Pani Manufacturing Company has its products processed in two consecutive departments, Mixing and Finishing.

Conversion costs are evenly applied throughout the processes while materials are added at the start of the process
and at the middle of the process for Mixing and Finishing respectively. Cost and production data for August are as
follows:

Cost data: Mixing Finishing

August factory cost
Materials 62,500.00 34,425.00
Labor 80,031.25 52,591.50
Overhead 65,256.25 40,455.00
Cost from Mixing ?
In Process August 1
Materials 14,400.00 -
Labor 6,450.00 840.00
Overhead 5,350.00 640.00
Cost from Mixing 19,920.00

Production data: Mixing Finishing

In Process, August 1 6,000 1/3 done 2,400 1/6 done
Placed in process in August 25,000 26,000
In Process, August 31 ? 1/8 done 2,000 1/4 undone
Loss units 1,000 1,400

Required: Prepare the cost of production report under a) FIFO and b) Average assuming loss units:
1) Normal discovered at the beginning
2) Normal discovered at the end
3) Abnormal discovered at the end
4) Are expected at 2% of the unit completed and discovered at the end
5) Are normal discovered at QCI of 90% for Mixing and at 50% completion for Finishing before
adding the materials
6) Base on #5 and assuming loss units are expected at 2% and 3% of the units completed for Mixing and Finishing
respectively

Lost Units - Normal and Abnormal

Pani Manufacturing Company has its products processed in two consecutive departments, Mixing and Finishing.
Conversion costs are evenly applied throughout the processes while materials are added at the start of the process
and at the middle of the process for Mixing and Finishing respectively. Cost and production data for August are as
follows:

Cost data: Mixing Finishing

August factory cost
Materials 62,500.00 34,425.00
Labor 80,031.25 52,591.00
Overhead 65,256.25 40,455.00
Cost from Mixing ?
In Process August 1
Materials 14,400.00 -
Labor 6,450.00 840.00
Overhead 5,350.00 640.00
Cost from Mixing 19,920.00

Production data: Mixing Finishing

In Process, August 1 6,000 1/3 done 2,400 1/6 done
 Placed in process in August 25,000 26,000
In Process, August 31 ? 1/8 done 2,000 1/4 undone
Loss units 1,000 1,400

Required: Prepare the cost of production report under a) FIFO and b) Average assuming loss units:
1) Normal discovered at the beginning or during
2) Normal discovered at the end
3) Abnormal discovered at the beginning
4) Abnormal discovered at the end
5) Are expected at 2% of the unit completed and discovered at the end
6) Are normal discovered at QCI of 90% for Mixing and at 50% completion for Finishing before adding the materials
7) Base on #6 and assuming loss units are expected at 2% and 3% of the units completed for Mixing and Finishing
respectively

MIXING FIN
Qty Actual Materials Labor and OH Actual
Schedule Units WD EUP WD EUP Units
In Process April 1 6,000 100% - 1/3 2,000 2,400
Placed in process in August 25,000 26,000
Total 31,000 28,400

Transferred to Finishing/Finished Goods

In Process April 1 6,000 0% - 2/3 4,000 2,400
Placed in process in Augus 20,000 100% 20,000 100% 20,000 22,600
In Process April 30 4,000 100% 4,000 1/8 500 2,000
Normal loss - Beginning 1,000 0% - 0% - 1,400
Total 31,000 24,000 24,500 28,400

Cost Charged to Department A Total In Process Current Unit Total

EUP
Cost Beg Cost Cost Cost
Cost from Mixing 240,525.78
Added this Department
Materials 76,900.00 14,400.00 62,500.00 24,000 2.604167 34,425.00
Labor 86,481.25 6,450.00 80,031.25 24,500 3.266582 53,431.00
Factory Overhead 70,606.25 5,350.00 65,256.25 24,500 2.663520 41,095.00
Total added 128,951.00
Adjustment for loss units
Total Cost to be Accounted 233,987.50 26,200.00 207,787.50 8.534269 369,476.78

Cost accounted as follows:

Transferred to Finishing/Finished Goods
 In Process 8/1
Cost Last Month 26,200.00
Cost to complete
Materials 0
Labor 13,066.33
Overhead 10,654.08 23,720.41 49,920.41
Placed in Process in August 170,685.37
Total cost transferred 220,605.78
In process 8/31
Cost from Mixing
Materials 10,416.67
Labor 1,633.29
Overhead 1,331.76 13,381.72
Adjustment for loss units
Total costs as accounted for 233,987.50
nishing
materials
nishing

