4. PT Prahasta produces products through two departments with cost calculations using the weighted average method. In early March 2022, the department 1 has 25 units of product in progress with a completion rate of 100% cost raw materials and 50% conversion costs. Products added in the month process this is 100 units, while the finished ones are processed and transferred to the department 2 as many as 110 units. At the end of the month, unfinished products are already processed absorbs 100% raw material costs and 75% conversion costs. Department 2 completes production and transfers 120 units to the warehouse and at the end of the month, there are still 10 units left with a completion rate of 30% labor costs and 70% factory overhead costs. At the beginning of the month the product in process in this department has absorbed 30% labor costs and 50% factory overhead costs. It is known that the cost of goods in the process at the beginning of the month in department 1 is Rp. 15,000 for raw materials. $12,000 for labor and $14,000 for factory overhead. While the cost of goods in the process at the beginning of the month in department 2 received from department 1 is Rp. 20,000. Furthermore, labor costs Rp. 13,000 and factory overhead costs Rp. 11,000. Production costs in department I used this month are raw material costs of Rp. 22,000, labor costs of Rp. 21,000 and factory overhead costs of Rp. 23,000. For department 2, it costs Rp. 24,000 in labor costs and Rp. 25,000 in factory overhead costs. Requested: Prepare production cost reports for departments 1 and 2 in March 2022.
4. PT Prahasta produces products through two departments with cost calculations using the weighted average method. In early March 2022, the department 1 has 25 units of product in progress with a completion rate of 100% cost raw materials and 50% conversion costs. Products added in the month process this is 100 units, while the finished ones are processed and transferred to the department 2 as many as 110 units. At the end of the month, unfinished products are already processed absorbs 100% raw material costs and 75% conversion costs. Department 2 completes production and transfers 120 units to the warehouse and at the end of the month, there are still 10 units left with a completion rate of 30% labor costs and 70% factory overhead costs. At the beginning of the month the product in process in this department has absorbed 30% labor costs and 50% factory overhead costs. It is known that the cost of goods in the process at the beginning of the month in department 1 is Rp. 15,000 for raw materials. $12,000 for labor and $14,000 for factory overhead. While the cost of goods in the process at the beginning of the month in department 2 received from department 1 is Rp. 20,000. Furthermore, labor costs Rp. 13,000 and factory overhead costs Rp. 11,000. Production costs in department I used this month are raw material costs of Rp. 22,000, labor costs of Rp. 21,000 and factory overhead costs of Rp. 23,000. For department 2, it costs Rp. 24,000 in labor costs and Rp. 25,000 in factory overhead costs. Requested: Prepare production cost reports for departments 1 and 2 in March 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:4. PT Prahasta produces products through two departments with cost calculations
using the weighted average method. In early March 2022, the department
1 has 25 units of product in progress with a completion rate of 100% cost
raw materials and 50% conversion costs. Products added in the month process
this is 100 units, while the finished ones are processed and transferred to the department
2 as many as 110 units. At the end of the month, unfinished products are already processed
absorbs 100% raw material costs and 75% conversion costs.
Department 2 completes production and transfers 120 units to the warehouse and at
the end of the month, there are still 10 units left with a completion rate of 30% labor
costs and 70% factory overhead costs. At the beginning of the month the product in
process in this department has absorbed 30% labor costs and 50% factory overhead
costs.
It is known that the cost of goods in the process at the beginning of the month in
department 1 is Rp. 15,000 for raw materials. $12,000 for labor and $14,000 for
factory overhead. While the cost of goods in the process at the beginning of the month
in department 2 received from department 1 is Rp. 20,000. Furthermore, labor costs
Rp. 13,000 and factory overhead costs Rp. 11,000.
Production costs in department I used this month are raw material costs of Rp.
22,000, labor costs of Rp. 21,000 and factory overhead costs of Rp. 23,000.
For department 2, it costs Rp. 24,000 in labor costs and Rp. 25,000 in factory
overhead costs.
Requested:
Prepare production cost reports for departments 1 and 2 in March 2022.
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