Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April. Work in process on April 1 had 75,000 units made up of the following. Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 192,000 100 % Costs added by the Assembling Department Direct materials $ 120,000 100 % Direct labor 43,200 60 % Manufacturing overhead 27,600 50 % $ 190,800 Work in process, April 1 $ 382,800 During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs. Direct materials $ 576,000 Direct labor 216,000 Manufacturing overhead 113,400 Total costs added $ 905,400 Assembling finished 300,000 units and transferred them to the Packaging Department. At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows. Direct materials 90 % Direct labor 70 Manufacturing overhead 35 Required: a. Prepare a production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)
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.
Problem 8-54 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-4, 5)
Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average
Work in process on April 1 had 75,000 units made up of the following.
| Amount | Degree of Completion | |||||
| Prior department costs transferred in from the Molding Department | $ | 192,000 | 100 | % | ||
| Costs added by the Assembling Department | ||||||
| Direct materials | $ | 120,000 | 100 | % | ||
| Direct labor | 43,200 | 60 | % | |||
| Manufacturing |
27,600 | 50 | % | |||
| $ | 190,800 | |||||
| Work in process, April 1 | $ | 382,800 | ||||
During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs.
| Direct materials | $ | 576,000 | |
| Direct labor | 216,000 | ||
| Manufacturing overhead | 113,400 | ||
| Total costs added | $ | 905,400 | |
Assembling finished 300,000 units and transferred them to the Packaging Department.
At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows.
| Direct materials | 90 | % |
| Direct labor | 70 | |
| Manufacturing overhead | 35 | |
Required:
a. Prepare a production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
