-PROCESS COSTING- XYZ Inc. manufactures an antacid product that passes through two departments. Data for May for the first department are as follows: GAL. 80,000 MAT'LS LABOR $ 69,300 OH $ 28,000 $ 45,000 WIP, May1 Gallons started in 760,000 process Gallons transferred 790,000 50,000 out WIP, May 31 Cost added during May 907,200 370,000 592,000 The ending WIP inventory was 80% complete as to materials and 75% complete as to processing. Required: 1. Assume that the company uses the weighted-average method of accounting for units and cost. Prepare a quantity schedule and a computation of equivalent units for May's activity. 2. Determine the total and unit cost for May.
-PROCESS COSTING- XYZ Inc. manufactures an antacid product that passes through two departments. Data for May for the first department are as follows: GAL. 80,000 MAT'LS LABOR $ 69,300 OH $ 28,000 $ 45,000 WIP, May1 Gallons started in 760,000 process Gallons transferred 790,000 50,000 out WIP, May 31 Cost added during May 907,200 370,000 592,000 The ending WIP inventory was 80% complete as to materials and 75% complete as to processing. Required: 1. Assume that the company uses the weighted-average method of accounting for units and cost. Prepare a quantity schedule and a computation of equivalent units for May's activity. 2. Determine the total and unit cost for May.
-PROCESS COSTING- XYZ Inc. manufactures an antacid product that passes through two departments. Data for May for the first department are as follows: GAL. 80,000 MAT'LS LABOR $ 69,300 OH $ 28,000 $ 45,000 WIP, May1 Gallons started in 760,000 process Gallons transferred 790,000 50,000 out WIP, May 31 Cost added during May 907,200 370,000 592,000 The ending WIP inventory was 80% complete as to materials and 75% complete as to processing. Required: 1. Assume that the company uses the weighted-average method of accounting for units and cost. Prepare a quantity schedule and a computation of equivalent units for May's activity. 2. Determine the total and unit cost for May.
Transcribed Image Text:-PROCESS COSTING-
XYZ Inc. manufactures an antacid product that passes through two departments.
Data for May for the first department are as follows:
GAL.
80,000
МАT' LS
$ 69,300
LABOR
$ 28,000
OH
$ 45,000
WIP, May1
Gallons started in
760,000
process
Gallons transferred
out
790,000
50,000
WIP, May 31
Cost added during May
907,200
370,000
592,000
The ending WIP inventory was 80% complete as to materials and 75% complete as
to processing.
Required:
1. Assume that the company uses the weighted-average method of accounting
for units and cost. Prepare a quantity schedule and a computation of
equivalent units for May's activity.
2. Determine the total and unit cost for May.
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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