Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filtering. New material is added only in the Mixing Department. The following Information is given for the Processing Department for August. TI uses process costing. WIP Inventory Processing Department: August 1 Quantity (68% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 1 Current production and costs (August) Units started Current costs Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total current cost: August WIP Inventory Processing Department (August 31) Quantity (28% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 31 Flow of units: Units to be accounted for. Beginning WP inventory Units started this period Total units to account for Units accounted for. Required: a. Complete the production cost report for August using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Completed and transferred out Unitsin ending inventory Mixing Processing Total units accounted for Flow of costs: Costs to be accounted for: Costs in beginning WP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Processing Costs accounted for: Costs assigned to units transferred out Costs of ending WP inventory Total costs accounted for Physical Units Total 30,000 units $ 38,850 13,692 $ 52,542 77,000 units Mixing Department $ 88,988 57,100 $ 146,000 15,000 units ?? ?? ?? Equivalent Units Processing Department Processing Mixing Department Department
Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filtering. New material is added only in the Mixing Department. The following Information is given for the Processing Department for August. TI uses process costing. WIP Inventory Processing Department: August 1 Quantity (68% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 1 Current production and costs (August) Units started Current costs Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total current cost: August WIP Inventory Processing Department (August 31) Quantity (28% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 31 Flow of units: Units to be accounted for. Beginning WP inventory Units started this period Total units to account for Units accounted for. Required: a. Complete the production cost report for August using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Completed and transferred out Unitsin ending inventory Mixing Processing Total units accounted for Flow of costs: Costs to be accounted for: Costs in beginning WP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Processing Costs accounted for: Costs assigned to units transferred out Costs of ending WP inventory Total costs accounted for Physical Units Total 30,000 units $ 38,850 13,692 $ 52,542 77,000 units Mixing Department $ 88,988 57,100 $ 146,000 15,000 units ?? ?? ?? Equivalent Units Processing Department Processing Mixing Department Department
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filtering. New material is added only in
the Mixing Department. The following Information is given for the Processing Department for August. TI uses process costing.
WIP Inventory Processing Department: August 1
Quantity (68% complete)
Transferred-in costs (from Mixing Department)
Conversion costs (Processing Department)
Total WIP cost: August 1
Current production and costs (August)
Units started
Current costs
Transferred-in costs (from Mixing Department)
Conversion costs (Processing Department)
Total current cost: August
WIP Inventory Processing Department (August 31)
Quantity (28% complete)
Transferred-in costs (from Mixing Department)
Conversion costs (Processing Department)
Total WIP cost: August 31
Flow of units:
Units to be accounted for.
Beginning WP inventory
Units started this period
Total units to account for
Units accounted for.
Required:
a. Complete the production cost report for August using the weighted-average method.
Note: Round "Cost per equivalent unit" to 2 decimal places.
Completed and transferred out
Unitsin ending inventory
Mixing
Processing
Total units accounted for
Flow of costs:
Costs to be accounted for:
Costs in beginning WP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Mixing
Processing
Costs accounted for:
Costs assigned to units transferred out
Costs of ending WP inventory
Total costs accounted for
Physical Units
Total
30,000 units
$ 38,850
13,692
$ 52,542
77,000 units
Mixing
Department
$ 88,988
57,100
$ 146,000
15,000 units
??
??
??
Equivalent Units
Processing
Department
Processing
Mixing
Department Department
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