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PROCESS COSTING
( COST OF PRODUCTION REPORT)
Q No.1
Information given to Goods in process in the Z DEPARTMENT of Aramco company.
Material cost
Labor cost
Overhead cost
75,000
53,700
35,800
Production information:
Units put into process during the month------------------------------------------20,000
Units completed and transferred to Holder department-----------------------16,000
Units in process August 31( 75% complete as to Material and 60%
complete as to labor and overhead)-----------------------------------------------4000
Instruction: Prepare Cost of Production Report for the month of August
Q No.2
Information given to Goods in process in the T DEPARTMENT of Pepsi company.
Material cost
Labor cost
Overhead cost
250,000
175600
150,000
Production information:
Units put into process during the month------------------------------------------45,000
Units completed and transferred to M department-----------------------35,000
Units in process August 31( 35% complete as to Material and 40%
complete as to labor and overhead)-----------------------------------------------10,000
Instruction: Prepare Cost of Production Report for the month of September.
Rs. 15,000
75,000
53,700
35,800
Production information:
Units in process August 1, (80% complete as to Material and
70% complete as to Labour and overhead) -------------------------------------5000 UNITS
Units put into process during the month------------------------------------------20,000
Units completed and transferred to Holder department-----------------------16,000
Units in process August 31( 75% complete as to Material and 60%
complete as to labor and overhead)-----------------------------------------------9000
Instruction: Prepare Cost of Production Report for the month of August
Q No.4
Information given to Work in process in the A DEPARTMENT of Caltex company.
Beginning Inventory
Material cost
Labor cost
Overhead cost (120% of Direct labor)
Rs.
25,000
175,000
67500
????
Production information:
Units in process September 1, (40% complete as to Material and
60% complete as to Labour and overhead) -------------------------------------7500 UNITS
Units put into process during the month------------------------------------------25,000
Units completed and transferred to Holder department-----------------------30,000
Units in process August 31( 35% complete as to Material and 60%
complete as to labor and overhead)-----------------------------------------------2500
Instruction: Prepare Cost of Production Report for the month of September.
Q No.5
Information given to Goods in process in the B DEPARTMENT of Shell company.
Beginning Inventory
Material cost
Labor cost
Overhead cost
Rs. 325,000
865,400
600,000
500,000
Production information:
Units in process March 1, (20% complete as to Material and
35% complete as to Labour and overhead) -------------------------------125000 UNITS
Units put into process during the month------------------------------------ 320,000
Units completed and transferred to Holder department--------------------375,000
Units in process March 31(25% complete as to Material and 30%
complete as to labor and overhead)-------------------------------------------70,000
Instruction: Prepare Cost of Production Report for the month of March
Rs.588,000
Rs.472,500
Rs.1500
2000
1000
4500
Opening work in process 800 units ( 40% complete as to material and 25% complete as to
conversion)
Units started in process
Cost added by the department
Material
Labor
FOH
5000
Rs.37500
Rs.55000
Rs.27500
Q No.8
The healthy Foods corporation presented following data for the month just ended.
Units
Work-in-process, Jan.1
Work-in-process, Jan 30
20,000
15000
Percentage of completion
Material
Conversion
80%
60%
70%
30%
During the month the company started 120,000 units of material in production.
Required:
Compute Equivalent production units under (1) FIFO Method (2) Weighted average method
Q No.9
Energy resources company refines a variety of petrochemical products. The following data
are from the firms record.
Work in process Nov.1
Material
Conversion
2,000,000 gallons
90% complete
60% complete
950,000 gallons
240,000 gallons
80% complete
60% complete
Required:
Compute Equivalent production units under (1) FIFO Method (2) Weighted average method
135,000 units
420,000 units
Rs.588,000
Rs.472,500
Q No.11
Beginning units in process (85% direct material and 45% conversion costs)
Units transferred in during the period
105,000 units
520,000 units
Rs.688,000
Rs.872,500
Q No.12
Beginning units in process (100% direct material and 50% conversion costs)
Units transferred in during the period
Cost transferred in this period
Work-in-process inventory-beginning
Cost transferred in
Material
Labor
Factory overhead
90,000 units
320,000 units
Rs.588,000
Rs. 89,000
148500
75,000
60,000
Labour Costing
Q No.1
Based on the data shown below, you are required to calculate the remuneration of each
employee, as determined by each of the following methods:
100% bonus scheme, where the employee receives a bonus in proportion of the time
saved to the time allowed:
Name of employee
Units produced
Time allowed in minutes per unit
Time taken in hours
Rate per hour
Salmon
270
10
40
$1.25
Material Costing
Q No.1
The inventory data relating to an industry is as under:
Opening balance Jan.1.2003
800 units @ Rs.5
Received Feb. 2003
400 units @ Rs. 5.5
Issued March
500
Received April
200 units @ Rs.6
Issued May
400
Issued June
100
Other cost record show:
Direct labor
Rs.6000
FOH
4500
1000 units were manufactured and sold at 25% above cost
Required:
(a) Ending raw material inventory by FIFO METHOD
(b) Raw material consumed
(c) Cost of goods manufactured (d)Gross profit
Roach
200
15
38
$1.05
Pike
220
12
36
$1.2