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    Tutorial 5 Process Costing

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    Mahrufa Afa
    This document provides examples and instructions for process costing problems. It includes details on the production and costs for three different companies - Springville Company, Stillwater Designs, and Mino Inc. - across multiple departments and time periods. Students are asked to prepare physical flow schedules, calculate equivalent units and unit costs, and reconcile costs for the departments described.

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    Tutorial 5 Process Costing

    Uploaded by

    Mahrufa Afa
    314 views3 pages
    This document provides examples and instructions for process costing problems. It includes details on the production and costs for three different companies - Springville Company, Stillwater Designs, and Mino Inc. - across multiple departments and time periods. Students are asked to prepare physical flow schedules, calculate equivalent units and unit costs, and reconcile costs for the departments described.

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    This document provides examples and instructions for process costing problems. It includes details on the production and costs for three different companies - Springville Company, Stillwater Designs, and Mino Inc. - across multiple departments and time periods. Students are asked to prepare physical flow schedules, calculate equivalent units and unit costs, and reconcile costs for the departments described.

    Copyright:

    Public Domain
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    314 views3 pages

    Tutorial 5 Process Costing

    Uploaded by

    Mahrufa Afa
    This document provides examples and instructions for process costing problems. It includes details on the production and costs for three different companies - Springville Company, Stillwater Designs, and Mino Inc. - across multiple departments and time periods. Students are asked to prepare physical flow schedules, calculate equivalent units and unit costs, and reconcile costs for the departments described.

    Copyright:

    Public Domain
    Download as PDF, TXT or read online from Scribd
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    Tutorial 5: Process Costing

    1. Springville Company, which uses the weighted average method, produces a


    product that passes through two departments: Blending and Cooking. In the
    blending department, all materials are added at the beginning of the process. All
    other manufacturing inputs are added uniformly. The following information
    pertains to the blending department for February:

    a. BWIP, February 1: 100,000 pounds, 40% complete with respect to


    conversion costs. The costs assigned to this work are as follows:
    Materials RM 20,000
    Labor RM 10,000
    Overhead RM 30,000

    b. EWIP, February 28: 50,000 pounds, 60% complete with respect to conversion
    costs.

    c. Units completed and transferred out: 370,000 pounds. The following costs
    were added during the month:

    Materials RM 211,000
    Labor RM 100,000
    Overhead RM 270,000

    Required:
    1. Prepare a physical flow schedule.
    2. Prepare a schedule of equivalent units.
    3. Compute the cost per equivalent unit.
    4. Compute the cost of goods transferred out and the cost of EWIP.
    5. Prepare a cost reconciliation.
    2. Recently, Stillwater Designs expanded its market by becoming an original
    equipment supplier to Jeep Wrangler. Stillwater Designs produces factory
    upgraded speakers specifically for Jeep Wrangler. The Kicker components and
    speaker cabinets are outsourced with assembly remaining in-house. Stillwater
    Designs assemble the product by placing the speakers and other components in
    cabinets that define an audio package upgrade and that can be placed into the
    Jeep Wrangler, producing the desired factory-installed appearance. Speaker
    cabinets and associated Kicker components are added at the beginning of the
    assembly process.
    Assume that Stillwater Designs uses the weighted average method to cost out
    the audio pack-age. The following are cost and production data for the assembly
    process for April:

    Production:
    Units in process, April 1, 60% complete 60,000
    Units completed and transferred out 150,000
    Units in process, April 30, 20% complete 30,000

    Costs:
    WIP, April 1:
    Cabinets RM 1,200,000
    Kicker components RM 12,600,000
    Conversion costs RM 5,400,000

    Costs added during April:


    Cabinets RM 2,400,000
    Kicker components RM 25,200,000
    Conversion costs RM 8,640,000

    Required:

    1. Prepare a physical flow analysis for the assembly department for the month of
    April.
    2. Calculate equivalent units of production for the assembly department for the
    month of April.
    3. Calculate unit cost for the assembly department for the month of April.
    4. Calculate the cost of units transferred out and the cost of EWIP inventory.
    5. Prepare a cost reconciliation for the assembly department for the month of
    April.
    3. Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing,
    and Bottling. Mino uses the weighted average method. The following are cost and
    production data for the cooking department for April (Note: Assume that units are
    measured in gallons):

    Production:
    Units in process, April 1, 60% complete 20,000
    Units completed and transferred out 50,000
    Units in process, April 30, 20% complete 10,000

    Costs:
    WIP, April 1 RM 93,600
    Costs added during April RM 314,600

    Required:

    Prepare a production report for the cooking department.

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