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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.

Q No.3 :PROCESS COSTING


Information given to Goods in process in the CAP DEPARTMENT of ABC company.
Beginning Inventory
Material cost
Labor cost
Overhead cost

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

Q No.6 (units transferred in from preceding department)


Beginning units in process (55% direct material and 15% conversion costs) 135,000 units
Units transferred in during the period
420,000 units
Cost transferred in this period
Work-in-process inventory-beginning

Rs.588,000
Rs.472,500

Cost added during this period:


Direct materials
Rs.812,700
Direct labor
676,260
Factory overhead
487,300
Units transferred out to finished goods inventory
430,000
Ending units in process (25% direct materials, 70% conversion cost)------------ 115,000
Difference of units is treated as normal loss.
Instruction: Prepare Cost of Production Report for the month of April

Q No.7 ( Weighted Average Method/ FIFO Method


Opening Work-in-process
Material
Labor
FOH

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

Units completed during the month 4800


Units still in process are 60% complete as to material and 40% complete as to conversion.
Required:
1. Prepare Cost of Production Report by Weighted Average Method
2. Prepare Cost of Production Report by FIFO Method

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

Units started in process during November

950,000 gallons

Work in process, November 30


Material
Conversion

240,000 gallons
80% complete
60% complete

Required:
Compute Equivalent production units under (1) FIFO Method (2) Weighted average method

Q No.10 (units transferred in from preceding department)


Beginning units in process (65% direct material and 70% conversion costs)
Units transferred in during the period
Cost transferred in this period
Work-in-process inventory-beginning

135,000 units
420,000 units
Rs.588,000
Rs.472,500

Cost added during this period:


Direct materials
Rs.812,700
Direct labor
676,260
Factory overhead
487,300
Units transferred out to finished goods inventory
430,000
Ending units in process (45% direct materials, 550% conversion cost)---------- 115,000
Difference of units is treated as normal loss.
Instruction: Prepare Cost of Production Report for the month of April

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

Cost transferred in this period


Work-in-process inventory-beginning

Rs.688,000
Rs.872,500

Cost added during this period:


Direct materials
Rs.412,700
Direct labor
576,260
Factory overhead( 75% of direct labor cost)
----------Units transferred out to finished goods inventory
530,000
Ending units in process (90% direct materials, 70% conversion cost)------------ 80,000
Difference of units is treated as normal loss.
Instruction: Prepare Cost of Production Report for the month of April by FIFO method.

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

Cost added during this period:


Direct materials
Rs.812,700
Direct labor
676,260
Factory overhead
487,300
Units transferred out to finished goods inventory
330,000
Ending units in process (45% direct materials, 60% conversion cost)------------ 70,000
Difference of units is treated as normal loss.
Instruction: Prepare Cost of Production Report for the month of April by FIFO method.

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

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