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:

GEN COMBO FINANCIAL & MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD

18th Edition

ISBN: 9781260088830

Author: Jan Williams

Publisher: McGraw-Hill Education

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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 analyz…

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GEN COMBO FINANCIAL & MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD

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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