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Process Costing

Wiggles Corporation manufactures chocolate covered marshmallows using a Processing department to add marshmallow and cover it in chocolate, and a Packaging department. In June 2015, 900,000 units were completed while 100,000 units remained 70% completed, with total materials costs of P1,800,000 for marshmallow and P1,350,000 for chocolate, and conversion costs of P1,164,000.

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Claire Barba
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59 views

Process Costing

Wiggles Corporation manufactures chocolate covered marshmallows using a Processing department to add marshmallow and cover it in chocolate, and a Packaging department. In June 2015, 900,000 units were completed while 100,000 units remained 70% completed, with total materials costs of P1,800,000 for marshmallow and P1,350,000 for chocolate, and conversion costs of P1,164,000.

Uploaded by

Claire Barba
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Wiggles Corporation manufactures a chocolate covered marshmallow using two departments,

Processing and Packaging.

The first step in the processing Department is to add marshmallow. Conversion costs are assumed to be
incurred evenly throughout the process. The last step in the Processing Department before going on the
Packaging is the covering of the marshmallow with chocolate.

For the month of June, 2015, 900,000 units were completed and at the end of the month, 100,000
remains in process and are 70% completed. Materials cost incurred, marshmallow- P1,800,000;
chocolate- P1,350,000, and conversion costs, P1,164,000.

Required: Prepare a Cost of Production Report.

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