FINISHING
Material Labor and OH
WD EUP WD EUP
0% - 1/6 400

100% 2,400 5/6 2,000

100% 22,600 100% 22,600
100% 2,000 3/4 1,500
0% - 0% -
27,000 26,100

In Process Current Unit

EUP
Beg Cost Cost
19,920.00 220,605.78 26,000 8.484838

- 34,425.00 27,000 1.275000

840.00 52,591.00 26,100 2.014981
640.00 40,455.00 26,100 1.550000
1,480.00 127,471.00 4.839981
0.482877
21,400.00 348,076.78 13.807696
 21,400.00

3,060.00
4,029.96
3,100.00 10,189.96 31,589.96
312,053.92
343,643.88

16,969.68
2,550.00
3,022.47
2,325.00
965.75 25,832.90
369,476.78
 MIXING FINISHING
Qty Actual Materials Labor and OH Actual Material Labor and OH
Schedule Units WD EUP WD EUP Units WD EUP WD EUP
In Process April 1 6,000 100% 6,000 1/3 2,000 2,400 0% - 1/6 400
Started/Received 25,000 26,000
Total 31,000 28,400

Transferred to Finished Goods

In Process April 1 6,000 0% - 2/3 4,000 2,400 100% 2,400 5/6 2,000
Started/Received 20,000 100% 20,000 100% 20,000 22,600 100% 22,600 100% 22,600
In Process April 30 4,000 100% 4,000 1/8 500 2,000 100% 2,000 3/4 1,500
Normal loss - Beginning 1,000 0% - 0% - 1,400 0% - 0% -
Total 31,000 24,000 24,500 28,400 27,000 26,100

Cost Charged to Department A Total In Process Current Unit Total In Process Current Unit
EUP EUP
Cost Beg Cost Cost Cost Beg Cost Cost
In Process April 1
Cost from Department A 240,525.78 19,920.00 220,605.78 26,000 8.484838
Cost Added
Materials 76,900.00 14,400.00 62,500.00 24,000 2.604167 34,425.00 - 34,425.00 27,000 1.275000
Labor 86,481.25 6,450.00 80,031.25 24,500 3.266582 53,431.50 840.00 52,591.50 26,100 2.015000
Overhead 70,606.25 5,350.00 65,256.25 24,500 2.663520 41,095.00 640.00 40,455.00 26,100 1.550000
Total 233,987.50 26,200.00 207,787.50 8.534269 128,951.50 1,480.00 127,471.50 4.840000
Adjustment for lost units - 0.482877
Total Cost to be accounted 233,987.50 26,200.00 207,787.50 8.534269 369,477.28 21,400.00 348,077.28 13.807715

Cost Accounted as follows:

Transferred to Department B
In Process April 1
Cost Last Month 26,200.00 21,400
Cost to complete
Materials - X 2.604167 - 2,400 X 1.275000 3,060.00
Labor 4,000 X 3.266582 13,066.33 2,000 X 2.015000 4,030.00
Overhead 4,000 X 2.663520 10,654.08 49,920.41 2,000 X 1.550000 3,100.00
Adj. for lost units 6,000 X - - 49,920.41 0 X 0.482877 - 31,590.00
Started/Received and Completed 20,000 X 8.53427 170,685.37 22,600 X 13.807715 312,054.35
Total Cost Transferred 220,605.78 343,644.35
In Process April 30
Cost from Department A 2,000 X 8.484838 16,969.68
Materials 4,000 X 2.604167 10,416.67 2,000 X 1.275000 2,550.00
Labor 500 X 3.266582 1,633.29 1,500 X 2.015000 3,022.50
Overhead 500 X 2.663520 1,331.76 1,500 X 1.550000 2,325.00
Adj. for lost units 4,000 X - - 13,381.72 2,000 X 0.482877 965.75 25,832.93
Total costs as accounted for 233,987.50 369,477.28

Material Labor Overhead Total Mixing Material Labor Overhead Total

Cost of Normal loss - - - - 11,878.77 - - - 11,878.77
Units identified with lost units (Started/Received and Completed + IP end 24,000 (Received and Completed + IP end) 24,600
Adjustment for lost units - 0.482877
-