In: Accounting
21. The Paul Manufacturing Company uses the process cost system
and the average cost method. The following production
data are for the month of April, 2016.
Production Costs |
||
Work in process, beginning of month: |
||
Materials |
$ 4,350 |
|
Labor |
3,200 |
|
Factory overhead |
1,902 |
$ 9,452 |
Costs incurred during month: |
||
Materials |
$43,200 |
|
Labor |
32,304 |
|
Factory overhead |
19,020 |
94,524 |
Total |
$103,976 |
Production Report |
|
Units |
|
In process, beginning of month |
500 |
Finished and transferred during month |
11,900 |
Work in process, end of month |
1,200 |
Stage of completion |
65% |
Prepare a cost of production summary for the month.
Paul Manufacturing Company |
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Cost of work in process, beginning of month: |
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Materials |
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Labor |
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Factory overhead |
$ |
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Cost of production for month: |
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Materials |
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Labor |
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Factory overhead |
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Total costs to be accounted for |
|
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Unit output for month: |
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Finished and transferred to finished goods during month |
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Equivalent units of work in process, end of month |
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( ) |
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Total equivalent production |
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Unit cost for month: |
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Materials [( ] |
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Labor [( ] |
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Factory overhead [( ] |
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Total |
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Inventory costs: |
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Cost of goods finished and transferred to finished goods |
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during month (11,900 × $8.20) |
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Cost of work in process, end of month: |
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Materials ( ) |
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Labor ( ) |
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Factory overhead ( ) |
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Total production costs accounted for |
Paul Manufacturing Company | ||
Cost of Production Summary | ||
For the Month Ended April 30, 2016 | ||
Cost of work in process, beginning of month: | ||
Material | 4350 | |
Labour | 3200 | |
Factory overhead | 1902 | 9452 |
Cost of production for month: | ||
Material | 43200 | |
Labour | 32304 | |
Factory overhead | 19020 | 94524 |
Total costs to be accounted for | 103976 | |
Unit output for month: | ||
Finished and transferred to finished goods during month | 11900 | |
Equivalent units of work in process, end of month | ||
(1200*65%) | 780 | |
Total equivalent production | 12680 | |
Unit cost for month: | ||
Material (47550/12680) | 3.75 | |
Labour (35504/12680) | 2.80 | |
Overhead (20922/12680) | 1.65 | |
Total | 8.20 | |
Inventory Cost | ||
Cost of goods finished and transferred to finished goods (11900*8.20) | 97580 | |
Cost of work in process, end of month: | ||
Material (780*3.75) | 2925 | |
Labour (780*2.8) | 2184 | |
Overhead (780*1.65) | 1287 | 6396 |
Total production costs accounted for | 103976 | |