Cost Accounting Problem Sets: Cost of Production for the Mixing Department

1) The cost of production for the mixing Department for the month of January 2010. (showing clearly the physical Units, Equivalent production Uniot and the cost assignment and cost analysis.

1 (a) Equivalent Flow of Production Physical units Direct Material Conversion Cost Work in Process, Beg. Jan. 1, 2010 - Started during the current period 5,000.00 Total cost to be accopunted for 5,000.00

Completed & Transferred
Out during current period 4,000.00 4,000.00 4,000.00 Work in Process, Ending. Jan. 31, 2010 900.00 900.00 450.00
900x100%; 900x50% Lost in process 100.00 100x50%; 100x50% - 50.00 50.00 Accounted for 5,000.00 Work doen in current period 4,950.00 4,500.00

1 (b) The cost assignment and cost analysis: Direct Material Conversion Costs Total Production Cost
Cost added during during Jan.2010 600,000.00 150,000.00 450,000.00
Divided by equvilent units Work done in current period 4,950.00 4,500.00
Cost per equvilent Unit $30.30 $100.00 Total costs top account for 600,000.00

Assignment of Costs: Completed and transferred out (4000 Units) 521200 (4000 x 3030) + (4000 x 100 ) Work in Process, Ending (900 Units) Direct Materials 27,270.00 (900 x 3030) Conversion costs 45,000.00 (450 x 100) Total Work In Process 72,270.00 Lost in process (100 uniots) Direct Materials 1,515 (50 x 3030) Conversion costs 5,000 (50 x 100) Total lost in process 6,515