The OXO Inc. Manufactures its product in two successive departments, namely A and B. During the month of December, department A transferred to department B 20,000 units costing P24,600. Records of Department B showed for December: Units in process, December 1 Received from department A Units transferred to the storeroom Units remaining in department Cost of the work in process, December 1 Cost added during the month: Materials Labor Manufacturing overhead Investigation showed: 1. 2. 3. 5,000 20,000 19,000 6,000 P8,462.00 P8,618.40 7,760.00 7,546.60 That the work in process beginning is two-fifths completed in November. That Labor and Overhead in Department B were applied evenly the process while materials were added as follows: One-fifth at the start of the process; three-tenths when the process is one-third completed; two-fifths when the process is three-fifths completed; and the balance when the process is three-fourths completed. That one-third of the remaining units are one-fourth completed; one half is one-half completed; and the balance is two-fifths completed. Required: With supporting schedule of cost of production report compute the following: 1. EUP materials 2. Manufacturing cost per unit 3. Total cost of the units completed 4. Unit cost transferred 5. Total cost of Work-in-process end
The OXO Inc. Manufactures its product in two successive departments, namely A and B. During the month of December, department A transferred to department B 20,000 units costing P24,600. Records of Department B showed for December: Units in process, December 1 Received from department A Units transferred to the storeroom Units remaining in department Cost of the work in process, December 1 Cost added during the month: Materials Labor Manufacturing overhead Investigation showed: 1. 2. 3. 5,000 20,000 19,000 6,000 P8,462.00 P8,618.40 7,760.00 7,546.60 That the work in process beginning is two-fifths completed in November. That Labor and Overhead in Department B were applied evenly the process while materials were added as follows: One-fifth at the start of the process; three-tenths when the process is one-third completed; two-fifths when the process is three-fifths completed; and the balance when the process is three-fourths completed. That one-third of the remaining units are one-fourth completed; one half is one-half completed; and the balance is two-fifths completed. Required: With supporting schedule of cost of production report compute the following: 1. EUP materials 2. Manufacturing cost per unit 3. Total cost of the units completed 4. Unit cost transferred 5. Total cost of Work-in-process end
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:The OXO Inc. Manufactures its product in two successive departments, namely A and B. During the month of
December, department A transferred to department B 20,000 units costing P24,600.
Records of Department B showed for December:
Units in process, December 1
Received from department A
Units transferred to the storeroom
Units remaining in department
Cost of the work in process, December 1
Cost added during the month:
Materials
Labor
Manufacturing overhead
Investigation showed:
1.
2.
5,000
20,000
19,000
6,000
P8,462.00
P8,618.40
7,760.00
7,546.60
That the work in process beginning is two-fifths completed in November.
That Labor and Overhead in Department B were applied evenly the process while materials were added as
follows: One-fifth at the start of the process; three-tenths when the process is one-third completed; two-fifths
when the process is three-fifths completed; and the balance when the process is three-fourths completed.
3. That one-third of the remaining units are one-fourth completed; one half is one-half completed; and the
balance is two-fifths completed.
Required: With supporting schedule of cost of production report compute the following:
1. EUP materials
2. Manufacturing cost per unit
3. Total cost of the units completed
4. Unit cost transferred
5. Total cost of Work-in-process end
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