AE 22: PROCESS COSTING – AVERAGE METHOD

CUTTING DEPARTMENT

Cost from January (Beginning WIP - February)

Materials 22,560.00

Labor 13,536.00

Overhead 28,952.00

WIP, beg. 65,048.00

Cost Incurred for the Current Month

Materials 69,944.00

Labor 82,416.00

Overhead 133,886.00

Total Costs 286,246.00

Cutting Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 3,760

Started in Process 11,160

Transferred Out to Next Dept. 9,600

WIP, end. 5,320

Stage of Completion of WIP Beginning Ending

 Materials 100% 100%

Labor 40% 45%

Overhead 55% 55%

Cutting Department

Equivalent Units of Production

February 2022

Materials

Transferred Out to Next Dept. 9,600.00

WIP, end. (5,320 x 100%) 5,320.00

EU for Materials 14,920.00

Labor

Transferred Out to Next Dept. 9,600.00

WIP, end. (5,320 x 45%) 2,394.00

EU for Labor 11,994.00

Overhead

Transferred Out to Next Dept. 9,600.00

WIP, end. (5,320 x 55%) 2,926.00

EU for OH 12,526.00

Cutting Department
Cost of Production Report

February 2022
Quantity Schedule Units

Quantity to be
accounted for:

WIP, beg. 3,760

Started in Process - February 11,160

 Total units to be accounted for 14,920

Quantity
accounted for:

Transferred Out to Next Dept. 9,600

WIP, end. 5,320

Total units accounted for 14,920

Cost Schedule
Unit Costs
Costs to be accounted for: Total Cost EU

Materials WIP, beg. 22,560.0 14

0

Added in 69,944.0
Feb. 0

Total 92,504.0
Materials 0

Labor WIP, beg. 13,536.0 11

0

Added in 82,416.0
Feb. 0

Total Labor 95,952.0

0

Overhead WIP, beg. 28,952.0 12

0 1

Added in 133,886.
Feb. 00

Total OH 162,838.
00

Total costs to be accounted for 351,294. 27.2

00 0

Costs accounted
for:

Transferred Out to the Next Dept. 261,120. 9,60 27.2

00 0 0

WIP, end.
 Materials 32,984.00 6.20

Labor 19,152.00 8.00

Overhead 38,038.00 13.0

0

Total WIP 90,174.0

0

Total costs accounted for 351,294.

00

ASSEMBLY DEPARTMENT

Cost from January

Cost Transferred In from Prior Dept. 28,130.00

Cost Incurred in this Dept.

Materials 1,455.00

Labor 5,529.00

Overhead 4,656.00

Total Costs from January 39,770.00

Cost Transferred In from Prior Dept. 261,120.00

Cost Incurred in this Dept.

Materials 23,128.00

Labor 70,638.00

Overhead 74,735.00

Total Costs in the Current Month 429,621.00

Assembly Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 970

Transferred In - February 9,600

Transferred Out to Next Dept. 9,470

WIP, end. 1,100

Stage of Completion of WIP Beginnin Ending

g

Transferred In Cost 100% 100%

Materials 60% 55%

Labor 60% 55%

Overhead 60% 55%

Assembly Department

Equivalent Units of Production

February 2022

Transferred In Costs from Prior Dept.

Transferred Out to Next Dept. 9,470

WIP, end. (1,100 x 100%) 1,100

EU for Transferred In Costs 10,570

Materials

Transferred Out to Next Dept. 9,470

WIP, end. (1,100 x 55%) 605

EU for Materials 10,075

Labor
 Transferred Out to Next Dept. 9,470

WIP, end. (1,100 x 55%) 605

EU for Labor 10,075

Overhead

Transferred Out to Next Dept. 9,470

WIP, end. (1,100 x 55%) 605

EU for OH 10,075

Assembly Department

Cost of Production Report

February 2022

Quantity Schedule Units

Quantity to be accounted for:

WIP, beg. 970

Transferred In - February 9,600

Total units to be accounted for 10,570

Quantity accounted for:

Transferred Out to Next Dept. 9,470

WIP, end. 1,100

Total units accounted for 10,570

Cost Schedule Total EU Unit

Costs Cost
s

Costs to be accounted for:

Costs Transferred In fr. Prior Dept.

WIP, beg. 28,130.0 1

0
 Transferred In - February 261,120.
00

Total Transferred In Costs 289,250.

00

Costs Incurred in this Dept.

