. The beginning inventory included shs 6,400 for conversion costs and shs 13,300 for materials. Ending work-in-process inventory in the tanning department was 40 percent complete as to conversion and 100 percent complete as to direct materials.
Beginning work-in-process in the finishing department was 40 percent complete as to conversion and 40 percent complete as to direct materials. Beginning inventories included shs 8,100 for transferred-in costs shs 3,000 for direct materials and shs 6,000 for conversion costs. Ending inventory was 25 percent complete as to conversion and 50 percent complete as to direct materials.

Additional information about the two departments follows:

Required:

Prepare a production cost worksheet using first in first out costing for the tanning department

Summer Company produces bikes. It has two departments that process items: Assembly and Testing. The Information for Assembly Department for September includes:

Beginning work-in-process is completed 70% as to direct materials and 50% as to conversion costs. Ending work-in-process is completed 80% as to direct materials and 60% as to conversion costs.
Required:
Prepare a production cost worksheet with supporting schedules using the first in first out method (FIFO) of process costing

Respond Need help?

A company manufactures two products, Product A manufactured in Process Y and Product B manufactured in Process Z. The following information is available for a period:

Note 1:
In Process Y the normal amount of waste material is 5% of the weight of raw materials input.
Note 2:
In Process Z the closing work-in-progress is 100% complete as to raw materials and 60% complete as to conversion costs.
Required:

1. For Process Y, calculate the:
   1. Cost per kg of the expected production of Product A; and
   2. Total cost of the finished output of Product A.
2. For Process Z, calculate the equivalent units of production of Product B in respect of conversion costs.

1. Give an example of a business where process costing may be applied and describe the features of this type of business which make the costing method appropriate.
2. A company manufactures a product by means of two successive processes, Process 1 and Process 2. The following relates to the period just ended:
   

   Process 2

   	Units	Cost (shs)
   Opening work-in-progress	Nil	Nil
   Transfer from Process	1 2,160	22,032
   Material added		5,295
   Conversion costs		8,136
   Transfer to finished goods warehouse	11,950
   Closing work-in-progress	210

   The work-in-progress at the end of the period was 80% complete with respect to material added and 40% complete with respect to conversion costs in Process 2.
   Required:
   Calculate for the period the:

   1. Production cost per equivalent unit of the product
   2. Value of the transfer to the finished goods warehouse
   3. Value of the closing work-in-progress in Process 2.

600 tonnes of raw material, costing shs 430,032 were input to a process in a period. Conversion costs totalled shs 119,328. Losses, in the form of reject product, are normally 12% of input. Reject product is sold for shs 260.00 per tonne. 521 tonnes of finished product passed inspection in the period. The remaining output was sold as reject product. There was no work-in-progress either at the beginning or the end of the period.
Required:
For the period:

1. Calculate the cost per unit of normal output
2. Prepare the process account, including any abnormal losses/gains