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Transcript of 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process...
![Page 1: 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process Costing.](https://reader038.fdocuments.us/reader038/viewer/2022110206/56649f4d5503460f94c6e476/html5/thumbnails/1.jpg)
17 - 1©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Process CostingProcess Costing
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17 - 2©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 1
Identify the situations in which
process-costing systems
are appropriate.
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17 - 3©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Illustrating Process CostingIllustrating Process Costing
Direct Materials, Direct LaborIndirect Manufacturing Costs
DepartmentA
DepartmentB
Finished Goods Cost of Goods Sold
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17 - 4©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 2
Describe the five steps
in process costing.
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17 - 5©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Five Steps in Process CostingFive Steps in Process Costing
Step 1: Summarize the flow of physical units of output.
Step 2: Compute output in terms of equivalent units.
Step 3: Compute equivalent unit costs.
Step 4: Summarize total costs to account for.
Step 5: Assign total costs to units completed and to units in ending work in process inventory.
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17 - 6©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 3
Calculate equivalent units and
understand how to use them.
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17 - 7©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Physical Units (Step 1)Physical Units (Step 1)
Physical unitsFlow of ProductionWork in process, beginning 0Started during current period 35,000To account for 35,000Completed and transferred out during current period 30,000Work in process, ending (100%/20%) 5,000Accounted for 35,000
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17 - 8©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent Units(Step 2)
Compute Equivalent Units(Step 2)
Equivalent unitsDirect Conversion
Flow of Production Materials CostsCompleted and transferred out 30,000 30,000Work in process, ending 5,000 (100%) 1,000 (20%)Current period work 35,000 31,000
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17 - 9©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent Unit Costs(Step 3)
Compute Equivalent Unit Costs(Step 3)
Direct Conversion Materials Costs
$84,050 $62,000Equivalent units 35,000 31,000Cost per equivalent unit $2.4014 $2.00
Total production costs are $146,050.
![Page 10: 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process Costing.](https://reader038.fdocuments.us/reader038/viewer/2022110206/56649f4d5503460f94c6e476/html5/thumbnails/10.jpg)
17 - 10©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Step 4: Total costs to account for: $146,050
Step 5: Assign total costs:
Completed and transferred out30,000 × $4.4014 $132,043
Work in process, ending (5,000 units)Direct materials 5,000 × $2.4014 12,007Conversion costs 1,000 × $2.00 2,000Total $146,050
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17 - 11©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 4
Prepare journal entries for
process-costing systems.
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17 - 12©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Journal Entries ExampleJournal Entries Example
Assume that Omaha, Inc. has two processingdepartments – Assembly and Finishing.
Omaha, Inc., purchases direct materials as needed.
What is the journal entry for materials?
Work in Process, Assembly 84,050Accounts Payable Control 84,050
To record direct materials purchased and used
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17 - 13©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Journal Entries ExampleJournal Entries Example
What is the journal entry for conversion costs?
Work in Process, Assembly 62,000Various accounts 62,000
To record Assembly Department conversion costs
What is the journal entry to transfer completedgoods from Assembly to Finishing?
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17 - 14©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Journal Entries ExampleJournal Entries Example
Work in Process, Finishing 132,043Work in Process, Assembly 132,043
To record cost of goods completed and transferredfrom Assembly to Finishing during the period
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17 - 15©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Flow of Costs ExampleFlow of Costs Example
Accounts Payable 84,050
Various Accounts 62,000
WIP Assembly84,050 132,04362,00014,007
WIP Finishing 132,043
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17 - 16©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 5
Use the weighted-average
method of process costing.
