4-2 Job-order and processing costing are similar in the following ways: 1.Job-order costing and process costing have the same basic purposes—to assign View 2_Exercises_Job_order_costing_with_solution.pdf from AA 1Ágnes Siklósi PhD Managerial Accounting Job-Order Costing Seminar 2 True/False Questions 1. Cost of Production Report The following information was obtained from the department’s quantity schedule: Equivalent units of production calculation. Of the 60,000 units received, 50,000 were transferred out; 9,000 units were in process at the end of the month (all materials, 2/3 converted); 1,000 lost units were 1/2 complete as to materials and conversion costs. Also see formula of gross margin ratio method with financial analysis, balance sheet and income statement analysis tutorials for free download on Accounting4Management.com. $56,500. Journal Entry #3 cites administrative salaries at $20,000.00, but in the Solutions section, administrative salaries are posted in the journal at $200,000.00. For the Month of December. For the Month of June, 19___, Materials = 7,000 + (5,000 × 50%) = 9,500 units, Labor and factory overhead = 7,000 + (5,000 × 25%) = 8,250 units. What is the treatment of normal and abnormal loss in process costing system? Cost of Production Report 19____, (Cost from preceding departments / Units from preceding departments – Lost units) – Unit cost from preceding department, (5,000 × 1.80) = $9,000 / 50,000 = $0.18. Required: Prepare Cost of production report. Brooks Inc. uses process costing. Assembly department: 1,000 units, 2/5 complete as to direct labor. Of Carola Chemical Inc. Prepare the format of cost of production report. In department B, conversion costs are incurred uniformly throughout the process. Copyright 2012 - 2020. Required: The cost of production report for Department 2 for April. How the timing of normal and abnormal loss is considered in a cost of production report? Cost of production report ;normal spoilage .malamud company uses process costing .all material are added at the beginning of the process .the product is inspected when it is 80% converted ,and spoilage is identified only at that point. You are the production supervisor of the Inspection Department of a lumber processing plant. Calculate equivalent units of production. For the month of April, 19|____, Materials, labor, and factory overhead = 4,000 + (1,000 32%) = 4,320 units. The entire loss is considered abnormal and is to be charged to factory overhead. A spoilage rate of 3% of good output is considered normal. Department 2 Systems Design: Process Costing Solutions to Questions 4-1 A process costing system should be used in situations where a homogeneous product is produced on a continuous basis. Materials = 50,000 + 9,000 + 1,000/2 lost units = 59,500 units, Labor and factory overhead = 50,000 + (9,000 × 2/3) + 1,000/2 lost units = 56,500, Materials = $41,650 / 59,500 = $0.70 per unit, Labor = $101,700 / 56,500 = $1.80 per unit, Factory overhead = $56,500 / 56,500 = $1.00 per unit. The T account for Work in Process in the Solutions carries an opening balance of $20,000.00, but the balance given in the actual question is $15,000. Department 2 Fabrication department: 300 units, 1/3 complete as to raw materials and 1/2 complete as to direct labor. Units received from preceding department A, (Abnormal loss – 1/2 materials, labor, and overhead), Labor and factory overhead = 9,000 + (2,000, Conversion cost (labor + factory overhead), Ending work in process inventory (50% complete). Shipping for finished goods are: 400 units. Addition of materials and beginning inventory, Business and Quality Improvement Programs, Costing of Units Transferred Out; Abnormal Loss, Cost of Production Report; Normal and Abnormal Loss, Cost of Production Report; Spoiled Units – Normal and Abnormal, Definition and explanation of process costing system, Characteristics and Procedures of Process Costing System, Procedure for Materials, Labor and Factory Overhead Costs in a Process Costing System, General Questions and Answers About Process Costing, Cost Flow and Journal Entries–Process Costing System, Characteristics and Procedure of Process Costing System, General Questions and Answers about Process Costing System, Accounting Principles and Accounting Equation. A company’s Department 2 costs for June were: The quantity schedule shows 12,000 units were received during the month from Department 1; 7,000 units were transferred to finished goods; and 5,000 units in process at the end of June were 50% complete as to materials cost and 25% complete as to conversion cost.
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