Process Costing System Questions: Q1. ABC Company produces one product through two stages of productions; the manufacturing and the assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the process, and DM B is added at the 75% of completion. Conversion cost is added gradually. The following is data for cost and production during 2020: Data Units DM A DM B CC Beginning inventory (60%) 20,000 $160,000 $0 $60,000 Added units 80,000 $680,000 $300,000 $435,750 Ending Inventory (80%) 25,000 Required: Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage.
Process Costing System Questions: Q1. ABC Company produces one product through two stages of productions; the manufacturing and the assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the process, and DM B is added at the 75% of completion. Conversion cost is added gradually. The following is data for cost and production during 2020: Data Units DM A DM B CC Beginning inventory (60%) 20,000 $160,000 $0 $60,000 Added units 80,000 $680,000 $300,000 $435,750 Ending Inventory (80%) 25,000 Required: Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage.
Process Costing System Questions: Q1. ABC Company produces one product through two stages of productions; the manufacturing and the assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the process, and DM B is added at the 75% of completion. Conversion cost is added gradually. The following is data for cost and production during 2020: Data Units DM A DM B CC Beginning inventory (60%) 20,000 $160,000 $0 $60,000 Added units 80,000 $680,000 $300,000 $435,750 Ending Inventory (80%) 25,000 Required: Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage.
Q1. ABC Company produces one product through two stages of productions; the manufacturing and the assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the process, and DM B is added at the 75% of completion. Conversion cost is added gradually. The following is data for cost and production during 2020:
Data
Units
DM A
DM B
CC
Beginning inventory (60%)
20,000
$160,000
$0
$60,000
Added units
80,000
$680,000
$300,000
$435,750
Ending Inventory (80%)
25,000
Required:
Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO
Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage.
Q2. ABC Company is a manufacturing company that produces biscuits covered with chocolates. The company has two stages; manufacturing stage where they add the biscuits at the beginning of the production. Then, they add chocolate when the production is ready by 60%. Second stage is the packaging stage where DM is added at the beginning of the process. The following is data of production and costs for both stages for Jan 2020 period:
Data
Units
Biscuits
Chocolate
CC
Beginning inventory (70%)
120,000
$18,000
$30,000
$8,400
Added units
600,000
$96,000
$132,000
64,620
Ending Inventory (35%)
150,000
Data
Units
DM
CC
Transferred C
Beginning inventory (50%)
75,000
$11,250
$3,000
$36,000
Added units
$91,200
$52,875
Ending Inventory (60%)
50,000
Required:
Prepare the stage report for the manufacturing and Packaging stages using, a) WA, and B) FIFO
Journalize the required entry to transfer the completed units and prepare the ledger of the manufacturing stage and Packaging stage.
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Process Costing System
Questions:
Q1. ABC Company produces one product through two stages of productions; the manufacturing and the
assembly. Two DM are added during the manufacturing stage; DM A is added at the beginning of the
process, and DMB is added at the 75% of completion. Conversion cost is added gradually. The following
is data for cost and production during 2020:
Data
Units
DM A
DM B
CC
$60.000
Beginning inventory (60%)
Added units
Ending Inventory (80%)
$160,000
$680.000
$O
$300,000
20,000
80,000
25.000
$435,750
Required:
1. Prepare the stage report for the manufacturing stage using, a) WA, and B) FIFO
2. Joumalize the required entry to transfer the completed units and prepare the ledger of the
manufacturing stage.
Q2. ABC Company is a manufacturing company that produces biscuits covered with chocolates. The
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English (UK)
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Transcribed Image Text:Activities
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Q2. ABC Company is a manufacturing company that produces biscuits covered with chocolates. The
company has two stages; manufacturing stage where they add the biscuits at the beginning of the
production. Then, they add chocolate when the production is ready by 60%. Second stage is the
packaging stage where DM is added at the beginning of the process. The following is data of production
and costs for both stages for Jan 2020 period:
Chocolate
$30.000
$132,000
Data
Units
Biscuits
CC
Beginning inventory (70%)
Added units
$8.400
64,620
120,000
$18,000
$96,000
600,000
Ending Inventory (35%)
150,000
Data
Units
DM
CC
Transferred
Beginning inventory (50%)
Added units
Ending Inventory (60%)
$11,250
$91,200
$3,000
$52,875
75,000
$36,000
50,000
Required:
1. Prepare the stage report for the manufacturing and Packaging stages using, a) WA, and B) FIFO
2. Joumalize the required entry to transfer the completed units and prepare the ledger of the
manufacturing stage and Packaging stage.
Page 1 of 2
276 words, 1,680 characters
Default Style
English (UK)
I-
WWNum1: Level 1
C םם ם
100%
Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
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