Scribd Logo
Upload

Welcome to Scribd!

  • 1 views

    Cost

    Uploaded by

    lailaabdallah2414
    Cost Accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cost

    Uploaded by

    lailaabdallah2414
    1 views8 pages
    Cost Accounting

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Cost Accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1 views8 pages

    Cost

    Uploaded by

    lailaabdallah2414
    Cost Accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 8

    Cost Accounting Systems

    Dr. Shorouk Esam El-Din Yassien


    Lecturer at Accounting
    Department (English Section),
    Faculty of Commerce, Benha University
    Ex. (4):
    The following are available data regarding process (M) which received 5000 units
    from process (N) at Dec. 2016.
    Process (M) has a beginning WIP balance of 1000 units, while the balance of WIP
    at end is double the beginning one.
    The following additional tabulated data are available, and you are required to
    prepare the needed reports, sheet for process (M), supposing that FIFO method is
    applied then resolve the exercise again supposing that WA method is used:

    Details Transf. in Material (x) is to Conv.


    costs be added at 50% Costs
    Costs during the period 30000 12000 21500
    Costs of Beg. W. in Process 3000 2000 2500
    Completion rates of Beg. WIP ? 60% 70%

    Completion rates of End. WIP ? 40% 50%


    Details Physical Transferred D. Mat Conversion cost
    Flow cost added at
    50%
    Beginning WIP 1000 $3000 $ 2000 $ 2500

    Degree of Completion for 100% 60% 70%


    beginning WIP

    started 5000

    Completed & transferred 4000


    units

    WIP at end 2000

    Degree of Completion for 100% 40% 50%


    ending WIP
    Cost added during $3000 $12000 $21500
    1- WAM Step1 Step2
    Equivalent units
    Details Physical trans D. Mat Conversion cost
    Flow added at
    50%
    Begin WIP 1000
    Started during 5000
    To account for 6000
    Completed & transferred 4000 4000 4000 4000
    units
    WIP at end 2000 2000 0 1000
    Accounted for 6000
    Equivalent production units 6000 4000 5000
    Details Total trans D. mat Conversion cost
    production
    costs
    Step3 WIP beginning 7500 $3000 $ 2000 $ 2500
    Costs added 63500 $30000 $12000 $21500
    during
    Total costs 71000 33000 14000 24000
    incurred
    / Equivalent 6000 4000 5000
    production units
    Average cost / unit 5.5 3.5 4.8
    Step 4 Total cost to 71000
    Account for
    Step 5 Assignment of
    costs :
    Completed and 55200 22000 14000 19200
    transferred (4000*5.5)+ (4000*3.5)+ (4000*4.8)

    Ending WIP 15800 11000 0 4800


    (2000*5.5)+ (0*5)+ (1000*4.8)
    2-FiFo Step1 Step2
    Equivalent units
    Details Physical transfer D. Mat Conversion cost
    Flow red added
    at 50%
    Begin WIP 1000
    Started during 5000
    To account for 6000
    Completed & transferred
    units
    From beginning 1000 0 0 300
    From during 3000 3000 3000 3000
    WIP at end 2000 2000 0 1000
    Accounted for 6000
    Equivalent production units 5000 3000 4300
    Details Total Transferred D. Mat Conversion cost
    productio added at
    n costs 50%

    Step3 WIP beginning 7500

    Costs added during 63500 $30000 $12000 $21500

    Total costs incurred 30000 12000 21500

    / Equivalent 5000 3000 4300


    production units

    Average cost / unit 6 4 5

    Step 4 Total cost to 71000


    Account for
    Step 5 Assignment of costs
    Completed and
    transferred

    WIP begin 7500


    Costs added to 1500 0 0 1500
    beginning 0*6 0*4 300*5

    Total from 9000


    beginning

    Started and 45000 18000 12000 15000


    completed 3000*6 3000*4 3000*5

    Total costs of units 54000


    completed

    Ending WIP 17000 12000 0 5000


    2000*6 0*4 1000*5

    Total costs 71000


    accounted for

    You might also like