Ae 211 Module 6 - Exercise 6-5 To 6-9
Ae 211 Module 6 - Exercise 6-5 To 6-9
Ae 211 Module 6 - Exercise 6-5 To 6-9
EXERCISES:
Exercise 6-5 EVEN APPLICATION – FIRST DEPT
At the end of January, there were 100 units in process which were 60% complete. During the current
month, 850 units were transferred to the next department. At the end of the month, there were 150
units still in process with 50% completion. Prepare a cost of production report for month.
Units:
In process beg, Jan. 31, 60% complete 100u
Transferred to the next dept. 850u
In process end, Feb. 29 , 50% complete 150u
[A] FIFO;
Shankar Manufacturing Company
Cost of production report
For the Month Ended February 29
Quantity Schedule
WIP, beginning 100
Started in process 850
Total units accounted for 950
FIFO
Actual Units Work done Equivalent Production
WIP, beg. finished 100 60% 60
Transferred 700 100% 700
WIP, end 150 50% 75
Total units accounted for 950 835
Cost Schedule
Total Cost Unit cost
Materials 49,470 49.47
Labor 19,250 19.25
Overhead 27,735 27.74
Total Cost 96,455 96.46
Astro2 Inc. uses two producing departments namely X and Y. In Dep’t Y, the second dept,
costs are applied evenly throughout the process. Prepare the cost of production report of Dept Y
using the following data for February of the current year:
Astro2 Inc.
Cost of Production Report
For the Month Ended February 29
Department Y
Quantity data:
WIP, beg 6,000
Started in Process 35,000
Units to be Accounted for 41,000
Zay Corporation manufactures a product in two departments, Cutting and Assembly. During
February, the Assembly department received 2,100 units from the Cutting department and 2,000 units
were transferred out of the Assembly department to finished goods. At the end of the month, 500
units were still in process, they were 80% complete as to materials and 60% complete as to conversion
cost. Cost data related to February operations follow:
Required: Prepare the February cost of production report for the Assembly Dep’t
Zay Corporation
Cost of Production Report
For the Month of February
Assembly Dep’t
Quantity Schedule
Units
In process, Feb. 1 2,100
Transferred 2,000
Units to be Accounted for 4,100
Accounted for as follows: Actual Work done Material Work done Conversion Cost
Finished and Transferred
In process, beg 2,100 100% 2,100 100% 2,100
Transferred 1,500 100% 1,500 100% 1,500
In process, end 500 80% 400 60% 300
Total Units as Accounted 4,100
Total Equivalent Production 4,000 3,900
The ICT Manufacturing Corp. has its product processed in Depatments M and P. The
production data for March are given below:
Department M Department P
Quantity data:
Cost data:
Factory costs:
Required: Prepare the cost of production report for the two departments.
Quantity Schedule
WIP, beg 5,000
Started in process 30,000
Units to be Accounted 35,000
Accounted for as follows: Actual Work Done Material Work done Conversion Cost
Finish and Transferred 28,000 100% 28,000 100% 28,000
WIP, end 7,000 2/7 2,000 100% 7,000
Total Units as Accounted 35,000
Total equivalent production 30,000 35,000
Quantity Schedule
WIP, beg 8,000
Units to be Accounted 8,000
Accounted for as follows: Actual Work Done Materials Work Done Conversion Cost
Finished and Transferred 30,000 100% 30,000 100% 30,000
In process, March 31 (22,000) 2/5 ( 8,800 ) 100% (22,000)
Total Unit as Accounted 8,000
Total Equivalent Production 21,200 8,000
Mahaba Manufacturing Co. operates three departments with the following processes:
Cutting – This department adds 60% of the materials at the start of the process, 40% when the process
is 4/5 completed, and applies labor and overhead uniformly to production.
Grinding – This department adds all the materials at the end of processing, applying conversion costs
evenly throughout the process.
Mixing – This department adds 30% of the materials at the beginning of processing, 30% when
processing is ½ completed, and 40% at the end of the process. It applies conversion costs evenly
throughout the process.
Production data for the month of March of the current year follows:
Cost data:
Factory costs:
Required: Prepare the cost of production report for each of the three departments.
Quantity Schedule:
WIP, beginning 10,000
Started in process 42,000
Total units to be accounted for 52,000
Quantity Schedule:
WIP, beginning 8,000
Started in process 44,000
Total units to be accounted for 52,000
Accounted units
Finished and Transferred 44,000 u
Started in Process:
Cost Prior dep’t @ 12.38 P 544,720 532,340
Cost Prior to this dep’t @ 10.13 445,720 435,590
Total cost transferred of Dep’t @22.51 P 990,440
Work In process, end 6,000 u
Cost prior dep’t @12.38 P 74,280
Cost this dep’t @ 10.13 40,520 114,800
Total cost as accounted for P 1,105,240
The Matis Manufacturing Company uses average costing and manufactures a single product in two
producing departments. For the month of April, the cost and production data were as follows:
Mixing Finishing
Quantity Data:
Stage of Completion
Stage of Completion
Cost data:
Materials P42,000 -
Materials 90,000 -
Prepare a cost of production report for both departments for the month of April.