PROCESS COSTING

1. The following information pertains to the goods in process No.3 for the month of November 1999. Goods in process inventory November 1, 40,000 units Rs. 387,000 (100% materials & 75% conversion costs)

Cost of 140,000 units transferred in form process No.2 during November Rs. 700,000 Manufacturing costs added in process No.3 during November: Direct material 280,000 Direct labor 125,000 Factory overhead 375,000 On November 30, 50,000 units are still in process No.3 which is 100% complete as to materials and 50% complete as to conversion cost. REQUIRED: Prepare Cost of Production Report. 2. The following information relates to the goods in process NO.2 of MUSTAFA Manufacturing for the month of November 2004. Goods in process inventory No.1 4,000 units Rs. 75,000 (100% material & 85% conversion cost) Cost of 206,000 units transferred in from process no.2 during November. Rs. 1,000,000 Manufacturing cost added in process No.2 during Nov Direct material Direct labor F.O.H.

560,000 250,000 750,000

On November 30, 50, 000 units are still in process No.3 which are 100% complete as to material and 50% complete as to conversion cost. REQUIRED: Prepare Cost of Production Report. 3. . Kamran manufacturing uses process cost system. The costs of process 2 for the month of May were as under: Cost from preceding process: Rs. 60,000 COST ADDED BY THE PROCESS: Material 66,448 Labor 23,328 FOH 12,312

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Following information was obtained from the department quantity schedule. Units received Units transferred Units still on process 7,500 6,000 1,500

The degree of completion of work in process was 50% of the units were 40% complete 20% of the units were 30% complete and the balance of the units was 20% complete. REQUIRED: Prepare Cost of Production Report. 4. Atique companys department B cost for January 2003 were as follows: Cost from Department A Cost added in department B Material Labor Factory overhead Rs. 5000

Rs. 20,000 25,200 33,600

The quality schedule shows 10,000 units received during the month from department A, 6,000 units were transferred to finished goods: and 4,000 units in process at the end of January were 100% complete as to material and 50% as the conversion cost. REQUIRED: Prepare Cost of Production Report. 5. The following informations was taken form the records of Faisal Manufacturing Co. for the month of January 2006. Cost of units in process on January 1, 2006 Rs.30,000. Cost of raw Materials used Rs.81,400 Direct labor Cost incurred Rs.64,800 Factory overhead Cost incurred Rs.43,200 The data extracted from the production report relating to the above process is as for follows. (1) Units in process at end of January 2006 3,000 units. (60% Material and 80% conversion cost) (2) Units placed into production during the month 13,000 units. (3) Units in process on January 1, 2006 5,000 units. (40% Material and 60% conversion cost) REQUIRED: Prepare Cost of Production Report.

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6.

Given below are the production data for Department No.1 for the first month of operation: Input to Department Material 1,000 units Rs. 100,000 Direct labor Rs. 190,000 Factory overhead Rs. 142,500 During the first month 800 units were completed and the remaining 200 units were 100% completed as to material and 75% completed as to conversion cost. REQUIRED: Prepare Cost of Production Report. 7. The following information is taken from the books of PAK STEEL MILLS for department for the month of March, 2001. Cost of units in process on March 1, 2001 40,000 Cost of material placed in production 177,600 Direct labor ? Factory overhead (120% of D.L Cost) 135,000 The data extracted from the production report relating to above process are as follows. Units in process on March 1, 2001 (80% material & 50%) 4,000 units Units placed in production during March, 2001 22,000 units Units in hand on March 31,2001 (90% material & 75% conversion cost) 6,000 units REQUIRED: Prepare Cost of Production Report. 8. SHAFIQUE & COMPANY has one department and uses a process cost system. The following data related to its process. Units in process November 1, Cost of units in process November 1, Units placed in production during November Cost of material placed in production Direct labor cost incurred Factory overhead applied Units in process November 30 REQUIRED: Prepare Cost of Production Report. 9. Mansoor Industries Limited uses a process cost system of three processes, the following data relates to its process 1 Beginning inventory Raw material used Direct labor cost used Rs. 160,000 250,000 368,000 Page 3/4 1,000 Units (40% material & 60% conversion) Rs .12,700 4,000 units Rs. 68,700 28,000 50,400 15,000 units (75% Material & 80% conversion)

Factory overhead cost used

276,000

The data extracted from a quantity schedule relating to the above processes are as follows. Units in process beginning 130,000 (100% completed as to material 70% as to conversion cost) Units placed in production 475,000 Units completed 400,000 Units still in process at the end 90% completed as to material and 50% complete as to conversion cost. REQUIRED: Prepare Cost of Production Report. 10. ABC Company produces a consumer item, which passes through two processes. The details of two processes are as under: Department A Department B Direct Material 70,000 50,000 Direct labor 35,000 25,000 Factory overhead 35,000 25,000 Units started in production in department A; 50,000 units. Units still in process (at end) as: Department A 20,000 units (25% completed) Department B 10,000 units (50% completed) REQUIRED: Prepare Cost of Production Report. 11. One of the primary products of Omark Company is Oma Corn. The product is processed in two departments and then transferred to the company warehouse. The flow of product through the department during the month is shown below: Work in process (Dept F) Input 20,000 units Balance 4,000 units Work in process (Dept G) Received from Dept F Transfer to ware house

16,000 14,000

Departmental cost added by the department is: Dept F Direct material $18,000 Direct labor $ 9,000 Factory overhead $ 4,500 Work in process (at end) 50% material and conversion. REQUIRED: Prepare Cost of Production Report.

Dept G $ 15,000 $ 7,500 $ 3,750

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