Question

Process Cost Excel Project

Create a new Excel spreadsheet and name it “Last name_PC”. You project is to create a model for a production cost report using the weighted average method for the month of May.   Following good Excel design techniques, you should have an input area in which you put the department information for the month, and an output area that calculates the production cost report. As always, you should have only formulas or references in your output area. You should also include directions (in a text box) for users.

After completion of the production cost report using the weighted average method, create a new worksheet and label the tab “FIFO”. Create a production cost report using the same information using the FIFO method.

Department Data:

Information about units:
Units in beginning WIP	21,000
Started during the month	240,000
Units in Ending WIP	20,000
Percentage of Completion:
Beginning Inventory:
Direct materials	40%
Conversion	70%
Ending Inventory:
Direct Materials	30%
Conversion	60%
Costs in Beginning WIP:
Direct materials	$210,000
Conversion	$135,000
Costs incurred during the month:
Direct Materials	$1,150,000
Direct Labor	$45,000
Overhead	$605,000

Process Cost Project – non-Excel

Answer questions 1 – 4. Use your Excel spreadsheet to answer questions 5 - 9

	Possible Points	Earned Points
1. Describe how process costing is different than job costing. Identify at least three differences.	3
2. Describe the two basic differences between the weighted average and the FIFO method.	2
3. What is the purpose of a production cost report?	2
4. Describe the concept of an equivalent unit and how to compute equivalent units.	2
5. What is the total cost to be accounted for?	1
6. How much cost will you transfer to the next WIP department using the FIFO method?	2
7. What is the value of materials in beginning inventory at the start of NEXT month for the current process department using weighted average?	2
8. Draw the WIP process T accounts for the two departments, mixing and baking, and show the cost flow from one to the other (do this for both methods – 4 T accounts)	4
9. Do the journal entry transferring costs from one process to the next under both methods.	2
Total	20

Answer 1

Answer 1

                 

Answer 2

              

Answer 3

The main purpose of Production cost report (PCR) are as follows;

• A production cost report (PCR) states the total cost, including raw materials and operating costs, of producing a product.
• Production cost reports (PCRs) are also sometimes called cost of production reports, product cost reports or process cost summaries.

Answer 4

A equivalent unit of creation is a statement of the measure of work done by a maker on units of yield that are somewhat finished toward the finish of a bookkeeping period. Essentially the completely finished units and the halfway finished units are communicated as far as completely finished units.