Process Costing QP [PDF]

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1. Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities: Beginning work in process inventory Units placed in production Units completed Ending work in process inventory



3,000 items, 1/3 complete 12,000 units 9,000 units 6,000 items, 1/2 complete



Cost of beginning work in process $2,500 Direct material costs, current $9,000 Conversion costs, current $7,700 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method PRODUCTION COST WORKSHEET Flow of production Work in process, beginning Started during period To account for Units completed Work in process, beginning Started and completed Work in process, ending



Costs Work in process, beginning Costs added during period Total costs to account for Divided by equivalent units Equivalent unit costs



Physica l Units 3,000 12,000 15,000



3,000 6,000 6,000 15,000 Totals $2,500 16,700 $19,200 $1.45



Direct Materials



6,000 6,000 12,000



Conversio n



2,000 6,000 3,000 11,000



Direct Materials



Conversio n 0 $9,000 $7,700 $9,000 $7,700 12,000 11,000 $0.75 $0.70



2. Pet Products Company uses an automated process to manufacture its pet replica



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products. For June, the company had the following activities: Beginning work in process inventory Units placed in production Units completed Ending work in process inventory



4,500 items, 1/4 complete 15,000 units 17,500 units 2,000 items, 3/4 complete



Cost of beginning work in process $5,250 Direct material costs, current $16,500 Conversion costs, current $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method



3. Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory Units placed in production Units completed Ending work in process inventory



6,000 items, 1/3 complete 10,000 units 15,000 units 1,000 items, 2/3 complete



Cost of beginning work in process $7,500 Direct material costs, current $12,500 Conversion costs, current $20,500 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method



This study source was downloaded by 100000839364709 from CourseHero.com on 07-18-2022 10:55:42 GMT -05:00



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