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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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Total production costs accounted for................................................. $ 48,220
Taguchi Manufacturing Co.
Cost of Production Summary—Bottling
For the Month Ended December 31, 20--
Cost of work in process, beginning of month:
Cost in Mixing........................................................................... $ 6,150
Cost in Blending........................................................................ 3,660
$ 9,810
Cost in Bottling:
Materials........................................................................ $ 900
Labor ........................................................................... 3,100
Factory overhead............................................................ 3,080 7,080 $ 16,890
Cost of goods received from Blending.............................................. 34,000
Cost of production for month:
Materials.................................................................................... $ 1,500
Labor ....................................................................................... 6,500
Factory overhead........................................................................ 7,000 15,000
Total costs to be accounted for........................................................... $ 65,890
Unit output for month:
Finished and transferred to finished goods................................ 11,000
Equivalent units of work in process, end of month
(2,000 units, one-half completed)....................................... 1,000
Total equivalent production................................................ 12,000
Unit cost for month:
Cost from preceding department:*
Beginning inventory (3,000)...................... $ 9,810
Goods received during month (10,000)...................... 34,000
Average unit cost for goods (13,000)...................... $ 43,810 $ 3.37
Cost in Bottling:
Materials ($900 + $1,500) ÷ 12,000................................... $ 0.20
Labor ($3,100 + $6,500) ÷ 12,000...................................... .80
Factory overhead ($3,080 + $7,000) ÷12,000..................... .84
Total.................................................................................... $ 1.84
Inventory costs:
Costs of goods finished and transferred:
Cost in Mixing and Blending (11,000 × $3.37)........... $ 37,070
Cost in Bottling (11,000 × 1 .84)........... 20,240
(11,000 × $5 .21)........... $ 57,310

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PROBLEM P5-9Taguchi Manufacturing Co.Cost of Production Summary-MixingFor the Month Ended December 31, 20--Cost of work in process, beginning of month: Materials$1,470 Labor650 Factory overhead565$2,685Cost of production for month: Materials$15,000 Labor4,750 Factory overhead5,24024,990 Total costs to be accounted for$27,675Unit output for month: Finished and transferred to Blending during month13,000 Equivalent units of work in process, end of month (2,000 units, one-fourth completed)500 Total equivalent production13,500Unit 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$2.05Inventory 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)2151,025Total production costs accounted for$27,675Taguchi Manufacturing Co.Cost of Production Summary-BlendingFor the Month Ended December 31, 20--Cost of work in process, beginning of month: Cost in Mixing$3,075 Cost in Blending: Materials$240 Labor905 Factory overhead7501,895$4,970Cost of goods received from Mixing during month26,650Cost of production for month: ...
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