Task: Determine inventory cost using process costing
Problem 1: Determining inventory cost using a process cost system
Mickel Company had 200 units of product in work in process inventory at the beginning of the period. It started 1,400 units during the period and transferred 1,200 units to finished goods inventory. The ending work in process inventory was estimated to be 80 percent complete. Cost data for the period follow.
Product Costs
Beginning balance $15,800
Added during period 29,040
Total $44,840
Required:
Prepare a cost of production report showing the following.
a. The number of equivalent units of production.
b. The product cost per equivalent unit.
c. The total cost allocated between ending work in process inventory and finished goods inventory.
Problem 2: Process cost system cost of production report
At the beginning of 2004, Dozier Company had 1,800 units of product in its work in process inventory, and it started 19,200 additional units of product during the year. At the end of the year, 6,000 units of product were in the work in process inventory. The ending work in process inventory was estimated to be 50 percent complete. The cost of work in process inventory at the beginning of the period was $9,000, and $108,000 of product costs was added during the period.
Prepare a cost of production report showing the following.
a. The number of equivalent units of production.
b. The product cost per equivalent unit.
c. The total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts.
Problem 3: Determining inventory cost using process costing
Carri Company's beginning work in process inventory consisted of 4,500 units of product on January 1, 2006. During 2006, the company started 24,000 units of product and transferred 23,500 units to finished goods inventory. The ending work in process inventory was estimated to be 30 percent complete.
Cost data for 2006 follow.
Product Costs
Beginning balance $ 19,000
Added during period 151,000
Total $170,000
Prepare a cost of production report showing the following.
a. The number of equivalent units of production.
b. The product cost per equivalent unit.
c. The total cost allocated between ending work in process inventory and finished goods inventory.