- The group members presented on process costing and differences between job order costing and process costing. Job order costing tracks costs by individual jobs while process costing accumulates costs by department for mass produced identical units.
- Weighted average and FIFO methods were discussed for assigning costs in process costing. Cost reconciliation reports track costs through work in process and finished goods accounts.
- Questions provided examples of process costing data to prepare journal entries and cost reconciliation reports tracking materials, labor, and overhead costs through departments.
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
Process costing explained with examples free of cost .It is for students of managerial accounting ,read this to quickly go through process costing.
http://www.brightscholarships.com
Twitter @scholarshipskys
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
ACG 2071 Managerial Accounting Process Costing Systems .docxbobbywlane695641
ACG 2071 Managerial Accounting
Process Costing Systems
Minicase
PROCESS COSTING PROBLEM
Spectre Chemicals produces Zaloff in a two department process. Information on the two
departments for March and April, 2011 are as follows:
March 2011:
Department 1: The company had beginning inventory of 6,000 units, 40% completed with a
cost of $45,000. During the month, the department transferred in 22,000 units of the direct
materials with a cost of $10 per unit. Ending inventory was 7,000 units, 30% completed.
Direct labor is $310,500 and factory overhead is $103,500.
Department 2: The company had beginning inventory of 5,000 units, 70% completed with a
cost of $80,000. During the month, direct labor was $175,000 and factory overhead was
$87,500. Ending inventory was 10,000 units, 50% completed.
April 2011:
Department 1: During the month, the department transferred in 20,000 units of the direct
materials with a cost of $11 per unit. Direct labor is $209,000 and factory overhead is
$104,500. Ending inventory is 10,000 units 60% completed.
Department 2: The company had beginning inventory of 5,000 units, 70% completed with a
cost of $80,000. During the month, direct labor is $175,000 and factory overhead is
$87,500.
Required:
Compute the Equivalent Units of Production, Material costs, and Conversion costs for each
department for March and April, 2011.
Complete the attached chart – one for each department and each month
Prepare a cost of production report for March and April 2011.
ACG 2071
Process Cost Systems
Created by: M. Mari
Fall 2009-1
Page 1 of 13
Process Manufacturing
Is the mass production of products in a continuous flow
of steps
Products pass through a series of sequential processes
Each process is identified a separate production,
department, workstation, or work center.
With the exception of the first process or department,
each receives the output from the prior department as
a partially processed product.
Depending on the nature of the process, a company
applies direct labor, overhead, and additional direct
materials to move the product toward completion.
Process Cost System
Assigns direct materials, direct labor, and overhead
to specific processes.
Costs are allocated by department rather than jobs
Manufacturing costs are allocated to products based
on units of production
Manufacturing costs are accumulated and transferred
by department
The total costs associated with each process are then
divided by the number of units passing through that
process to determine the cost per equivalent units
for that process
ACG 2071
Process Cost Systems
Created by: M. Mari
Fall 2009-1
Page 2 of 13
To understand how costs are allocated, first we must decide
how the costs are accumulated. One method is First in, First
out method.
Beverage Production
Costs flow fr.
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
ACG 2071 Managerial Accounting Process Costing Systems .docxbobbywlane695641
ACG 2071 Managerial Accounting
Process Costing Systems
Minicase
PROCESS COSTING PROBLEM
Spectre Chemicals produces Zaloff in a two department process. Information on the two
departments for March and April, 2011 are as follows:
March 2011:
Department 1: The company had beginning inventory of 6,000 units, 40% completed with a
cost of $45,000. During the month, the department transferred in 22,000 units of the direct
materials with a cost of $10 per unit. Ending inventory was 7,000 units, 30% completed.
Direct labor is $310,500 and factory overhead is $103,500.
Department 2: The company had beginning inventory of 5,000 units, 70% completed with a
cost of $80,000. During the month, direct labor was $175,000 and factory overhead was
$87,500. Ending inventory was 10,000 units, 50% completed.
April 2011:
Department 1: During the month, the department transferred in 20,000 units of the direct
materials with a cost of $11 per unit. Direct labor is $209,000 and factory overhead is
$104,500. Ending inventory is 10,000 units 60% completed.
Department 2: The company had beginning inventory of 5,000 units, 70% completed with a
cost of $80,000. During the month, direct labor is $175,000 and factory overhead is
$87,500.
Required:
Compute the Equivalent Units of Production, Material costs, and Conversion costs for each
department for March and April, 2011.
