a. Total cost of units in process at the end in Department 1b. Total cost of units transferred out to store room in Department 2c. Total cost of units transferred out in Department 1d. Total cost of units in process at the end in Department 2 The XYZ Corporation has two departments in its operations, namely Department I and II.Inventories, cost, and production data for the month of June 2008 are as follows:QuantityDepartment IIn process, beginningDepartment II5,0006,000Work to be done1/32/5Started in process44,00040,000?Transferred out37,000In process endStage of completion?3/57/8CostIn process, beginningP5, 200P10,685Added this monthMaterials19,80034,799Labor14,2002,60027,47018,450OverheadConversion cost are applied evenly in all departments. Materials are applied as follows:Department 1- all at the start of the process: Department Il- 30% at the start of the process, 40%when process is one half completed, 30% at the end of the process.

What is meant by Process Costing? Process costing is a method of cost accounting, which is used…

The XYZ Corporation has two departments in its operations, namely Department I and II. Inventories, cost, and production data for the month of June 2008 are as follows: Quantity In process, beginning Department I 6,000 Department II 5,000 Work to be done 1/3 2/5 Started in process 44,000 Transferred out 40,000 37,000 ? In process end Stage of completion ? 3/5 7/8 Cost In process, beginning P5, 200 P10,685 Added this month Materials 19,800 34,799 Labor 14,200 2,600 27,470 18,450 Overhead Conversion cost are applied evenly in all departments. Materials are applied as follows: Department 1- all at the start of the process: Department IIl- 30% at the start of the process, 40% when process is one half completed, 30% at the end of the process.

The XYZ Corporation has two departments in its operations, namely Department I and II. Inventories, cost, and production data for the month of June 2008 are as follows: Quantity In process, beginning Department I 6,000 Department II 5,000 Work to be done 1/3 2/5 Started in process 44,000 Transferred out 40,000 37,000 ? In process end Stage of completion ? 3/5 7/8 Cost In process, beginning P5, 200 P10,685 Added this month Materials 19,800 34,799 Labor 14,200 2,600 27,470 18,450 Overhead Conversion cost are applied evenly in all departments. Materials are applied as follows: Department 1- all at the start of the process: Department IIl- 30% at the start of the process, 40% when process is one half completed, 30% at the end of the process.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

a. Total cost of units in process at the end in Department 1

b. Total cost of units transferred out to store room in Department 2

c. Total cost of units transferred out in Department 1

d. Total cost of units in process at the end in Department 2

The XYZ Corporation has two departments in its operations, namely Department I and II.
Inventories, cost, and production data for the month of June 2008 are as follows:
Quantity
Department I
In process, beginning
Department II
5,000
6,000
Work to be done
1/3
2/5
Started in process
44,000
40,000
?
Transferred out
37,000
In process end
Stage of completion
?
3/5
7/8
Cost
In process, beginning
P5, 200
P10,685
Added this month
Materials
19,800
34,799
Labor
14,200
2,600
27,470
18,450
Overhead
Conversion cost are applied evenly in all departments. Materials are applied as follows:
Department 1- all at the start of the process: Department Il- 30% at the start of the process, 40%
when process is one half completed, 30% at the end of the process.

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Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 6,000 units, 25% completed Direct materials, 141,000 units @ $2.1 Direct labor 15,300 To Finished Goods, 138,000 units 296,100 194,700 75,765 ? Factory overhead Bal. 2 units, 65% completed Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount box does not require an entry, leave it blank. Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Fquivalent
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