Physical Units Transferred-in costs (from Production Dept.) Direct Material Conversion Costs Beginning inventory, WIP (June 1) 90 $105,000 $0 $55,000 % of completion, beginning WIP 100% 0% 60% Transferred-in during June 150 Completed and transferred-out in June 155 Ending inventory, WIP (June 30) ??? % of completion, ending WIP 100% 20% 80% Total costs added during June $205,000 $55,000 $99,000 XYZ Co. operates two departments: Production and Assembly. This exercise focuses on the Assembly department. Direct Materials are added at the end of the process but conversion costs are added evenly during the process. Required: Using FORMULAS, prepare a worksheet to assign total costs to units completed and to units in ending work in process using weighted-average method of process costing. Rules/steps to consider: Prepare first the hand-written assignment Then, work on your Excel spreadsheet
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
|
Physical Units |
Transferred-in costs (from Production Dept.) |
Direct Material |
Conversion Costs |
|
|
Beginning inventory, WIP (June 1) |
90 |
$105,000 |
$0 |
$55,000 |
|
% of completion, beginning WIP |
100% |
0% |
60% |
|
|
Transferred-in during June |
150 |
|||
|
Completed and transferred-out in June |
155 |
|||
|
Ending inventory, WIP (June 30) |
??? |
|||
|
% of completion, ending WIP |
100% |
20% |
80% |
|
|
Total costs added during June |
$205,000 |
$55,000 |
$99,000 |
XYZ Co. operates two departments: Production and Assembly. This exercise focuses on the Assembly department. Direct Materials are added at the end of the process but conversion costs are added evenly during the process. Required: Using FORMULAS, prepare a worksheet to assign total costs to units completed and to units in ending work in process using weighted-average method of
Rules/steps to consider:
- Prepare first the hand-written assignment
- Then, work on your Excel spreadsheet
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