Problems – Cost of Production Reports

Problems – Cost of Production Reports

Hilton Products manufactures one product in two departments on a continuous basis and uses the average method of process cost accounting. 
The following information was reported for the month of May.            
Hilton Products manufactures one product in two departments on a continuous basis and uses the average method of process cost accounting. 
The following information was reported for the month of May.      
               
          Production Costs    
        Machining   Assembly  
Work in process, beginning of month:    $                   –      $          27,000  
Cost in Machining            
  Materials    $        4,000    $           800    
  Labor              3,000                  400    
  Factory overhead            2,000  $            9,000                600  $            1,800  
Cost incurred during month:          
  Materials    $     68,000    $     44,000    
  Labor            51,000            22,000    
  Factory overhead          34,000            153,000          33,000              99,000  
    Total    $        162,000    $        127,800  
               
          Production Costs    
        Machining   Assembly  
        (Units)   (Units)  
In process, beginning of month   1,000   1,000  
Finished and transferred during month   5,000   4,000  
In process, end of month     2,000   2,000  
Stage of completion as to materials, labor, overhead One-half   One-half  
               
Requirements:            
Prepare a cost of production summary for each department for the month.     
               
      Berg Products        
      Cost of Production Summary—Machining        
      For the Month Ended May 31, 2011        
               
Cost of work in process, beginning of month:        
  Materials            
  Labor            
  Factory overhead          
Cost of production for month:          
  Materials            
  Labor            
  Factory overhead          
Total costs to be accounted for          
               
Unit output for month:            
  Finished and transferred to Assembly during month      
  Equivalent units of WIP, end of month        
    Total equivalent production      
Unit cost for month:            
  Materials            
  Labor             
  Factory overhead          
    Total          
Inventory costs:            
  Cost of goods finished & transferred to Assembly during month    
Cost of work in process, end of month:          
  Materials            
  Labor             
  Factory overhead          
Total production costs accounted for          
               
               
      Berg Products        
      Cost of Production Summary—Assembly        
      For the Month Ended May 31, 2008        
               
Cost of work in process, beginning of month:        
  Cost in Machining          
  Cost in Assembly:          
    Materials          
    Labor          
    Factory overhead        
               
Cost of goods received from Machining during month        
               
Cost of production for month:          
  Materials            
  Labor            
  Factory overhead          
Total cost to be accounted for          
               
Unit output for month:            
  Finished and transferred to stockroom during month      
  Equivalent units of work in process, end of month       
    Total equivalent production      
Unit cost for month:            
Cost from prior department:          
  Beginning inventory          
  Transferred in this month          
  Average cost per unit          
Cost in Assembly:            
  Materials            
  Labor            
  Factory overhead          
    Total          
Inventory costs:            
Cost of goods finished and transferred to stockroom during month:      
  Cost in Machining          
  Cost in Assembly          
Cost of work in process, end of month:          
  Cost in Machining          
  Cost in Assembly:          
    Materials          
    Labor          
    Factory overhead        
Total production costs accounted for          
               

 

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