Prepare a cost of production summary for the month March.

Question

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Answer 1

Question

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

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Answer 2

Question

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

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Answer 3

Question

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

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Answer 4

Question

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

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Answer 5

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

Answer 6

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250

Table (2)

4) Calculate the ending work-in process:

Particulars	Units
Beginning work in process	2,000
Received from shipping	9,000
Total	11,000
Units finished	8,000
Ending work in process	3,000

Table (3)

Answer 7

Chapter 5, Problem 11P

To determine

Prepare a cost of production summary for the month March.

Answer 8

Expert Solution & Answer

Explanation of Solution

Prepare a cost of production summary for the month March.

G Inc.
Cost of production summary
Forming department
For the month ended March 31
Particulars	Amount($)	Amount($)	Amount($)
Cost of work in process, beginning of month
Cost in shaping		$8,000(1)
Cost in forming:
Materials	$500 (3)
Labor	1,000 (3)
Factory overhead	750 (3)	$2,250 (2)	$10,250
Cost of goods received from shaping during the month			36,000
Cost of production for month:
Materials		$4,000
Labor		8,000
Factory overhead		6,000	18,000
Total costs accounted for			$64,250
Unit output for month:
Finished and transferred to finished goods			8,000
Equivalent units of work-in process (3,000 units, 1/3 complete)			1,000
Total equivalent production			9,000
Unit cost for month:
Materials $[($500+$4,000)/9,000]$			$0.50
Labor $[$1,000+$8,000/9,000]$			1
Factory overhead $[$750+$6,000/9,000]$			0.75
Total			$2.25
Inventory cost:
Cost of goods finished and transferred to finished goods:
Cost in shaping $(8,000×$4)$		$32,000
Cost in forming $(8,200×$2.25)$		18,000
Total			$50,000
cost of work-in process, end of month:
Cost in shaping $(3,000×$4)$		$12,000
Cost in forming:
Materials $(3,000×1/3×$0.50)$	$500
Labor $(3,000×1/3×$1)$	1,000
Factory overhead $(3,000×1/3×$0.75)$	750	2,250	$14,250
Total production costs accounted for			$64,250

Table (1)

Working note:

1) Calculate the cost for shaping:

$Unit cost for shaping=$36,0009,000=$4Cost for shaping=$4×2,000 units=$8,000$

2) Calculate the cost in beginning work-in process:

$Beginning work-in process cost=$10,250−($4×2,000)=$10,250−$8,000=$2,250$

3) Calculation of ratio:

Particulars	A	B	$(C)= (A)(B)$	D	$(E)=(C)×(D)$
Material cost in beginning work-in process	$4,000	$18,000	22.22%	$2,250	$500
Labor cost in beginning work-in process	$8,000	$18,000	44.44%	$2,250	1,000
Factory overhead cost in beginning work in process	$6,000	$18,000	33.33%	$2,250	$750
Total	$18,000		100%		$2,250