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