Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 17,000 units made up of the following: Prior department costs transferred in from the Extruding Department Costs added by the Fabricating Department Direct materials Direct labor Manufacturing overhead Work in process, September 11 Direct materials Direct labor During September, 75,000 units were transferred in from the Extruding Department at a cost of $556,250. The Fabricating Department added the following costs: Manufacturing overhead Total costs added $ 214,200 64,800 35,480 $314,480 Direct materials Direct labor. Manufacturing overhead Amount $ 85,750 $ 46,000 11,300 10,520 $67,820 $ 153,570 Degree of Completion 100% 90% 70% 35% Fabricating finished 62,000 units and transferred them to the Packaging Department. At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows: 100% 60 50
Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 17,000 units made up of the following: Prior department costs transferred in from the Extruding Department Costs added by the Fabricating Department Direct materials Direct labor Manufacturing overhead Work in process, September 11 Direct materials Direct labor During September, 75,000 units were transferred in from the Extruding Department at a cost of $556,250. The Fabricating Department added the following costs: Manufacturing overhead Total costs added $ 214,200 64,800 35,480 $314,480 Direct materials Direct labor. Manufacturing overhead Amount $ 85,750 $ 46,000 11,300 10,520 $67,820 $ 153,570 Degree of Completion 100% 90% 70% 35% Fabricating finished 62,000 units and transferred them to the Packaging Department. At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows: 100% 60 50
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:Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses
the weighted-average process costing method to account for costs of production in all three departments. The following information
was obtained for the Fabricating Department for the month of September.
Work in process on September 1 had 17,000 units made up of the following:
Prior department costs transferred in from
the Extruding Department
Costs added by the Fabricating Department
Direct materials
Direct labor
Direct materials
Direct labor
Manufacturing overhead
Work in process, September 1
During September, 75,000 units were transferred in from the Extruding Department at a cost of $556,250. The Fabricating Department
added the following costs:
Manufacturing overhead
Total costs added
$ 214,200
64,800
35,480
$ 314,480.
Direct materials.
Direct labor
Manufacturing overhead
Amount
$ 85,750
$ 46,000
11,300
10,520
$ 67,820
$ 153,570
Degree of
Completion
100%
90%
70%
35%
Fabricating finished 62,000 units and transferred them to the Packaging Department.
At September 30, 30,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at
September 30 was as follows:
100%
60
50
Transcribed Image Text:Required:
a. Prepare a production cost report for September using the FIFO.
Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number.
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
MERCIER MANUFACTURING
Fabricating Department
Production Cost Report-FIFO
Physical Units Total Costs
0
0
$
Prior
Department Materials
Costs
0 $
0 $
0
0 $
Labor
0
Manufacturing
Overhead
0 $
0
0
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