To determine Prepare the production cost report for the Motor Department of Company S for March. Explanation Process Costing : It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced. Prepare the production cost report for the Motor Department of Company S for March. Calculate the physical flow of goods: Particulars Total Units Inputs: Beginning work in process 0 Manufacturing of dishwashers during the month March 4,000 Dishwashers to account for during the month March 4,000 Outputs: Units completed 4,000 Ending work in process 0 Dishwashers accounted for during the month March 4,000 (Table 1) Calculate the equivalent units: Particulars Total units Direct Materials Conversion Based on monthly input: Beginning WIP 0 0 Units started 4,000 4,000 Equivalent units of input 4,000 4,000 Based on monthly output: Units completed 4,000 4,000 Ending WIP 0 0 Equivalent units of output 4,000 4,000 (Table 2) Calculate the cost per equivalent unit: Particulars Total Unit Cost Direct Materials Conversion Costs Costs from Tub Department $160,000 $40,000 Costs from Motor Department 80,000 32,000 Total (A) $240,000 $72,000 Divide by equivalent units (B) ÷ 4,000 ÷ 4,000 Costs per equivalent unit (A÷B) $78.00 $ 60.00 $ 18.00 (Table 3) Calculate the total cost assignment:

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ISBN: 9781259692406

Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello

Publisher: McGraw-Hill Education

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Chapter 18, Problem 3AP

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Prepare the production cost report for the Motor Department of Company S for March.

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Five I + Beginning Work-in-Process Inventory Cost of Goods Manufactured Cost of Goods Sold Direct Labor Direct Materials Used Ending Work-in-Process Inventory Finished Goods Inventory 4 of 35 > manufactured. Use the followin Process Inventory, $32,800; an Total Manufacturing Costs Incurred during Period Total Manufacturing Costs to Account For

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Requirement 1. For a manufacturing company, identify the following as either a product cost or a period cost: Period cost Product cost a. Depreciation on plant equipment Depreciation on salespersons' automobiles Insurance on plant building Marketing manager's salary Direct materials used Manufacturing overhead g. Electricity bill for human resources office h. Production employee wages

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Financial & Managerial Accounting

Ch. 18 - Prob. 1STQ Ch. 18 - 2. Which of the following businesses would most...Ch. 18 - 3. Nut House manufactures and sells jars of peanut...Ch. 18 - 4. Indicate which of the following phrases...Ch. 18 - 5. A production cost report contains which of the...Ch. 18 - 1. Why would a company use multiple cost...Ch. 18 - 2. What factors should be taken into account in...Ch. 18 - 3. Rodeo Drive Jewelers makes custom jewelry for...Ch. 18 - 4. Describe at least two products or production...Ch. 18 - 5. What are the four significant parts of the...

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