Terminal Industries (Tl) produces a product using three departments: Mixing. Processing, and Filtering. New material is added onlythe Mixing Department. The following information is given for the Processing Department for August. Tl uses process costing.WIP Inventory Processing Department: August 1Quantity (60% complete)Transferred-in costs (from Mixing Department)Conversion costs (Processing Department)Total WIP cost: August 1Current production and costs (August)Units startedCurrent costsTransferred-in costs (from Mixing Department)Conversion costs (Processing Department)Total current cost: AugustWIP Inventory Processing Department (August 31)Quantity (20% complete)Transferred-in costs (from Mixing Department)Conversion costs (Processing Department)Total WIP cost: August 31Flow of units:Units to be accounted for:Beginning WIP inventoryUnits started this periodTotal units to account forUnits accounted for:Completed and transferred outUnits in ending inventoryMissingProcessingRequired:a. Complete the production cost report for August using the weighted-average method.Note: Round "Cost per equivalent unit" to 2 decimal places.Total units accounted forFlow of costs:Costs to be accounted for:Costs in beginning WIP inventoryCurrent period costsTotal costs to be accounted forCost per equivalent unitMixingProcessingCosts accounted for:Costs assigned to units transferred outCosts of ending WIP inventoryTotal costs accounted forPhysical Units$$30,50077,500108,000Total0MixingDepartmentMixingDepartment0 SOS30,500 units$ 40,09013,712$ 53,80277,500 units$90,50058,100$ 148,600Equivalent Units015,500??????unitsProcessingDepartmentProcessingDepartment0 $0 $00

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Description: Terminal Industries (Tl) produces a product using three departments: Mixing. Processing, and Filtering. New material is added onlythe Mixing Department. The following information is given for the Processing Department for August. Tl uses process cos

A production report is a consolidated report that presents the information about the physical flow…

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Terminal Industries (TI) produces a product using three departments: Mixing. Processing, and Filtering. New material is added onl the Mixing Department. The following information is given for the Processing Department for August. Tl uses process costing. WIP Inventory Processing Department: August 1 Quantity (60% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 30,500 units $ 40,090 13,712 $ 53 892

Terminal Industries (TI) produces a product using three departments: Mixing. Processing, and Filtering. New material is added onl the Mixing Department. The following information is given for the Processing Department for August. Tl uses process costing. WIP Inventory Processing Department: August 1 Quantity (60% complete) Transferred-in costs (from Mixing Department) Conversion costs (Processing Department) Total WIP cost: August 30,500 units $ 40,090 13,712 $ 53 892

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10PA: Production information shows these costs and units for the smoothing department in August. All...

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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

Terminal Industries (Tl) produces a product using three departments: Mixing. Processing, and Filtering. New material is added only
the Mixing Department. The following information is given for the Processing Department for August. Tl uses process costing.
WIP Inventory Processing Department: August 1
Quantity (60% 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 (20% 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 WIP inventory
Units started this period
Total units to account for
Units accounted for:
Completed and transferred out
Units in ending inventory
Missing
Processing
Required:
a. Complete the production cost report for August using the weighted-average method.
Note: Round "Cost per equivalent unit" to 2 decimal places.
Total units accounted for
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP 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 WIP inventory
Total costs accounted for
Physical Units
$
$
30,500
77,500
108,000
Total
0
Mixing
Department
Mixing
Department
0 S
OS
30,500 units
$ 40,090
13,712
$ 53,802
77,500 units
$90,500
58,100
$ 148,600
Equivalent Units
0
15,500
??
??
??
units
Processing
Department
Processing
Department
0 $
0 $
0
0

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