Pearce Company uses the FIFO method in its process costing system. The Mixing Department started the month with 400 units in process that were 10% complete, started in production 1,400 units, and transfe to the finished goods storage area. All materials are added at the beginning of the process and conversion costs occur evenly. The units in process at the end of the month are 65% complete with respect to con The department incurred the following costs: (Click the icon to view the costs.) Read the requirements. COSTS Costs to account for: Beginning work-in-process Costs to complete beginning WIP Total costs to account for COSTS Costs accounted for: Beginning work-in-process Costs to complete beginning WIP Total costs for beginning WIP Direct Materials Started and completed Transferred to finished goods 840 2,940 3780 2940 1700 1.73 Direct Materials Conversion Costs added during the period Divided by: EUP this period Cost per equivalent unit 17A. Determine the cost to be transferred to the next department. Complete the partial cost of production report through the calculation of "Transferred to finished goods." (Complete all input fields. Enter a "0" for any zero balances. Abbreviations used: WIP = Work in Process.) Pearce Company Production Cost Report - Mixing Department (partial) 840 0 Costs Total Costs 1,400 3972 5372 3972 1955 2.03 Conversion Costs 2240 6912 1400 9152 Total Costs Cost per Unit 2240 Data table Direct Materials Conversion Costs Total Beginning WIP $ $ Print Added this month 840 $ 1,400 2,240 $ Done 2,940 $ 3,972 6,912 S Total 3,780 5,372 9,152 - - Х
Pearce Company uses the FIFO method in its process costing system. The Mixing Department started the month with 400 units in process that were 10% complete, started in production 1,400 units, and transfe to the finished goods storage area. All materials are added at the beginning of the process and conversion costs occur evenly. The units in process at the end of the month are 65% complete with respect to con The department incurred the following costs: (Click the icon to view the costs.) Read the requirements. COSTS Costs to account for: Beginning work-in-process Costs to complete beginning WIP Total costs to account for COSTS Costs accounted for: Beginning work-in-process Costs to complete beginning WIP Total costs for beginning WIP Direct Materials Started and completed Transferred to finished goods 840 2,940 3780 2940 1700 1.73 Direct Materials Conversion Costs added during the period Divided by: EUP this period Cost per equivalent unit 17A. Determine the cost to be transferred to the next department. Complete the partial cost of production report through the calculation of "Transferred to finished goods." (Complete all input fields. Enter a "0" for any zero balances. Abbreviations used: WIP = Work in Process.) Pearce Company Production Cost Report - Mixing Department (partial) 840 0 Costs Total Costs 1,400 3972 5372 3972 1955 2.03 Conversion Costs 2240 6912 1400 9152 Total Costs Cost per Unit 2240 Data table Direct Materials Conversion Costs Total Beginning WIP $ $ Print Added this month 840 $ 1,400 2,240 $ Done 2,940 $ 3,972 6,912 S Total 3,780 5,372 9,152 - - Х
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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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Need 17A answered
Transcribed Image Text:Pearce Company uses the FIFO method in its process costing system. The Mixing Department started the month with 400 units in process that were 10% complete, started in production 1,400 units, and transferred 1,500 units
to the finished goods storage area. All materials are added at the beginning of the process and conversion costs occur evenly. The units in process at the end of the month are 65% complete with respect to conversion costs.
The department incurred the following costs:
(Click the icon to view the costs.)
Read the requirements.
COSTS
Costs to account for:
Beginning work-in-process
Costs to complete beginning WIP
Total costs to account for
COSTS
Costs accounted for:
Direct
Materials
Beginning work-in-process
Costs to complete beginning WIP
Total costs for beginning WIP
840
2,940
3780
Started and completed
Transferred to finished goods
2940
1700
1.73
Costs added during the period
Divided by: EUP this period
Cost per equivalent unit
17A. Determine the cost to be transferred to the next department.
Complete the partial cost f production report through the calculation of "Transferred to finished goods." (Complete all input fields. Enter a "0" for any zero balances. Abbreviations used: WIP = Work in Process.)
Conversion
Costs
Direct
Materials
1,400
3972
5372
Pearce Company
Production Cost Report - Mixing Department (partial)
840
0
3972
1955
2.03
Conversion
Costs
Total Costs
1400
2240
6912
9152
Total Costs
Cost per
Unit
2240
Data table
Direct Materials
Conversion Costs
Total
Beginning WIP
$
$
Print
Added this month
840 $
1,400
2,240 $
Done
2,940 $
3,972
6,912 $
Total
3,780
5,372
9,152
- X
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Step 1
Manufacturers make products, but some products require two or three processes to complete. This type of manufacturing unit should use the process costing system to know the cost of production in each process and the percentage of production.
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