Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Department A Beginning Inventories: Units in BWIP 5,000 Costs of beginning WIP (BWIP) Direct materials $10,000 Conversion costs $6,900 Current production (in November): Units started 25,000 Units transferred out 28,000 Costs (in November): Direct materials $57,800 Conversion costs $95,220 Additional Cost information: Unit cost for Department A $5.54 Cost of EWIP $8,870 Cost to finish units $16,632.60 1. Using the FIFO method, complete a production report below for Department A. Seacrest Company--Department A Production Report For the Month of November Units to account for: Units in BWIP Units started in November Total units to account for Units completed and transferred out: Started and completed From BWIP Units in EWIP Total units accounted for 2. Using the FIFO method, complete a cost schedule for Department A. Hint: remember "Total costs to account for" and Total costs accounted for" ideally should equal exactly. In reality, due to rounding, it is often close but not exact. The two values should be off by about $1. Seacrest Company--Department A Cost Schedule For the Month of November Costs to account for: Costs of BWIP Costs incurred during November Total costs to account for Costs accounted for: From prior period (Costs of BWIP) From current period (Cost to finish units) Costs of units started and completed Hint: number of units started and completed at what cost per unit? Costs of EWIP Total costs accounted for The total cost to account for and the total costs accounted for should be off by about $1
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Department A Beginning Inventories: Units in BWIP 5,000 Costs of beginning WIP (BWIP) Direct materials $10,000 Conversion costs $6,900 Current production (in November): Units started 25,000 Units transferred out 28,000 Costs (in November): Direct materials $57,800 Conversion costs $95,220 Additional Cost information: Unit cost for Department A $5.54 Cost of EWIP $8,870 Cost to finish units $16,632.60 1. Using the FIFO method, complete a production report below for Department A. Seacrest Company--Department A Production Report For the Month of November Units to account for: Units in BWIP Units started in November Total units to account for Units completed and transferred out: Started and completed From BWIP Units in EWIP Total units accounted for 2. Using the FIFO method, complete a cost schedule for Department A. Hint: remember "Total costs to account for" and Total costs accounted for" ideally should equal exactly. In reality, due to rounding, it is often close but not exact. The two values should be off by about $1. Seacrest Company--Department A Cost Schedule For the Month of November Costs to account for: Costs of BWIP Costs incurred during November Total costs to account for Costs accounted for: From prior period (Costs of BWIP) From current period (Cost to finish units) Costs of units started and completed Hint: number of units started and completed at what cost per unit? Costs of EWIP Total costs accounted for The total cost to account for and the total costs accounted for should be off by about $1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Question
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As
work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity
and costs for November:
Department A
Beginning Inventories:
Units in BWIP 5,000
Costs of beginning WIP (BWIP)
Direct materials $10,000
Conversion costs $6,900
Current production (in November):
Units started 25,000
Units transferred out 28,000
Costs (in November):
Direct materials $57,800
Conversion costs $95,220
Additional Cost information:
Unit cost for Department A $5.54
Cost of EWIP $8,870
Cost to finish units $16,632.60
1. Using the FIFO method, complete a production report below for Department A.
Seacrest Company--Department A
Production Report
For the Month of November
Units to account for:
Units in BWIP
Units started in November
Total units to account for
Units completed and transferred out:
Started and completed
From BWIP
Units in EWIP
Total units accounted for
2. Using the FIFO method, complete a cost schedule for Department A. Hint: remember "Total costs to account for" and Total costs
accounted for" ideally should equal exactly. In reality, due to rounding, it is often close but not exact. The two values
should be off by about $1.
Seacrest Company--Department A
Cost Schedule
For the Month of November
Costs to account for:
Costs of BWIP
Costs incurred during November
Total costs to account for
Costs accounted for:
From prior period (Costs of BWIP)
From current period (Cost to finish units)
Costs of units started and completed Hint: number of units started and completed at what cost per unit?
Costs of EWIP
Total costs accounted for
The total cost to account for and the total costs accounted for should be off by about $1
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