### Cost of Production Report: Department A (December)**Austin Co.** manufactures a product called *Aster* in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out (FIFO) method of inventory costing. Below is the unit and cost data for the first process (Department A) for the month of December:| **Units** | **Completion** | **Cost** ||-----------------------|----------------|-------------|| Work in process inventory: | | || December 1 | 12,000 | 60% | $140,400 || December 31 | 5,000 | 40% | ? || **Started in December:** | **14,000** | | || Direct materials cost | | $106,400 || Conversion cost | | $70,310 || **Completed in December:** | **21,000** | | ? |**Required:**Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "0".---#### Explanation of the Data:- **Units and Completion:** The table lists the number of units at various stages of completion at the beginning and end of December. - On December 1, there were 12,000 units in process, with 60% completion. - On December 31, 5,000 units were still in process, with 40% completion. - During December, an additional 14,000 units were started. - A total of 21,000 units were completed during December.- **Cost Information:** - Materials cost for the process in December amounted to $106,400. - Conversion costs, which include labor and overhead, amounted to $70,310.#### Tasks:*Prepare Austin's Department A cost of production report for December* involves several steps:- Calculate the equivalent units for materials and conversion.- Assign costs to units completed and units still in process at month-end.- Apportion costs using the FIFO method.This report will help in understanding how the costs are distributed within the production process and assist in managerial decision-making.

Name: ### Cost of Production Report: Department A (December)**Austin Co.**
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ### Cost of Production Report: Department A (December)**Austin Co.** manufactures a product called *Aster* in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out (FIFO) meth

An equivalent unit of production is the portion of output units that are partially completed at the…

Business

Accounting

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow: Units Completion Cost Work in process inventory: December 1 12,000 60% $140,400 December 31 5,000 40% ? Started in December: 14,000 Direct materials cost 106,400 Conversion cost 70,310 Completed in December 21,000 Required: Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "O".

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow: Units Completion Cost Work in process inventory: December 1 12,000 60% $140,400 December 31 5,000 40% ? Started in December: 14,000 Direct materials cost 106,400 Conversion cost 70,310 Completed in December 21,000 Required: Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter "O".

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 10P: Aero Aluminum Inc. uses a process cost system. The records for May show the following information:...

See similar textbooks

Similar questions

Aero Aluminum Inc. uses a process cost system. The records for May show the following information: Using the data in P5-9, draft the journal entries to record: 1. The cost of goods received from Rolling during the month. 2. The production costs incurred in Converting during the month. 3. The cost of goods completed and transferred to finished goods during the month.
The first production department of Stone Incorporated reports the following for April Direct Materials Percent Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory The production department had the cost information below. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Required a Cost per equivalent unit of production: FIFO method Costs added this period Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Required b. Cost assignment-FIFO Beginning work in process To complete beginning work in process Direct materials Conversion Units 83,000 437,000 415,000 105,000 Started and completed Direct materials Conversion Completed and transferred out Ending work in process Direct materials Conversion #253,655 39,000 Total costs accounted for 1,529,595 1,012,100 (a) Calculate the costs per…
Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for The production department had the cost Information below. Required a. Cost per equivalent unit of production: FIFO method Costs added this period - Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Required b Cost assignment-FIFO Beginning work in process To complete beginning work in process Direct materials Conversion Started and completed Direct materials Conversion Units 80,000 422,000 Completed and transferred out Ending work in process Direct materials Conversion. 400,000 102,000 Total costs…
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department: Equivalent Units Direct Materials Conversion Costs % Done Units % Done Units Completed and transferred 100% 5,760 100% 5,760 Ending inventory 100% 1,080 70% 756 Equivalent units of production 6,840 6,516 Also, assume that the beginning inventory had accumulated $3,420 of materials and $9,516 of conversion costs in the previous month. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $8.30 and $24.25, respectively. Calculate the current costs incurred for direct materials during the month of July. Select one: a. $60,192 b. $10,688 c. $53,352 d. None of the amounts listed. e. $12,936
[The following information applies to the questions displayed below] The first production department of Stone Incorporated reports the following for April Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Conversion Costs added this period Direct materials Conversion Total costs to account for The production department had the cost information below. Beginning work in process inventory Direct materials Units 62,000 332,000 Total costs -Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Required b. Cost assignment-Weighted average 310,000 84,000 Weighted average: Cost per equivalent unit; costs assigned to output and inventory Completed and transferred out Direct materials Conversion Total costs completed and transferred out Ending work in process Direct materials Required a Cost per equivalent unit of production: Weighted average method Conversion Total cost of ending…
Men of Culture Company has a process cost system and uses the weighted-average method. The following information is applicable for the month of September. (refer to image) Base on this information, the cost of the units completed is: a. P135,000 b. P113,600 c. P107,800 d. P120,250 e. Some other answer The cost of the ending WIP inventory is a. P27,200 b. P39,200 c. P21,400 d. P32,400 e. Some other answer
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department: Where do the units come from? Beginning Inventory Started Total 700 5,000 5,700 Where do the units.go? Completel Transferred Ending Inventory Total % Work Done? 4,800 100% 900 100% 5,700 Equivalent Units Direct % Work Materials Done? 4,800 900 5,700 100% 70% Conversion Costs 4,800 630 5,430 Also assume that the beginning inventory had accumulated $2,850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $34,998 of materials and $97,412 of conversion costs. Calculate the average cost per equivalent unit for materials costs for the month of July. a. $0.15 b. $0.50 c. $6.14 $6.64 e. $6.97
Required Information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Total Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 82,000 432,000 410,000 104,000 Direct Materials Percent Complete 70% Units 85% Conversion Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. Percent Complete 38% Percent Complete Equivalent units of production: Weighted average method Direct Materials 35% EUP Percent Complete Conversion EUP
Equivalent Units and Related Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process-Filling was as follows on January 1: Work in Process-Filling Department (3,000 units, 70% completed): Direct materials (3,000 x $10.20) Conversion (3,000 x 70% x $6.50) $30,600 13,650 $44,250 The following costs were charged to Work in Process-Filling during January: Direct materials transferred from Reaction Department: 38,700 units at $9.90 a unit Direct labor Factory overhead During January, 38,400 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 3,300 units, 50% completed. Required: 1. Prepare a cost of production report for the Filling Department…
Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Beginning work in process inventory Units started this period Completed and transferred out. Ending work in process inventory Beginning work in process inventory Direct materials Units The production department had the cost information below. Conversion Costs added this period Direct materials Conversion Total costs to account for 60,000 322,000 300,000 82,000 $ 118,472 48,594 850,368 649,296 Direct Materials Conversion Percent Complete 60% 80% $ 167,066 1,499,664 $1,666,730 a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. Percent Complete 40% 30%
FIFO EUP In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The company's direct labor and overhead are considered to be continuously at the same degree of completion. The company uses the FIFO method of process costing. September production information is as follows: Beginning WIP Inventory 24,000 pounds Started during September 60,000 pounds Completed during September 76,800 pounds As of September 1, the beginning WIP Inventory was 30 percent complete as to labor and overhead. On September 30, the ending WIP Inventory was 80 percent complete as to conversion. a. What proportion of work needs to be performed on the beginning inventory units to complete them? % b. What are the equivalent units of production for direct material? c. What are the equivalent units of production for conversion? Check pounds pounds
Please show working Part 1 of the question, see images Part 2 of the question, Assuming that the July 1 work in process inventory includes $256,410 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit $