In: Accounting
Using the Microsoft Excel, kindly prepare a cost production report under the FIFO Method.
Paper Needs Inc, has the following production data for the month of June 20xx.
DEPARTMENT I | DEPARTMENT II | |||||
QUANTITY SCHEDULE | Units | Percentage of completion | Units | Percentage of completion | ||
Work-in process, beginning | 15,000 | 2/3 complete | 9,000 | 1/3 complete | ||
Transferred to next department | 30,000 | ? | ||||
Work-in process, end | 5,000 | 2/5 complete | 8,000 | 7/8 complete | ||
COST ANALYSIS | DEPARTMENT I | DEPARTMENT II | ||||
Work-in process, beginning | ||||||
Cost from preceding department | ||||||
Costs from this department | ||||||
Materials | ₱16,290 | ₱7,992 | ||||
Labor | 6,630 | 3,996 | ||||
Overhead | 2,100 | 2,664 | ||||
Costs added this month | ||||||
Materials | ₱21,720 | ₱61,272 | ||||
Labor | 14,618 | 46,620 | ||||
Overhead | 5,068 | 31,080 |
In Department I, all materials are added at the start of the process, while labor and overhead are applied evenly throughout the process.
In Department II, 50% of materials are added at the start of the process and the balance is added when the process is ¾ completed. Conversion costs are applied uniformly to the process.
Statement of equivalent production of Dept- 1 | ||||||||||||
Particulars | Units | Particulars | Units | Material | Labor | Overhead | ||||||
% | Units | % | Units | % | Units | |||||||
Opening WIP | 15000 | Transferred to D-2 | ||||||||||
Current Introduction | 20000 | From O/p WIP | 15000 | - | - | 1/3' | 5000 | 1/3' | 5000 | |||
From C.I | 15000 | 100% | 15000 | 100% | 15000 | 100% | 15000 | |||||
30000 | ||||||||||||
Closing WIP | 5000 | 100% | 5000 | 2/5' | 2000 | 2/5' | 2000 | |||||
35000 | 35000 | 20000 | 22000 | 22000 |
Statement of cost per equivalent units of Dept-1 | ||||
Element of cost | Cost | Units | Cost per eq. units | |
Material | $ 21,720.00 | 20000 | $ 1.09 | |
Labor | $ 14,618.00 | 22000 | $ 0.66 | |
OH | $ 5,068.00 | 22000 | $ 0.23 | |
$ 1.98 |
Statement of evaluation of Dept-1 | ||||
Cost of Closing WIP | ||||
Element of cost | Units | Cost/unit | Cost | |
Material | 5000 | $ 1.09 | $ 5,430.00 | |
Labour | 2000 | $ 0.66 | $ 1,328.91 | |
OH | 2000 | $ 0.23 | $ 460.73 | |
$ 7,219.64 | ||||
Cost of Goods Transferred | ||||
Cost of Finished Goods( from current input) | (15000 units*1.981) | $ 29,712.27 | ||
Cost of Opening WIP (incomplete) | (16,920+6,630+2,100) | $ 24,920.00 | ||
Cost of completing opening wip: | ||||
Element of cost | Units | Cost/unit | Cost | |
Material | - | - | - | |
Labour | 5000 | $ 0.66 | $ 3,322.27 | |
OH | 5000 | $ 0.23 | $ 1,151.82 | $ 4,474.09 |
$ 59,106.36 | ||||
Statement of equivalent production of Dept- 2 | ||||||||||||
Particulars | Units | Particulars | Units | Material | Labor | overhead | ||||||
% | Units | % | Units | % | Units | |||||||
Opening WIP | 9000 | Finished Goods | ||||||||||
Transferred from | 30000 | From O/p WIP | 9000 | 50% | 4500 | 2/3' | 6000 | 2/3' | 6000 | |||
Dept-1 | From Transfer | 22000 | 100% | 22000 | 100% | 22000 | 100% | 22000 | ||||
Closing WIP | 8000 | 100% | 8000 | 7/8' | 7000 | 7/8' | 7000 | |||||
39000 | 39000 | 34500 | 35000 | 35000 |
Statement of cost per equivalent units of Dept-2 | ||||
Element of cost | Cost | Units | Cost per eq. units | |
Material | $ 61,272.00 | 34500 | $ 1.78 | |
Labor | $ 46,620.00 | 35000 | $ 1.33 | |
OH | $ 31,080.00 | 35000 | $ 0.89 | |
$ 4.00 |
Statement of evaluation of Dept-2 | ||||
Cost of Closing WIP | ||||
Element of cost | Units | Cost/unit | Cost | |
Material | 8000 | $ 1.78 | $ 14,208.00 | |
Labour | 7000 | $ 1.33 | $ 9,324.00 | |
OH | 7000 | $ 0.89 | $ 6,216.00 | |
$ 29,748.00 | ||||
Cost of Goods Transferred | ||||
Cost of Finished Goods( from current input) | (22000 units * $ 4.00) | $ 87,912.00 | ||
Cost of Opening WIP (incomplete) | ($ 7,992+ $ 3,996+ $ 2,664) | $ 14,652.00 | ||
Cost of completing opening WIP: | ||||
Element of cost | Units | Cost/unit | Cost | |
Material | 4500 | $ 1.78 | $ 7,992.00 | |
Labor | 6000 | $ 1.33 | $ 7,992.00 | |
OH | 6000 | $ 0.89 | $ 5,328.00 | $ 21,312.00 |
$ 123,876.00 |