Production Cost Report for Elvis S.A.C.
Translated by
ScribdTranslationsProduction Cost Report for Elvis S.A.C.
Translated by
ScribdTranslationsSPECIALTY:
ACCOUNTING AND FINANCE
Course: Organizational Process Design
Theme:
PRACTICAL CASE JOURNAL BOOK COMPANY OF
PRODUCTION
Student:
Quispe Cáceres Edgar
Teacher: Mg. Fernando E. Mendoza
Cycle III 202-A
Year
2019
PRACTICAL CASE
Production cost report in process manufacturing
Prepare a report on production costs for the company Elvis S.A.C., which
use the process costing system for the manufacture of mouse traps.
All production is done in one department, the costing method is used.
average. The following information is available.
DATA
Units in initial process 10,000
Advance in direct raw material 100 %
Advance in labor 75%
Advances in indirect costs 75 %
Put into process during the 70,000
period
Units transferred to products 65,000
finished
Finished units and not 2,000
transferred
Units in final process 13,000
Raw material advance 100 %
Advance in labor 40%
Advance in indirect costs 40%
COSTS
Products in initial process
Direct raw material 2,000
Labor 3,000
Indirect costs 1,000
Aggregate costs
Direct raw material 50,000
Direct labor 170,000
Indirect costs 80,000
Solution
Elvis S.A.C. Company
Production cost report
Average cost method
Quantity
Units in initial process 10,000
Units put into process 70,000 80,000
Units put into process 65,000
Units finished in stock 2,000
Units in final process 13,000 80,000
Cost to transfer
Work in initial process $2,000
Raw material 3,000
Labor 1,000
Indirect costs
Aggregated costs during the period
Raw material 50,600 0.56
Labor 170,000 2.39612
Indirect costs 80,000 1,12188
Total to transfer S/. 306,000 S/. 4,16800
Transferred costs
Units transferred (65,000 at S/. 4,168) S/. 270,920
Products in final process
Finished and in stock (200 x 4,168) 8,336
Materia prima (13,000 x 100% x 0.65) 8,450
Labor (13,000 x 40% x 2.396121) 12,460
Indirect costs (13,000 x 40% x 1.12188) 5,834 35,080
Total S/. 306,000
Auxiliary calculations
Equivalent production:
Raw material : 65,000 + 2000 + (100%13,000) 80,000 Units
Labor cost 65,000 + 2000 + (13,000 x 0.40) 72,200 Units
Indirect costs : 65,000 + 2000 + (13,000 x 0.04) 72,200 units
Unit costs:
Raw material (S/. 50,000 + S/. 2,000)/80,000 units = S/. 0.650000
Labor (s/. 170,000 + 3,000)/72,200 s/. 2,396,121
Indirect costs $72,200 s/. 1,121.88
Accounting record
…………………………1………………………………..
Debe News
71 VARIAC. FROM STORED PRODUCTION 6,000
23 PRODUCTS IN PROCESS 6,000
231 Products in the manufacturing process
2311 Raw Matera 2,000
2312 Labor 3,000
2313 Indirect costs 1,000
X/X Initial inventory in process.
…………………………….2………………………………………
Must News
90 PRODUCTION COST 6,000
901 Raw material
902 Labor
903 Indirect costs
79 CHARGES ATTRIBUTABLE TO ACCOUNTS. OF ACCOUNTS AND 6,000
GTOS.
X/X Transfer to the cost account.
............................3............................ Must News
90 PRODUCTION COST 300,000
901 Raw material 50,000
902 Labor 170,000
903 Indirect costs 80,000
79 CHARGES ATTRIBUTABLE TO ACCOUNTS. OF ACCOUNTS AND
300,000
GTOS.
X/X Transfer to the cost account.
............................4.......................... Must News
21 FINISHED PRODUCTS 270,920
23 PRODUCTS IN PROCESS 35,080
71 VARIATION IN STORED PRODUCTION 306,000
X/X Cost of finished products.