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17 - 17©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Physical Units (Step 1)Physical Units (Step 1)
Work in process, beginning:100% material60% conversion costs 1,000Units started in process 35,000 36,000Units transferred out: 31,000Units in ending inventory:100% material20% conversion costs 5,000 36,000
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17 - 18©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent Units (Step 2)Compute Equivalent Units (Step 2)
Materials ConversionCompleted and transferred 31,000 31,000Ending inventory 5,000 1,000Equivalent units 36,000 32,000
100% 20%
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17 - 19©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnit Costs (Step 3)
Compute EquivalentUnit Costs (Step 3)
Materials ConversionBeginning inventory $ 2,350 $ 5,200Current costs 84,050 62,000Total $86,400 $67,200Equivalent units 36,000 32,000Cost per unit $2.40 $2.10
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17 - 20©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Work in process beginning inventory:Materials $ 2,350Conversion 5,200Total beginning inventory $ 7,550
Current costs in Assembly Department:Materials $ 84,050Conversion 62,000
Costs to account for $153,600
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17 - 21©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign Total Costs (Steps 4 and 5)
Summarize and Assign Total Costs (Steps 4 and 5)
This step distributes the department’s costs to unitstransferred out: 31,000 units × $4.50 = $139,500
And to units in ending work in process inventory:$12,000 + $2,100 = $14,100
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17 - 22©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign Total Costs (Steps 4 and 5)
Summarize and Assign Total Costs (Steps 4 and 5)
Costs transferred out:31,000 × ($2.40 + $2.10) $139,500
Costs in ending inventory:Materials 5,000 × $2.40 12,000Conversion 1,000 × $2.10 2,100
Total costs accounted for: $153,600
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17 - 23©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Journalizing: Weighted-AverageJournalizing: Weighted-Average
What are the journal entries in theAssembly Department?
Work in Process, Assembly 84,050Accounts Payable Control 84,050
To record direct materials purchased and used
Work in Process, Assembly 62,000Various accounts 62,000
To record Assembly Department conversion costs
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17 - 24©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Journalizing: Weighted-AverageJournalizing: Weighted-Average
Work in Process, Finishing 139,500Work in Process, Assembly 139,500
To record cost of goods completed and transferredfrom Assembly to Finishing during the period
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17 - 25©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Key T-Account:Weighted-Average
Key T-Account:Weighted-Average
Work in Process Inventory, AssemblyBeg. Inv. 7,550 TransferredMaterials 84,050 to FinishingConversion 62,000 139,500Balance 14,100
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17 - 26©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 6
Use the first-in, first-out (FIFO)
method of process costing.
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17 - 27©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnits (Steps 1 and 2)Compute EquivalentUnits (Steps 1 and 2)
Materials ConversionCompleted and transferred:From beginning inventory 0 400Started and completed 30,000 30,000Ending inventory 5,000 1,000
35,000 31,400
Quantity schedule (Step 1) is the same asthe weighted-average method.
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17 - 28©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnits (Step 2)
Compute EquivalentUnits (Step 2)
Materials ConversionCompletedand transferred: 31,000 31,000Ending inventory 5,000 (100%) 1,000 (20%)
36,000 32,000Beginning inventory 1,000 (100%) 600 (60%)Equivalent units 35,000 31,400
![Page 29: 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process Costing.](https://reader038.fdocuments.us/reader038/viewer/2022110206/56649f4d5503460f94c6e476/html5/thumbnails/29.jpg)
17 - 29©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnit Costs (Step 3)
Compute EquivalentUnit Costs (Step 3)
Materials ConversionCurrent costs $84,050 $62,000Equivalent units 35,000 31,400Cost per unit $2.40 $1.975
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17 - 30©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Work in process beginning inventory: $ 7,550
Current costs:Material 84,050Conversion 62,000Total $153,600
Same as using weighted-average
![Page 31: 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process Costing.](https://reader038.fdocuments.us/reader038/viewer/2022110206/56649f4d5503460f94c6e476/html5/thumbnails/31.jpg)
17 - 31©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Costs transferred out:
From beginning inventory: $7,550Conversion costs added:1,000 × 40% × $1.975 790 $ 8,340
From current production:30,000 × $4.375 131,250
Total $139,590
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17 - 32©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Work in process ending inventory:
Materials: 5,000 × $2.40 $12,000
Conversion:5,000 × 20% × $1.975 1,975Total $13,975
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17 - 33©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Costs transferred out $139,590
Cost in ending inventory $ 13,975
$153,565 ($35 rounding error)
An alternative approach:
Costs to account for $153,600
Cost in ending inventory $ 13,975
Costs transferred out $139,625
+=
–=
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17 - 34©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Key T-Account: FIFOKey T-Account: FIFO
Work in Process Inventory, AssemblyBeg. Inv. 7,550 TransferredMaterials 84,050 to FinishingConversion 62,000 139,625Balance 13,975
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17 - 35©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Comparison of Weighted-Average and FIFO MethodsComparison of Weighted-
Average and FIFO Methods
Weighted Average FIFO Difference
Costs of units completed and transferred out $139,500 $139,625 +$125Work in process, ending 14,100 13,975 –$125Total costs accounted for $153,600 $153,600 0
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17 - 36©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 7
Incorporate standard costs
into a process-costing system.
