Cost of Production Report

posted Mar 29, 2011, 12:42 PM by Prof Kiernan   [ updated Mar 30, 2011, 4:32 PM ]
There are a few parts to this report.

First there's the units charged to production:
Inventory in process at the beginning of the period
+________Received from materials_____________
Total units accounted for by the department

Keep in mind this is a mathematical check, the total accounted for should match the total units to be assigned cost in the last part of the problem.

the SECOND part is the units to be assigned cost:
                        

  whole units direct materials conversion
BEGINNING inventory (% completed) inventory at
beginning of
period
GIVEN
in the problem
whole units
times
(100%-% completed)
Started and COMPLETED during the month  TRANSFERRED
- BEGINNING
 <--same #
<-- same #
TRANSFERRED to another department amount
transferred
to another
department
 subtotal subtotal
ENDING inventory in process (% completed)  value in
TRANSFERRED
times
% completed
value in
TRANSFERRED
times
% completed
value in
TRANSFERRED
times
% completed
TOTAL units to be assigned cost  total
total
total

Last is the Unit costs:

Total costs for month


  Direct materials Conversion Total
Total costs for month given in problem given in problem  
total equivalent units total units to be assigned costs in the direct materials column from step 2 total units to be assigned costs in the conversion column from step 2  
Cost per equivalent unit divide cost for month by equivalent units divide cost for month by equivalent units  
costs charged to production:      
inventory in process BEGINNING     GIVEN
COSTS for month     TOTAL COSTS direct materials + total costs conversion
total costs accounted for by department     TOTAL
to complete inventory in process for month given in problem value from step 2 BEGINNING inventory under conversion Direct material + conversion
started and completed during the month WHOLE UNITS from Started and COMPLETED in step 2 TIMES the value in cost per equivalent unit under direct materials WHOLE UNITS from Started and COMPLETED in step 2 TIMES the value in cost per equivalent unit under Conversion Direct material + conversion
transferred to finished goods     total
inventory in porcess at the END of the month value from ENDING inventory in step 2 under direct materials times value in cost per equivalent unit under direct materials value from ENDING inventory in step 2 under conversion times value in cost per equivalent unit under Conversion Direct material + conversion
total costs assigned by department     Total this # should match the value in COSTS for month above








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