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process final

The document outlines two questions related to the preparation of cost of production reports for manufacturing departments. The first question involves NH Jones Manufacturing, detailing their production data for china figurines, including costs and units for the molding department. The second question pertains to All-win Engineering Limited, providing quantitative and cost data for Department 1, requiring a similar cost of production report for May 2020.

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hajraroy1
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2 views

process final

The document outlines two questions related to the preparation of cost of production reports for manufacturing departments. The first question involves NH Jones Manufacturing, detailing their production data for china figurines, including costs and units for the molding department. The second question pertains to All-win Engineering Limited, providing quantitative and cost data for Department 1, requiring a similar cost of production report for May 2020.

Uploaded by

hajraroy1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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QUESTION 1

The NH Jones Manufacturing company produces china figurines. The molding department inspects for
spoiled units at the end of the process. Direct materials are added at the beginning of the process, and
direct labor and factory overhead are incurred evenly throughout the process. Mays data for the
department are as follows,

Beginning WIP (30% conversion cost) 3,000 units


Cost of WIP inventory 6,500
Units transferred in during period 12,000 units
Cost of transferred in 20,290
WIP Ending (60% conversion) 3,500 units
Units transferred out 11,000 units
Normal loss 800 units
Cost added during the period
Material 10,500
Labor 7,500
Factory overhead 2,500

Required: Prepare cost of production report for molding department for the month of May.
QUESTION 2

All-win Engineering limited uses Process Costing system. Following data is available for Department:-1
for the month of May, 2020:

Quantitative data:

Beginning work in process inventory …………………………………… 5,000 units

Units put into process during the month ………………………………… 55,000 units

Units completed and transferred to department: 2 during the month ……. 52,000 units

Units in work in process closing inventory at month end ………………. 5,000 units

Cost data:

 Units in beginning work-in-process inventory contains Cost, as follows:


Direct materials......................................................................................... Rs 36,000

Direct labor............................................................................................... 38,000

Factory overhead....................................................................................... 42,000

 Costs added during the month are as follows:


Direct materials consumed ……………………………………………… Rs280,400

Direct labor incurred ……………………………………………………. 321,125

Factory overhead applied ………………………………………………. 339,225

Other statistical data:

Work in process opening inventory is completed 75% as per direct material and 60% as per
conversion cost.
 Work in process closing inventory is completed 80% as per direct material and 65% as per
conversion cost.
Required:

i).Prepare the Cost of Production Report for Department: 1 for the month of May, 2020

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