Materials WIP, beg. 1,455.00 10,0 2.44

75
Added in Feb. 23,128.0
0

Total 24,583.0
Materials 0

Labor WIP, beg. 5,529.00 10,0 7.56

75
Added in Feb. 70,638.0
0

Total Labor 76,167.0

0

Overhead WIP, beg. 4,656.00 10,0 7.88

75
Added in Feb. 74,735.0
0

Total OH 79,391.0
0

Total Costs in this Dept. 180,141. 17.8

00 8

Total costs to be accounted for 469,391. 45.2

00 5

Costs accounted for:

Transferred Out to Next Dept. 428,471. 9,47 45.2

90 0 5

WIP, end.

Costs from Prior Dept. 30,101.7 1,10 27.3

0 0 7

Costs Incurred in this Dept.

 Materials 1,476.20 605 2.44

Labor 4,573.80 605 7.56

Overhead 4,767.40 605 7.88

Total WIP 40,919.1

0

Total costs accounted for 469,391.

00

PACKAGING DEPARTMENT

Cost from January

Cost Transferred In from Prior Dept. 133,280.00

Cost Incurred in this Dept.

Materials 0.00

Labor 2,230.00

Overhead 1,020.00

Total Costs from January 136,530.00

Cost Transferred In from Prior Dept. 428,471.90

Cost Incurred in this Dept.

Materials 2,560.00

Labor 20,480.00

Overhead 16,885.00

Total Costs in the Current Month 468,396.90

Packaging Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 2,720

Transferred In - February 9,470

Transferred Out to FG 6,370

WIP, end. 5,820

Stage of Completion of WIP Beginnin Ending

g

Transferred In Cost 100% 100%

Materials 0% 0%

Labor 20% 20%

Overhead 15% 15%

Packaging Department

Equivalent Units of Production

February 2022

Transferred In Costs from Prior Dept.

Transferred Out to Next Dept. 6,370

WIP, end. (5,820 x 100%) 5,820

EU for Transferred In Costs 12,190

Materials

Transferred Out to Next Dept. 6,370

WIP, end. (5,820 x 0%) 0

EU for Materials 6,370

Labor
 Transferred Out to Next Dept. 6,370

WIP, end. (5,820 x 20%) 1,164

EU for Labor 7,534

Overhead

Transferred Out to Next Dept. 6,370

WIP, end. (5,820 x 15%) 873

EU for OH 7,243

Packaging Department

Cost of Production Report

February 2022

Quantity Units
Schedule

Quantity to be accounted for:

WIP, beg. 2,720

Transferred In - February 9,470

Total units to be accounted 12,190

for

Quantity accounted for:

Transferred Out to Next Dept. 6,370

WIP, end. 5,820

Total units accounted for 12,190

Cost Schedule Total EU Unit

Costs Costs

Costs to be accounted for:

Costs Transferred In fr. Prior Dept.

WIP, beg. 133,280.0 12,1 46.08

0 90
 Transferred In - February 428,471.9
0

Total Transferred In Costs 561,751.9

0

Costs Incurred in this Dept.

Materials WIP, beg. 0.00 6,37 0.40

0
Added in Feb. 2,560.00

Total Materials 2,560.00

Labor WIP, beg. 2,230.00 7,53 3.01

4
Added in Feb. 20,480.00

Total Labor 22,710.00

Overhe WIP, beg. 1,020.00 7,24 2.47

ad 3

Added in Feb. 16,885.00

Total OH 17,905.00

Total Costs in this Dept. 43,175.00 5.89

Total costs to be accounted for 604,926.9 51.97

0

Costs accounted for:

Transferred Out to FG 331,057.0 6,37 51.97

0 0

WIP, end.

Costs from Prior Dept. 268,203.1 5,82 46.08

2 0

Costs Incurred in this

Dept.

Materials 0.00 0 0.40

Labor 3,508.69 1,16 3.01

4
 Overhead 2,158.09 873 2.47

Total 273,869.9
WIP 0

Total costs accounted for 604,926.9

0

AE 22: PROCESS COSTING – FIFO METHOD

CUTTING DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Materials 22,560.00

Labor 13,536.00

Overhead 28,952.00

WIP, beg. 65,048.00

Cost Incurred for the Current Month

Materials 69,944.00

Labor 82,416.00

Overhead 133,886.00

Total Costs 286,246.00

Cutting
Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 3,76

 0

Started in Process 11,16

0

Transferred Out to Next

Dept.

From WIP, beg. 3,760

Started and Completed - February 5,840

Total Transferred Out to Next Dept. 9,60

0

WIP, end. 5,32

0

Stage of Completion of WIP Beg

E

Materials 100% 100

%

Labor 40% 45%

Overhead 55% 55%

Cutting Department

Equivalent Units of Production

February 2022

Materials

Transferred Out to Next Dept.