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17 - 37©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Standard-Costing Methodof Process-Costing ExampleStandard-Costing Method
of Process-Costing Example
Process-costing systems using standard costsusually accumulate actual costs incurredseparately from the inventory accounts.
Assume that actual materials cost is $84,050and standard materials cost is $84,250
What are the journal entries in theAssembly Department?
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17 - 38©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Standard-Costing Methodof Process-Costing ExampleStandard-Costing Method
of Process-Costing Example
Direct Materials Control 84,050Accounts Payable Control 84,050
Work in Process 84,250Direct Material Variances 200Direct Materials Control 84,050
To record direct materials purchased and used inproduction during the period and variances
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17 - 39©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Learning Objective 8
Apply process-costing methods
to cases with transferred-in costs.
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17 - 40©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Transferred-In CostsWeighted-Average Example
Transferred-In CostsWeighted-Average Example
Finishing Department beginning WIP inventory:4,000 units (60% materials) (25% conversion)
Ending work in process inventory:2,000 units (100% materials) (40%) conversion)
31,000 units transferred-in from Assembly.
![Page 41: 17 - 1 ©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Process Costing.](https://reader038.fdocuments.us/reader038/viewer/2022110206/56649f4d5503460f94c6e476/html5/thumbnails/41.jpg)
17 - 41©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Physical Units (Step 1)Physical Units (Step 1)
Beginning inventory 4,000Units started in process 31,000
35,000
Units completed and transferred to finished goods 33,000Ending inventory 2,000
35,000
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17 - 42©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnits (Step 2)
Compute EquivalentUnits (Step 2)
Equivalent units for transferred-in costs:
Transferred to finished goods 33,000Ending inventory 2,000
35,000
Inventory is 100% complete for the workperformed in the Assembly Department.
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17 - 43©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnits (Step 2)
Compute EquivalentUnits (Step 2)
Equivalent units for direct materials costs:Transferred to finished goods 33,000Ending inventory (100%) 2,000
35,000
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17 - 44©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnits (Step 2)
Compute EquivalentUnits (Step 2)
Equivalent units for conversion costs(ending inventory 2,000):
Transferred to finished goods 33,000Ending inventory (40%) 800
33,800
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17 - 45©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnit Costs (Step 3)
Compute EquivalentUnit Costs (Step 3)
Assume the following costs in theFinishing Department:
Work in process beginning inventory from:Assembly Department $30,200Direct materials 9,400Conversion costs 8,000Total cost in beginning inventory $47,600
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17 - 46©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnit Costs (Step 3)
Compute EquivalentUnit Costs (Step 3)
Current costs in Finishing Departmentare as follows:
Costs received from the Assembly Department $139,500 Direct materials 9,780 Conversion 42,640 Total $191,920
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17 - 47©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute EquivalentUnit Costs (Step 3)
Compute EquivalentUnit Costs (Step 3)
(Transferred-in costs $30,200 + Costs transferredin from the Assembly Department $139,500)÷ 35,000 units $4.85
(Direct materials $9,400 + $9,780)÷ 35,000 units $0.55
(Conversion costs $8,000 + $42,640)÷ 33,800 units $1.50
Total unit cost $6.90
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17 - 48©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Total costs in beginning inventory $ 47,600Current costs in Finishing Department 191,920
$239,520
Costs to account for: $47,600 + $ 191,920 = $239,520
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17 - 49©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Costs in work in process ending inventory:
Transferred-in costs: 2,000 × $4.85 $ 9,700
Direct materials: 2,000 × $0.55 1,100
Conversion: 2,000 × 40% × $1.50 1,200
Total cost in ending inventory $12,000
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17 - 50©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts (Steps 4 and 5)
Summarize and Assign TotalCosts (Steps 4 and 5)
Costs to account for: $239,520
Costs transferred to finished goods inventory:33,000 × $6.90 $227,700
Costs in ending work in process inventory:$12,000 – $180 rounding error 11,820
Total $239,520
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17 - 51©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
T-Account Finishing DepartmentT-Account Finishing Department
Work in Process Inventory, FinishingBeg. Inv. 47,600 Transferred toTransferred-in 139,500 Finished GoodsMaterials 9,780 227,700Conversion 42,640Balance 11,820
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17 - 52©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Transferred-In CostsFIFO Method
Transferred-In CostsFIFO Method
The physical units (Step 1) is the sameas in weighted-average.
