Edwina Industrial Products (EIP) manufactures cleaning products. The Grant Street Plant produces a single product in three departments: Mixing, Refining, and Packaging. Additional materials are added in the Refining Process when units are 40 percent complete with respect to conversion. Information for operations in September in the Refining process appear as follows. Work in process on September 1 consisted of 28,000 units with the following costs: Degree of Completion 100% Mixing costs transferred in Costs added in Refining Direct materials Conversion costs Work in process September 1 During September, 290,000 units were transferred in from Mixing at a cost of $166,094. The following costs were added in Refining in September. Direct materials Conversion costs Total costs added Amount $ 16,500 $ 460,200 546,800 $ 1,007,000 $ 28,700 31,795 $ 60,495 $ 76,995 100% 80% Refining finished 275,000 units in September and transferred them to Packaging. At the end of September, there were 43,000 units in work-in-process inventory. The units were 20 percent complete with respect to conversion costs. The Refining Department uses the FIFO method of process costing. The Mixing Department at the Grant Street Plant uses the weighted-average method of process costing. If the Mixing Department at the Plant had used the FIFO method, the amount of costs transferred in from Mixing would have been $182,450 for the amount transferred in this month. Required: Prepare a production cost report for September for the Refining Department. LUC
Edwina Industrial Products (EIP) manufactures cleaning products. The Grant Street Plant produces a single product in three departments: Mixing, Refining, and Packaging. Additional materials are added in the Refining Process when units are 40 percent complete with respect to conversion. Information for operations in September in the Refining process appear as follows. Work in process on September 1 consisted of 28,000 units with the following costs: Degree of Completion 100% Mixing costs transferred in Costs added in Refining Direct materials Conversion costs Work in process September 1 During September, 290,000 units were transferred in from Mixing at a cost of $166,094. The following costs were added in Refining in September. Direct materials Conversion costs Total costs added Amount $ 16,500 $ 460,200 546,800 $ 1,007,000 $ 28,700 31,795 $ 60,495 $ 76,995 100% 80% Refining finished 275,000 units in September and transferred them to Packaging. At the end of September, there were 43,000 units in work-in-process inventory. The units were 20 percent complete with respect to conversion costs. The Refining Department uses the FIFO method of process costing. The Mixing Department at the Grant Street Plant uses the weighted-average method of process costing. If the Mixing Department at the Plant had used the FIFO method, the amount of costs transferred in from Mixing would have been $182,450 for the amount transferred in this month. Required: Prepare a production cost report for September for the Refining Department. LUC
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
Topic Video
Question
Please don't give image format and with explanation
Transcribed Image Text:Flow of Production Units
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to be accounted for
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit:
Prior department costs
Materials
Conversion
Costs accounted for.
Costs assigned to units transferred out:
Materials
Conversion
Total costs of units started and completed
Total costs of units transferred out
Costs from beginning WIP inventory
Current costs added to complete beginning WIP inventory:
Prior department costs
Materials
Conversion
Total costs from beginning inventory
Current costs of units started and completed:
Prior department costs
Costs assigned to ending WIP inventory:
Prior department costs
Materials
Conversion
EDWINA INDUSTRIAL PRODUCTS
Total ending WIP inventory
Total costs accounted for
Refining Department
Production Cost Report-FIFO
Physical units Total Costs
0
0
$
S
$
$
0 $
0
Prior
Department
Costs
0
0
0
0 $
0
Materials Conversion
0 $
0
$
0
0
$
0 $
0
0
0
Transcribed Image Text:Edwina Industrial Products (EIP) manufactures cleaning products. The Grant Street Plant produces a single product in three
departments: Mixing, Refining, and Packaging. Additional materials are added in the Refining Process when units are 40 percent
complete with respect to conversion. Information for operations in September in the Refining process appear as follows.
Work in process on September 1 consisted of 28,000 units with the following costs:
Degree of
Completion
100%
Mixing costs transferred in
Costs added in Refining
Direct materials
Conversion costs
Work in process September 1
Amount
$ 16,500
Direct materials
$ 460,200
546,800
Conversion costs
Total costs added $ 1,007,000
$ 28,700
31,795
$ 60,495
$ 76,995
100%
80%
During September, 290,000 units were transferred in from Mixing at a cost of $166,094. The following costs were added in Refining in
September.
Refining finished 275,000 units in September and transferred them to Packaging. At the end of September, there were 43,000 units in
work-in-process inventory. The units were 20 percent complete with respect to conversion costs.
The Refining Department uses the FIFO method of process costing. The Mixing Department at the Grant Street Plant uses the
weighted-average method of process costing. If the Mixing Department at the Plant had used the FIFO method, the amount of costs
transferred in from Mixing would have been $182,450 for the amount transferred in this month.
Required:
Prepare a production cost report for September for the Refining Department.
Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number.
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