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Cost MGMT Work Sheet

The document provides examples of process costing calculations for departments. It includes physical units started and completed as well as percentage of completion for materials and conversion costs. Costs of materials, conversion and beginning work in process are given. Equivalent units, cost per equivalent unit and allocation of costs between completed units and ending work in process are calculated.

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40 views4 pages

Cost MGMT Work Sheet

The document provides examples of process costing calculations for departments. It includes physical units started and completed as well as percentage of completion for materials and conversion costs. Costs of materials, conversion and beginning work in process are given. Equivalent units, cost per equivalent unit and allocation of costs between completed units and ending work in process are calculated.

Uploaded by

kennaa701
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. Lindex Company uses a process costing system.

The following data are available for one department


for October:

Percent Completed

Units Materials Conversion

Work in Process, October 1 50,000

Work in Process, October 31 30,000 100% 50%

The department started 390,000 units into production during the month and transferred 410,000
completed units to the next department. Compute the equivalent units of production for October

2. April 1, 2020, a Company had 40,000 units in its work in process inventory. During April, 320,000
units were started in Department X. 340,000 units were transferred to department Y during the
month. On April 30, 2020, the company had 20,000 units in its work in its process inventory, 100%
complete as to materials and 40% complete as to conversion cost. Compute the equivalent units of
production for April
3. LL Company uses a process costing system. The following data are available for one department for
October:

Percent Completed

Units Materials Conversion

Work in Process, May 1 30,000

Work in Process, May 31 20,000 50% 25%

The department started 140,000 units into production during the month and transferred 150,000
completed units to the next department.

Cost data
Materials cost Conversion Cost

Work in process inventory on May 1: $28,300 $7,450

Cost added during May: $192,500 $107,250

I. Compute the equivalent units of production for may


II. Compute cost per equivalent unit for May
III. Allocate cost between completed and transferred out and units of ending WIP
IV. Record the necessary entries for may.

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4. Dustin Plastics Company manufactures plastic moldings for car seats. It's process costing
system uses two cost categories, direct materials and conversion costs. Each product must pass
through Department A and Department B. Direct materials are added at the beginning of
production. Conversion costs are allocated evenly throughout production.

Data for Department A for February 2012 are:


 Work in process, beginning inventory, 40% complete 200 units
 Units started during February 600 units
 Work in process, ending inventory: 100 units
30% complete as to conversion costs
100% complete as to materials
Costs for the Department A for February 2012 are:
 Work in process, beginning inventory:
Direct materials $200,000
Conversion costs $200,000
 Direct materials costs added during February $2,000,000
 Conversion costs added during February $2,500,000
Required :
a) Calculate equivalent units for conversion costs
b) Calculate equivalent units for Direct materials costs
c) Allocate cost to completed and WIP ending units
d) Record the necessary entries
5. Amp Disk Company operates a computer disk manufacturing plant. Direct materials are added
at the end of the process. The following data were for August 20X5:

 Work in process, beginning inventory 100,000 units


 Transferred in during current period 300,000 units
 Completed and transferred out 250,000 units
 Work in process, ending inventory 50,000
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)

Required: Calculate equivalent units

2
6. Hudson Company manufactures boat docks on an assembly line. Its process costing system
uses two cost categories, direct materials and conversion costs. Each product must pass through
the Assembly Department and the Finishing Department. Direct materials are added at the
beginning of the production process. Conversion costs are allocated evenly throughout
production.

 Data for the Assembly Department for May 20X5 are:


 Work in process, beginning inventory: 70 units
 Units started during May 40 units
 Work in process, ending inventory: 10 units
Direct materials (100% complete)
Conversion costs (50% complete)
 Costs during May
o Direct materials $ 440,000
o Conversion costs $160,000
 Work in process, beginning cost
o Direct materials $140,000
o Conversion costs $260,000
Required :
a) summarize physical unit
b) Calculate equivalent units
c) summarize cost and compute cost per unit
d) assign cost to completed units and units of WIP ending
e) Record the necessary entries
7. Apple Book and Music Store has two service departments, Warehouse and Data Center.
Warehouse Department costs of $350,000 are allocated on the basis of budgeted
warehouse-hours. Data Center Department costs of $150,000 are allocated based on the
number of computer log-on hours. The costs of operating departments Music and Books are
$250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of
computer log-on hours are as follows:

3
Required:

Allocate support costs to production departments using all the three methods

8. Mega Printing has two service departments, S1 and S2, and two production departments, P1
and P2. The data for May were as follows:

Required:
a. Set up algebraic equations in linear form for each activity under reciprocal method .
b. allocate the cost using the reciprocal method.

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