Complete the attached chart – one for each department and each month
Prepare a cost of production report for March and April 2011.
ACG 2071
Process Cost Systems
Created by: M. Mari
Fall 2009-1
Page 1 of 13
Process Manufacturing
Is the mass production of products in a continuous flow
of steps
Products pass through a series of sequential processes
Each process is identified a separate production,
department, workstation, or work center.
With the exception of the first process or department,
each receives the output from the prior department as
a partially processed product.
Depending on the nature of the process, a company
applies direct labor, overhead, and additional direct
materials to move the product toward completion.
Process Cost System
Assigns direct materials, direct labor, and overhead
to specific processes.
Costs are allocated by department rather than jobs
Manufacturing costs are allocated to products based
on units of production
Manufacturing costs are accumulated and transferred
by department
The total costs associated with each process are then
divided by the number of units passing through that
process to determine the cost per equivalent units
for that process
ACG 2071
Process Cost Systems
Created by: M. Mari
Fall 2009-1
Page 2 of 13
To understand how costs are allocated, first we must decide
how the costs are accumulated. One method is First in, First
out method.
Beverage Production
Costs flow fr.
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
3. Memory boards and chips used in assembling computers.
4. Depreciation on the factory equipment.
5. Salaries for assembly-line quality control inspectors.
6. Sales commissions paid to sell laptop computers.
ACC 560 MART Achievement Education--acc560mart.comshanaabe85
FOR MORE CLASSES VISIT
www.acc560mart.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers
ACC 560 MART Redefined Education--acc560mart.comclaric186
FOR MORE CLASSES VISIT
www.acc560mart.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
3. Memory boards and chips used in assembling computers.
4. Depreciation on the factory equipment.
5. Salaries for assembly-line quality c
For more classes visit
www.snaptutorial.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
For more classes visit
www.snaptutorial.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
ACC 560 Effective Communication - tutorialrank.comBartholomew4
For more course tutorials visit
www.tutorialrank.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
ACC 560 HELP Redefined Education--acc560help.comclaric227
FOR MORE CLASSES VISIT
www.acc560help.com
ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
5. Job Order Costing:
Job order costing or job costing is a system for assigning
manufacturing costs to an individual product or batches of products. Generally,
the job order costing system is used only when the products manufactured are
sufficiently different from each other.
Process Costing:
Process costing is a term used in cost accounting to describe one method for
collecting and assigning manufacturing costs to the units produced. Processing
cost is used when nearly identical units are mass produced.
6. •Both systems assign material, labor, and
overhead costs to products and they provide
a mechanism for computing unit product
costs.
• Both systems use the same manufacturing
accounts, including Manufacturing Overhead,
Raw Materials, Work in Process, and Finished
Goods.
• The flow of costs through the manufacturing
accounts is basically the same in both
systems.
Similarities Between Job-Order and Process Costing
8. Differences Between Job-Order and Process Costing
Process costing:
Job Order Costing Process costing
1. Many different jobs are worked
on during each period, with
each job having different
production requirements.
1. A single product is produced
either on a continuous basis or
for long periods of time. All
units of products are identical.
2. Costs are accumulated by
individual job.
2. Costs are accumulated by
department.
3. Unit costs are computed by job
on the job cost sheet.
3. Unit costs are computed by
department.
12. ***
***
***
***
***
***
***
***
***
• Calculation of Equivalent units of Production:
Unit Completed
transferred to the next
department
+
% of completion of ending
w/p in total EU
Material Labor Manufacturing
Overhead
13. • Calculation of Cost per EU:
Material
***
***
***
***
***
Labor
***
***
***
***
***
Manufacturing
Overhead
***
***
***
***
***
Cost of Beginning Inventory
+
Cost Added during
Production
a) Total Cost
a) Equivalent Unit of
production
c) Cost per Equivalent
unit (a/b)
16. Question -1:
Superior micro Products uses the weighted average method in its process costing system. Data for the
Assembly Department for May appear below-
Materials Labor Overhead
Work in process
, May1
18000 5500 27500
Cost added
during May
238900 80300 401500
Equivalent units
of production
35000 33000 33000
1) Compute the cost per Equivalent unit for materials, labor and overhead
2) Compute the total cost per equivalent whole unit
19. Question-2
Helix corporation produces prefabricated flooring in a series of steps carried out in
production departments. All of the material that is used in the first production
department is added at the beginning of processing in that department. Data for May
for the first production department follow-
units materials Conversion
Work in process
inventory, May 1
5000 100% 40%
Work in process
inventory, May 31
10000 100% 30%
20. Materials cost in work in process
inventory, May 1
1500
Conversion cost in work in process
inventory, May 1
4000
Units started into production 180000
Units transferred to the next
production department
175000
Materials cost added during may 54000
Conversion cost added during may 352000
1) Prepare a cost reconciliation report for the month
22. Question-3
Builder’s products, manufactures a caulking compound that goes through three processing stages prior to
completion. Information on work in the first department, cooking, is given below for may :
Pounds in process, may 1; materials
100 % complete ; conversion 80%
complete
10000
Pounds started into production
during may
100000
Pounds completed and transferred
out
?
