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AC - CostAcctg Process Costing - Production Losses

This document is a cost of production report for Hanks Inc. for the period of June 2010. It provides details on: 1) The quantities of production including beginning work-in-process inventory, units started and completed, units transferred out to finished goods, and ending work-in-process inventory. 2) The costs of production including beginning work-in-process inventory costs, current period costs, costs transferred out to finished goods, and ending work-in-process inventory costs. 3) Calculations of equivalent units of production and cost per equivalent unit to allocate overhead costs between work-in-process and finished goods inventory.

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Eloisa Joy Moredo
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75 views10 pages

AC - CostAcctg Process Costing - Production Losses

This document is a cost of production report for Hanks Inc. for the period of June 2010. It provides details on: 1) The quantities of production including beginning work-in-process inventory, units started and completed, units transferred out to finished goods, and ending work-in-process inventory. 2) The costs of production including beginning work-in-process inventory costs, current period costs, costs transferred out to finished goods, and ending work-in-process inventory costs. 3) Calculations of equivalent units of production and cost per equivalent unit to allocate overhead costs between work-in-process and finished goods inventory.

Uploaded by

Eloisa Joy Moredo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Hanks Inc.

Cost of Production Report


For the production period June 2010
Equivalent Units of
Production

Quantity Schedule Physical Units Materials


(a) Quantity to be accounted for
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

(b) Quantity accounted for


Total units Transferred out to Finished Goods 79,200 79,200
Ending WIP inventory 15,000 15,000
Normal Spoilage 4,500
Abnormal Spoilage 3,300 3,300
Units accounted for 102,000 97,500

Cost

Cost Schedule Total Materials


(c) Cost to be accounted for
Beginning WIP inventory 19,689.00 16,230.00
Current cost for the period 120,786.00 101,745.00
Cost to be accounted for 140,475.00 117,975.00
Divided by: EUP 97,500
Cost per EUP 1.21000

(d) Cost accounted for


Total Transferred Out Cost 114,840.00 95,832.00
Ending Inventory 20,850.00 18,150.00
Abnormal Spoilage 4,785.00 3,993.00
Total cost accounted for 140,475.00

Unit Cost of Units Transferred-out to Finished Goods


Equivalent Units of
Production

Conversion

79,200
11,250

3,300
93,750

Cost

Conversion

3,459.00
19,041.00
22,500.00
93,750
0.24000

19,008.00
2,700.00
792.00

1.45
Hanks Inc.
Cost of Production Report
For the production period June 2010
Equivalent Units of
Production

Quantity Schedule Physical Units Materials


(a) Quantity to be accounted for
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

(b) Quantity accounted for


Total units Transferred out to Finished Goods 79,200 79,200
Ending WIP inventory 15,000 15,000
Normal Spoilage 4,500 4,500
Abnormal Spoilage 3,300 3,300
Units accounted for 102,000 102,000

Cost

Cost Schedule Total Materials


(c) Cost to be accounted for
Beginning WIP inventory 19,689.00 16,230.00
Current cost for the period 120,786.00 101,745.00
Cost to be accounted for 140,475.00 117,975.00
Divided by: EUP 102,000
Cost per EUP 1.15662

(d) Cost accounted for


Total Transferred Out Cost before Soilage 109,741.52 91,604.12
Add: Normal Spoilage 6,235.31 5,204.78
Total Transferred out Cost 115,976.84
Ending Inventory 19,925.60 17,349.26
Abnormal Spoilage 4,572.56 3,816.84
Total cost accounted for 140,475.00

Unit Cost of Units Transferred-out to Finished Goods


Equivalent Units of
Production

Conversion

79,200
11,250
4,500
3,300
98,250

Cost

Conversion

3,459.00
19,041.00
22,500.00
98,250
0.22901

18,137.40
1,030.53

2,576.34
755.73

1.4643539898
Hanks Inc.
Cost of Production Report
For the production period June 2010
Equivalent Units of
Production

Quantity Schedule Physical Units Materials


(a) Quantity to be accounted for
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

(b) Quantity accounted for


From Beginning 12,000 -
Started and Completed 67,200 67,200
Total units Transferred out to Finished Goods 79,200
Ending WIP inventory 15,000 15,000
Normal Spoilage 4,500
Abnormal Spoilage 3,300 3,300
Units accounted for 102,000 85,500

Cost

Cost Schedule Total Materials


(c) Cost to be accounted for
Beginning WIP inventory 19,689.00 16,230.00
Current cost for the period 120,786.00 101,745.00
Cost to be accounted for 140,475.00
Divided by: EUP 85,500
Cost per EUP 1.19000

(d) Cost accounted for


Transferred out
Beginning WIP Inventory 19,689.00 16,230.00
Cost to complete 1,056.00 -
Completed Beginning WIP Inventory 20,745.00
Started and completed 94,752.00 79,968.00
Total Transferred Out Cost 115,497.00 -
Ending Inventory 20,325.00 17,850.00
Abnormal Spoilage 4,653.00 3,927.00
Total cost accounted for 140,475.00

Unit Cost of Units Transferred-out to Finished Goods


Equivalent Units of
Production

Conversion

4,800
67,200

11,250

3,300
86,550

Cost

Conversion

3,459.00
19,041.00

86,550
0.22000

3,459.00
1,056.00

14,784.00
-
2,475.00
726.00

1.4582954545
Hanks Inc.
Cost of Production Report
For the production period June 2010
Equivalent Units of
Production

Quantity Schedule Physical Units Materials


(a) Quantity to be accounted for
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

(b) Quantity accounted for


From Beginning 12,000 -
Started and Completed 67,200 67,200
Total units Transferred out to Finished Goods 79,200
Ending WIP inventory 15,000 15,000
Normal Spoilage 4,500 4,500
Abnormal Spoilage 3,300 3,300
Units accounted for 102,000 90,000

Cost

Cost Schedule Total Materials


(c) Cost to be accounted for
Beginning WIP inventory 19,689.00 16,230.00
Current cost for the period 120,786.00 101,745.00
Cost to be accounted for 140,475.00
Divided by: EUP 90,000
Cost per EUP 1.13050

(d) Cost accounted for


Transferred out
Beginning WIP Inventory 19,689.00 16,230.00
Cost to complete 1,003.81 -
Completed Beginning WIP Inventory 20,692.81
Started and completed 90,022.92 75,969.60
Total Transferred Out Cost before Spoilage 110,715.73 -
Add: Normal Spoilage 6,028.32 5,087.25
Total Transferred out Cost 116,744.05
Ending Inventory 19,310.18 16,957.50
Abnormal Spoilage 4,420.77 3,730.65
Total cost accounted for 140,475.00
Unit Cost of Units Transferred-out to Finished Goods
Equivalent Units of
Production

Conversion

4,800
67,200

11,250
4,500
3,300
91,050

Cost

Conversion

3,459.00
19,041.00

91,050
0.20913

3,459.00
1,003.81

14,053.32
-
941.07

2,352.68
690.12
1.4740410894

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