Completion of WIP, beg. (3,760 x 0%) 0.00

Started and Completed 5,840.00

WIP, end. (5,320 x 100%) 5,320.00

EU for Materials 11,160.0

0

Labor

Transferred Out to Next Dept.

 Completion of WIP, beg. (3,760 x 2,256.00
60%)

Started and Completed 5,840.00

WIP, end. (5,320 x 45%) 2,128.00

EU for Labor 10,224.0

0

Overhead

Transferred Out to Next Dept.

Completion of WIP, beg. (3,760 x 1,692.00

45%)

Started and Completed 5,840.00

WIP, end. (5,320 x 55%) 2,926.00

EU for OH 10,458.0
0

Cutting Department

Cost of Production Report

February 2022

Quantity Unit
Schedule s

Quantity to be accounted for:

WIP, beg. 3,76

0

Started in Process - February 11,16

0

Total units to be accounted for 14,9

20

Quantity accounted for:

Transferred Out to Next

 Dept.

From WIP, beg. 3,760

Started and 5,840 9,60

Completed 0

WIP, end. 5,32

0

Total units accounted for 14,9

20

Cost
Schedule

Costs to be accounted for: Total EU Unit

Cost Costs

WIP, beg. 65,048.0

0

Cost Incurred in February

Materials 69,944.0 11,16 6.27

0 0

Labor 82,416.0 10,2 8.06

0 24

Overhead 133,886. 10,4 12.80

00 58

Total Cost in this Department 286,246. 27.13

00

Total costs to be accounted for 351,294.

00

Costs accounted for:

Transferred Out to the Next Dept.

From WIP, beg. 65,048.0

0

Cost Incurred in February

Materials 0.00 0 6.27

Labor 18,185.69 8.06

Overhead 21,661.42 12.80

Costs of Completed WIP, beg. 104,8 27.90

 Started and Completed 158,44 27.13
5

Total Costs Transferred Out 263,338. 9,60 27.43

24 0

WIP, end.

Materials 33,34 6.27

5

Labor 17,15 8.06

2

Overhead 37,45 12.80

2

Total WIP 87,955.7

6

Total costs accounted for 351,294.

00

ASSEMBLY DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Cost Transferred In fr. Prior Dept. 28,130.00

Cost in this Department

Materials 1,455.00

Labor 5,529.00

Overhead 4,656.00

WIP, beg. 39,770.00

Cost Incurred for the Current Month

Cost Transferred In fr. Prior Dept. 263,338.24

Cost in this Department

Materials 23,128.00

Labor 70,638.00
 Overhead 74,735.00

Total Costs 431,839.24

Assembly Department

Monthly Production Report

February 2022

Quantity

WIP, beg. 970

Started in Process 9,60

0

Transferred Out to Next Dept.

From WIP, beg. 970

Started and Completed - 8,500

February

Total Transferred Out to Next 9,47

Dept. 0

WIP, end. 1,10

0

Stage of Completion of Beg

WIP E

Transferred In 100% 100

Cost %

Materials 60% 55%

Labor 60% 55%

Overhead 60% 55%

Assembly Department

Equivalent Units of Production

February 2022
Transferred In Cost fr. Prior Dept.

Transferred Out to Next Dept.

Completion of WIP, beg. (970 x 0%) 0

Started and Completed 8,500

WIP, end. (1,100 x 100%) 1,100

EU for Transferred In Cost 9,600

Materials

Transferred Out to Next Dept.

Completion of WIP, beg. (970 x 40%) 388.00

Started and Completed 8,500.00

WIP, end. (1,100 x 55%) 605.00

EU for Materials 9,493.00

Labor

Transferred Out to Next Dept.

Completion of WIP, beg. (970 x 40%) 388.00

Started and Completed 8,500.00

WIP, end. (1,100 x 55%) 605.00

EU for Labor 9,493.00

Overhea
d

Transferred Out to Next Dept.

Completion of WIP, beg. (970 x 40%) 388.00

Started and Completed 8,500.00

WIP, end. (1,100 x 55%) 605.00

EU for OH 9,493.00

Assembly Department
Cost of Production Report

February 2022

Quantity Schedule Unit

s

Quantity to be accounted for:

WIP, beg. 970

Started in Process - February 9,60

0

Total units to be accounted for 10,5

70

Quantity accounted for:

Transferred Out to Next Dept.

From WIP, beg. 970

Started and Completed 8,500 9,47

0

WIP, end. 1,10

0

Total units accounted for 10,5

70

Cost Schedule

Costs to be accounted for: Total Cost EU Unit Costs

WIP, beg. 39,770.00

Cost Incurred in February

Transferred In Cost fr. Prior Dept. 263,338.2 9,60 27.43

4 0

Materials 23,128.00 9,49 2.44

3

Labor 70,638.00 9,49 7.44

3

Overhead 74,735.00 9,49 7.87

3

Total Cost in this Department 168,501.0 17.75

 0

Total Costs in February 431,839.2 45.18

4

Total costs to be accounted for 471,609.2

4

Costs accounted for:

Transferred Out to the Next Dept.