Pounds in process, may 31,
materials 60% complete, conversion
20% complete
15000
Production Data:
23. Cost data:
Work in Process Inventory, May 1
Material Cost 1500
Conversion Cost 7200
Cost Added during May:
Material Cost 154500
Conversion Cost 90800
1) Prepare a cost reconciliation report for the month.
26. Question-4
Luxguard HomePaint Company produces exterior latex paint, which it sells in one gallon containers. The
company has two processing departments-base FAB and Finishing. White paint, which is used as a base
for all the company’s paints, is mixed from raw ingredients in the base-Fab department. Pigments are then
added to the basic white paint, the pigmented paint is squirted under pressure into one gallon containers,
and the containers are labeled and packed for shipping in the finishing departments. Information relating to
the company’s operations for April follows-
a) Issued raw materials for used in productions : base fab department , 851000 and finishing department,
629000
b) Incurred direct labor costs: : base fab department , 333000 and finishing department, 270000
c) applied manufacturing overhead cost: : base fab department , 665000 and finishing department,
405000
d) transferred basic white paint from the base fab department to the finishing dept.
e) transferred paint that had been prepared for shipping from the finishing dept to finished goods
3200000
REQUIREMENT:
1) Prepare journal entries to record items a) through e) above
2) Prepare a cost reconciliation report for april
27. Requirement-1:
a) Base Fab Dept: W/P – Dr – 851000
Finished Dept : W/P – Dr - 629000
Raw Materials -Cr - 1480000
b) Base Fab Dept: W/P – Dr – 330000
Finished Dept : W/P – Dr - 270000
Salaries & wages payable- Cr - 600000
c) Base Fab Dept: W/P – Dr – 665000
Finished Dept : W/P – Dr - 405000
Manufacturing Overhead-- Cr-- 1070000
d) Finished Dept : W/P – Dr -- 1850000
Base Fab Dept: W/P – Cr – 1850000
e) Finished Goods – Dr– 3200000
Finished Dept: W/P –Cr-- 3200000
29. Question 5
Quality brick company produces bricks in two processing dept-Molding and Firing. Information relating
to the company’s operations in march follows:
a) Raw materials were issued for use in production: molding dept 23000 and firing dept 8000
b) Direct Labor cost were incurred : molding dept 12000 and firing dept 7000
c) Manufacturing overhead was applied: molding dept 25000 and firing dept 37000
d) Unfired, molded bricks were transferred from the molding dept to the firing dept. according to the
company’s process costing system the cost of the unfired molded bricks was 57000
e) Finished bricks were transferred from the firing dept to the finished goods warehouse. According
to the company’s process costing system, the cost of the finished bricks was 103000.
f) Finished bricks were sold to customers. . According to the company’s process costing system, the
cost of the finished bricks sold was 101000.
Requirement:
1) Prepare journal entries to record items (a) through (f) above.
30. Requirement 1
a) Molding Dept: W/P – Dr – 23000
Firing Dept : W/P – Dr - 8000
Raw Materials -- Cr -- 31000
b) Molding Dept: W/P – Dr – 12000
Firing Dept : W/P – Dr - 7000
wages payable -- Cr - 19000
c) Molding Dept: W/P – Dr – 25000
Firing Dept : W/P – Dr - 37000
Manufacturing Overhead -- Cr-- 62000
d) Firing Dept : W/P -- Dr--57000
Molding Dept: W/P – Cr-- 57000
e) Finished Goods --Dr– 103000
Firing Dept : W/P --Cr-- 103000
f) COGS --Dr-- 101000
Finished Goods --Cr-- 101000