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Process Cost Accounting Answers 2

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PROBLEM P5-9

Taguchi Manufacturing Co.

Cost of Production Summary—Mixing

For the Month Ended December 31, 20--

Cost of work in process, beginning of month:

Materials.................................................................................... $ 1,470

Labor.......................................................................................... 650

Factory overhead........................................................................ 565 $ 2,685

Cost of production for month:

Materials.................................................................................... $ 15,000

Labor.......................................................................................... 4,750

Factory overhead........................................................................ 5,240 24,990

Total costs to be accounted for............................................ $ 27,675

Unit output for month:

Finished and transferred to Blending during month.................. 13,000

Equivalent units of work in process, end of month

(2,000 units, one-fourth completed).................................... 500

Total equivalent production................................................ 13,500

Unit cost for month:

Materials ($1,470 + $15,000) ÷ 13,500..................................... $ 1.22

Labor ($650 + $4,750) ÷ 13,500................................................ .40

Factory overhead ($565 + $5,240) ÷ 13,500.............................. .43

Total.................................................................................... $ 2.05

Inventory costs:

Costs of goods finished and transferred to Blending

during month (13,000 × $2.05)........................................... $ 26,650

Cost of work in process, end of month:

Materials (2,000 × 1/4 × $1.22).......................................... $ 610

Labor (2,000 × 1/4 × $0.40)................................................ 200

Factory overhead (2,000 × 1/4 × $0.43)............................. 215 1,025

Total production costs accounted for................................................. $ 27,675

Taguchi Manufacturing Co.

Cost of Production Summary—Blending

For the Month Ended December 31, 20--

Cost of work in process, beginning of month:

Cost in Mixing........................................................................... $ 3,075

Cost in Blending:

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Materials................................................................. $ 240

Labor....................................................................... 905

Factory overhead..................................................... 750 1,895 $ 4,970

Cost of goods received from Mixing during month........................... 26,650

Cost of production for month:

Materials.................................................................................... $ 2,500

Labor ....................................................................................... 8,000

Factory overhead........................................................................ 6,100 16,600

Total costs to be accounted for........................................................... $ 48,220

Unit output for month:

Finished and transferred to Bottling during month.................... 10,000

Finished and on hand................................................................. 500

Equivalent units of work in process, end of month

(4,000 units, four-fifths completed).................................... 3,200

Total equivalent production............................................................... 13,700

Unit cost for month:

Materials ($240 + $2,500) ÷ 13,700.......................................... $ 0.20

Labor ($905 + $8,000) ÷ 13,700................................................ .65

Factory overhead ($750 + $6,100) ÷ 13,700.............................. .50

Total.................................................................................... $ 1.35

Inventory costs:

Costs of goods finished and transferred to Bottling

during month:

Cost in Mixing (10,000 × $2.05).......................... $ 20,500

Cost in Blending (10,000 × 1 .35).......................... 13,500

(10,000 × $3 .40).......................... $ 34,000

Cost of goods finished and on hand:

Cost in Mixing (500 × $2.05)..................................... $ 1,025

Cost in Blending (500 × 1 .35)..................................... 675

(500 × $3 .40)..................................... 1,700

Cost of work in process, end of month:

Cost in Mixing (4,000 × $2.05).......................................... $ 8,200

Cost in Blending:

Materials (4,000 × 4/5 × $0.20)........................ $ 640

Labor (4,000 × 4/5 × $0.65).............................. 2,080

Factory overhead (4,000 × 4/5 × $0.50)........... 1,600 4,320 12,520

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PROBLEM P5-9 Taguchi Manufacturing Co. Cost of Production Summary-Mixing For the Month Ended December 31, 20-- Cost of work in process, beginning of month: Materials $ 1,470 Labor 650 Factory overhead 565 $ 2,685 Cost of production for month: Materials $ 15,000 Labor 4,750 Factory overhead 5,240 24,990 Total costs to be accounted for $ 27,675 Unit output for month: Finished and transferred to Blending during month 13,000 Equivalent units of work in process, end of month (2,000 units, one-fourth completed) 500 Total equivalent production 13,500 Unit cost for month: Materials ($1,470 + $15,000) ? 13,500 $ 1.22 Labor ($650 + $4,750) ? 13,500 .40 Factory overhead ($565 + $5,240) ? 13,500 .43 Total $ 2.05 Inventory costs: Costs of goods finished and transferred to Blending during month (13,000 ? $2.05) $ 26,650 Cost of work in process, end of month: Materials (2,000 ? 1/4 ? $1.22) $ 610 Labor (2,000 ? 1/4 ? $0.40) 200 Factory overhead (2,000 ? 1/4 ? $0.43) 215 1,025 Total production costs accounted for $ 27,675 Taguchi Manufacturing Co. Cost of Production Summary-Blending For the Month Ended December 31, 20-- Cost of work in process, beginning of month: Cost in Mixing $ 3,075 Cost in Blending: Materials $ 240 Labor 905 Factory overhead 750 1,895 $ 4,970 Cost of goods received from Mixing during month 26,650 Cost of production for month: ...
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