From WIP, beg. 39,770.00

Cost Incurred in February

Materials 945.29 388 2.44

Labor 2,887.13 388 7.44

Overhead 3,054.59 388 7.87

Costs of Completed WIP, beg. 46,657.01 970 48.10

Started and Completed 384,039.29 8,500 45.18

Total Costs Transferred Out 430,696.3 9,47 45.48

0 0

WIP, end.

Transferred In Cost fr. Prior Dept. 30,174.17 27.43

Materials 1,473.97 605 2.44

Labor 4,501.84 605 7.44

Overhead 4,762.95 605 7.87

Total WIP 40,912.94

Total costs accounted for 471,609.2

4

PACKAGING DEPARTMENT

Cost from January (Beginning WIP - Current Month)

Cost Transferred In fr. Prior Dept. 133,280.00

 Cost in this Department

Materials 0.00

Labor 2,230.00

Overhead 1,020.00

WIP, beg. 136,530.0

0

Cost Incurred for the Current Month

Cost Transferred In fr. Prior Dept. 430,696.30

Cost in this Department

Materials 2,560.00

Labor 20,480.00

Overhead 16,885.00

Total 470,621.3
Costs 0

Packaging Department

Monthly
Production
Report

February 2022

Quantity

WIP, beg. 2,72

0

Started in Process 9,47

0

Transferred Out to
Next Dept.

From WIP, beg. 2,720

Started and 3,650

Completed - February
 Total Transferred Out to 6,37
FG 0

WIP, end. 5,82

0

Stage of Completion Beg

of WIP E

Transferred In Cost 100% 100

%

Materials 0% 0%

Labor 20% 20%

Overhead 15% 15%

Packaging Department

Equivalent Units of Production

February 2022

Transferred In Cost fr. Prior Dept.

Transferred Out to Next Dept.

Completion of WIP, beg. (2,720 x 0%) 0

Started and Completed 3,650

WIP, end. (5,820 x 100%) 5,820

EU for Transferred In Cost 9,470

Materials

Transferred Out to Next Dept.

Completion of WIP, beg. (2,720 x 100%) 2,720.00

Started and Completed 3,650.00

WIP, end. (5,820 x 0%) 0.00

EU for Materials 6,370.00

Labor
 Transferred Out to Next Dept.

Completion of WIP, beg. (2,720 x 80%) 2,176.00

Started and Completed 3,650.00

WIP, end. (5,820 x 20%) 1,164.00

EU for Labor 6,990.00

Overhea
d

Transferred Out to Next Dept.

Completion of WIP, beg. (2,720 x 85%) 2,312.00

Started and Completed 3,650.00

WIP, end. (5,820 x 15%) 873.00

EU for OH 6,835.00

Packaging Department

Cost of Production Report

February 2022

Quantity Schedule Unit

s

Quantity to be accounted for:

WIP, beg. 2,72

0

Started in Process - February 9,47

0

Total units to be accounted for 12,1

90

Quantity accounted for:

Transferred Out to FG

From WIP, beg. 2,720

Started and Completed 3,650 6,37

0
 WIP, end. 5,82
0

Total units accounted for 12,1

90

Cost Schedule

Unit
Costs to be accounted for: Total Cost EU Costs

WIP, beg. 136,530.

00

Cost Incurred in February

Transferred In Cost fr. Prior Dept. 4 9,47 45.48

0

Materials 2,560.00 6,37 0.40

0

Labor 20,480.0 6,99 2.93

0 0

Overhead 16,885.0 6,83 2.47

0 5

Total Cost in this Department 39,925.0 5.80

0

Total Costs in February 470,621. 51.28

30

Total costs to be accounted for 607,151.

30

Costs accounted for:

Transferred Out to the FG

From WIP, beg. 136,530.

00

Cost Incurred in February

Materials 1,093.12 2 0.40

Labor 6,375.46 2 2.93

Overhead 5,711.50 2 2.47

Costs of Completed WIP, beg. 149,7 55.04

 Started and Completed 187,180.14 3,650 51.28

Total Costs Transferred Out 336,890. 6,37 52.89

23 0

WIP, end.

Transferred In Cost fr. Prior De 45.48

Materials 0.00 0 0.40

Labor 3,410.40 1 2.93

Overhead 2,156.64 8 2.47

Total WIP 270,261.

07

Total costs accounted for 607,151.

30