Beginning inventory 4,000Units started in process 31,000
35,000
Units transferred to finished goods 33,000Ending inventory 2,000
35,000
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17 - 53©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for transferred-in costs:From beginning work in process 0Started and completed 29,000Work in process, ending (100%) 2,000Total equivalent units 31,000
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17 - 54©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for transferred-in costs:
Transferred to finished goods 33,000Ending work in process inventory 2,000Total 35,000
Beg. work in process inventory – 4,000
Equivalent units 31,000
Inventories are 100% complete for the workperformed in the Assembly Department.
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17 - 55©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for materials costs:From beginning work in process 1,600Started and completed 29,000Work in process, ending (100%) 2,000Total equivalent units 32,600
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17 - 56©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for material costs(beginning inventory 4,000):
Transferred to finished goods 33,000
Ending inventory (100%) 2,000Total 35,000
Beginning inventory (60%) –2,400
Equivalent units 32,600
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17 - 57©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for conversion costs:From beginning work in process 3,000Started and completed 29,000Work in process, ending (40%) 800Total equivalent units 32,800
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17 - 58©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent UnitsFIFO (Step 2)
Compute Equivalent UnitsFIFO (Step 2)
Equivalent units for conversion costs (beginninginventory 4,000, ending inventory 2,000):
Transferred to finished goods 33,000
Ending inventory (40%) 800Total 33,800
Beginning inventory (25%) –1,000
Equivalent units 32,800
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17 - 59©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Compute Equivalent Unit CostsFIFO (Step 3)
Compute Equivalent Unit CostsFIFO (Step 3)
Cost per equivalent unit:
Transferred-in: $139,590 ÷ 31,000 $4.50
Direct materials: $9,780 ÷ 32,600 0.30
Conversion: $42,640 ÷ 32,800 1.30
Total unit cost $6.10
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17 - 60©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Current costs in Finishing Department: $192,010
Work in process beginning inventory: 47,600
Costs to account for:(same as weighted-average) $239,610
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17 - 61©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Work in process ending inventory:
Transferred-in: 2,000 × $4.50 $ 9,000
Direct materials: 2,000 × $0.30 600
Conversion: 800 × $1.30 1,040
Total $10,640
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17 - 62©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Costs transferred out:
From beginning inventory: $47,600
Direct materials added:4,000 × 40% × $0.30 480
Conversion costs added:4,000 × 75% × $1.30 3,900
Total $51,980
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17 - 63©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Total costs transferred out:From beginning inventory $ 51,980From current production: 29,000 × $6.10 176,900Total $228,880
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17 - 64©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Total costs accounted for:
Transferred to finished goods:$176,900 + $51,980 $228,880
Work in process ending inventory 10,640
Rounding error 90
Total $239,610
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17 - 65©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Summarize and Assign TotalCosts FIFO (Steps 4 and 5)
Costs to account for $239,610
Work in process ending inventory – 10,640
Transferred to finished goods $228,970