Cost Accounting

NSU Printing, Inc. produces three types of textbooks: ACCT, BADM, and MIS. The textbooks have to go through three different departments: Printing, Binding, and Packaging. Since each textbook is different, the Printing department uses Job Costing to account for the costs of each type of textbook. Once the textbooks are printed, they are sent to the Binding department where all textbooks are bound as part of a continuous process. The Binding department uses the Weighted Average method of Process Costing as it is not interested in knowing the differences between current period and prior period costs. From the Binding Department, the textbooks are transferred to the Packaging department where they are packaged and prepared for bulk shipment to large bookstores. The Packaging department keeps track of its current period costs by separating them from the prior period costs and therefore uses First-In, First-Out method of Process Costing. Printing Department: At the start of September, the Printing department estimated total overhead costs of $500,000. Since each textbook consumes equal amount of printing overheads, the Printing department allocates the overhead costs using a predetermined overhead rate based on the number of textbooks printed. The estimated number of textbooks to be printed in September was set at 147,500 textbooks. The following data relates to the Printing department activities during September ACCT BADM MIS 84.000 42,000 Actual number of textbooks printed in September 14,000 Beginning Work-in-Process S 125,000 S - Direct Materials $ 170,847 S 42,712S 4,746 Direct Labor $ 177,240S 88,620 $ 29,540 Actual overheads for Printing department amounted to $412,124 during September. The Printing department allocates any under or over applied overheads to Cost of Goods Transferred Out if they are less than 10% of the Cost of Goods Transferred Out. If the under or over applied overheads are greater than 10% of Cost of Goods Transferred Out, then they are applied proportionally to Cost of Goods Transferred Out, Work-in- Process Inventory, and Finished Goods Inventory based on their balances at the end of the period. At the end of September, Cost of Goods Transferred Out, Work-in-Process Inventory, and Finished Goods Inventory had the following balances: Allocation of Under (Over) applied Overheads: Balance at the end of September Cost of Goods Transferred Out $ 592,969 Work-in-Process Inventory $ 98,828 Finished Goods Inventory $ 296,484 Prepare a Job Costing worksheet in MS Excel for the Printing department that calculates the following: Predetermined overhead rate Total costs of printing each type of textbook during September Total costs of Direct Materials, Direct Labor, and Applied Overhead incurred by the Printing department during September Printing cost per unit for each type of textbook printed during September Schedule for allocation of under (over) application of overheads See the sample Job Costing worksheet of InShape, Inc. from Chapter 7 attached to the dropbox Binding Department: At the start of October, the Binding department had work-in-process inventory of 24,000 textbooks made up of the following: Beginning Balances Amount Prior Department $169,420 Materials $16,942 Direct Labor $50,826 Overheads $101,652 During October, the Binding department received 84,000 units from the Printing department with a cost of $592,969. The Binding department added the following costs during October Amount Materials $59,297 Direct Labor $177,891 Overheads S355,781 At the end of October, the Binding department finished 100,000 textbooks and transferred them to the Packaging department. The degree of completion of the work-in- process inventory left unfinished at the end of October was as follows: Degree of Completion Materials Direct Labor Overheads 35% Prepare a production cost report in MS Excel using the weighted Average method consisting of the following: Units to be accounted for Units accounted for Costs to be accounted for Cost per equivalent units Costs accounted for See the sample production cost report of Kansas Supplies from Problem 8-48 of Chapter 8 attached to the dropbox. Packaging Department: At the start of November, the Packaging department had work-in-process inventory of 10,000 textbooks made up of the following: Degree of Completion Beginning Balances Amount 100% Prior Department $143.860 90% Materials $43,158 75% Direct Labor $14,386 60% Overheads $86,316 During November, the Binding department received 100,000 units from the Printing department with a cost of $1,438,595. The Binding department added the following costs: Amount Materials $431.579 Direct Labor $143,860 Overheads $863,157 At the end of November, the Packaging department finished 107,000 textbooks and transferred them to the Shipping department. The degree of completion of the work-in- process inventory left unfinished at the end of November was as follows: Degree of Completion Materials 80% Direct Labor 70% Overheads 45% Prepare a production cost report using the First-in. First-Out method consisting of the following: Units to be accounted for Units accounted for Costs to be accounted for Cost per equivalent units Costs accounted for See the sample production cost report of Kansas Supplies from Problem 8-49 of Chapter 8 attached to the dropbox. A template is provided (as an attachment to the dropbox) for your convenience. InShape, Inc. Job Order Costing September 30, 2017 Estimated Overheads Estimated Allocation Base Direct Labor Cost Predetermined Overhead Rate 12-03 01-01 01-02 Total JOBS Allocation Base $ . Beginning Balance Direct Materials Direct Labor Overheads Applied Actual Overheads Under(over applied Overheads % of Cost of Goods Sold Allocation Proportion Adjustment Amount Adjusted Balance Balance Allocation of Underover)applied Overheads Cost of Goods Sold Work-in-Process Inventory Finished Goods Inventory KANSAS SUPPLES Proceso Costing (Weighted Average) October 30, 2017 Equivalent Unit ALOW OF PRODUCTION UNITS: * Physical Unit Prior * Department Complete Materiale Complete Labor Complete Overheado complete Units to be accoted for. Beginning WP inventory Units started this period Total units b account for Unite accounted for. Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Units in ending inventory Total units accounted for Tot Cost. COSTS Costa to be accoted for. Costs in beginning WP inventory Current period costs Total costs b be accounted for Cost per equivalent it Prior department Materials Labar Overhead Costa accounted for Costs assigned bunits transferred out Prior department Materials Labor Overhead Total costs of units transferred out Costs assigned bending WP inventory Prior department Materials Labor Overhead Total ending WP inventory Total cost accounted for KANSAS SUPPLES Process Coating (Firsth, First Out) November 30, 2017 Equivalent ALOW OF PRODUCTION UNITS: Physical Uit Prior Department Complete Material Complete Labor Complete Overheads Complete Uribe to be accounted for. Beginning WP inventory Units started this period Total units b account for Units accoted for Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Unitsin ending inventory Total units accounted for COSTS Total Costa Cost to be accounted for. Costs in beginning WP inventory Current period costs Total costs b be accounted for Cost per equivalent it Prior department Materials Labor Overhead Costa accoted for. Costs assigned b units transferred out Costs from beginning WP inventory Current costs b complete beginning WP inventory Prior department Materials Labor Overhead Total costs from beginning WP inventory Current costs of units started and completed: Prior department Materials Labor Overhead Total costs of units started and completed Total costs of units transferred out Costs assigned b ending WP inventory Prior department Materials Labor Overhead Total ending WP inventory Total costa accosted for - $ NSU Printing, Inc. produces three types of textbooks: ACCT, BADM, and MIS. The textbooks have to go through three different departments: Printing, Binding, and Packaging. Since each textbook is different, the Printing department uses Job Costing to account for the costs of each type of textbook. Once the textbooks are printed, they are sent to the Binding department where all textbooks are bound as part of a continuous process. The Binding department uses the Weighted Average method of Process Costing as it is not interested in knowing the differences between current period and prior period costs. From the Binding Department, the textbooks are transferred to the Packaging department where they are packaged and prepared for bulk shipment to large bookstores. The Packaging department keeps track of its current period costs by separating them from the prior period costs and therefore uses First-In, First-Out method of Process Costing. Printing Department: At the start of September, the Printing department estimated total overhead costs of $500,000. Since each textbook consumes equal amount of printing overheads, the Printing department allocates the overhead costs using a predetermined overhead rate based on the number of textbooks printed. The estimated number of textbooks to be printed in September was set at 147,500 textbooks. The following data relates to the Printing department activities during September ACCT BADM MIS 84.000 42,000 Actual number of textbooks printed in September 14,000 Beginning Work-in-Process S 125,000 S - Direct Materials $ 170,847 S 42,712S 4,746 Direct Labor $ 177,240S 88,620 $ 29,540 Actual overheads for Printing department amounted to $412,124 during September. The Printing department allocates any under or over applied overheads to Cost of Goods Transferred Out if they are less than 10% of the Cost of Goods Transferred Out. If the under or over applied overheads are greater than 10% of Cost of Goods Transferred Out, then they are applied proportionally to Cost of Goods Transferred Out, Work-in- Process Inventory, and Finished Goods Inventory based on their balances at the end of the period. At the end of September, Cost of Goods Transferred Out, Work-in-Process Inventory, and Finished Goods Inventory had the following balances: Allocation of Under (Over) applied Overheads: Balance at the end of September Cost of Goods Transferred Out $ 592,969 Work-in-Process Inventory $ 98,828 Finished Goods Inventory $ 296,484 Prepare a Job Costing worksheet in MS Excel for the Printing department that calculates the following: Predetermined overhead rate Total costs of printing each type of textbook during September Total costs of Direct Materials, Direct Labor, and Applied Overhead incurred by the Printing department during September Printing cost per unit for each type of textbook printed during September Schedule for allocation of under (over) application of overheads See the sample Job Costing worksheet of InShape, Inc. from Chapter 7 attached to the dropbox Binding Department: At the start of October, the Binding department had work-in-process inventory of 24,000 textbooks made up of the following: Beginning Balances Amount Prior Department $169,420 Materials $16,942 Direct Labor $50,826 Overheads $101,652 During October, the Binding department received 84,000 units from the Printing department with a cost of $592,969. The Binding department added the following costs during October Amount Materials $59,297 Direct Labor $177,891 Overheads S355,781 At the end of October, the Binding department finished 100,000 textbooks and transferred them to the Packaging department. The degree of completion of the work-in- process inventory left unfinished at the end of October was as follows: Degree of Completion Materials Direct Labor Overheads 35% Prepare a production cost report in MS Excel using the weighted Average method consisting of the following: Units to be accounted for Units accounted for Costs to be accounted for Cost per equivalent units Costs accounted for See the sample production cost report of Kansas Supplies from Problem 8-48 of Chapter 8 attached to the dropbox. Packaging Department: At the start of November, the Packaging department had work-in-process inventory of 10,000 textbooks made up of the following: Degree of Completion Beginning Balances Amount 100% Prior Department $143.860 90% Materials $43,158 75% Direct Labor $14,386 60% Overheads $86,316 During November, the Binding department received 100,000 units from the Printing department with a cost of $1,438,595. The Binding department added the following costs: Amount Materials $431.579 Direct Labor $143,860 Overheads $863,157 At the end of November, the Packaging department finished 107,000 textbooks and transferred them to the Shipping department. The degree of completion of the work-in- process inventory left unfinished at the end of November was as follows: Degree of Completion Materials 80% Direct Labor 70% Overheads 45% Prepare a production cost report using the First-in. First-Out method consisting of the following: Units to be accounted for Units accounted for Costs to be accounted for Cost per equivalent units Costs accounted for See the sample production cost report of Kansas Supplies from Problem 8-49 of Chapter 8 attached to the dropbox. A template is provided (as an attachment to the dropbox) for your convenience. InShape, Inc. Job Order Costing September 30, 2017 Estimated Overheads Estimated Allocation Base Direct Labor Cost Predetermined Overhead Rate 12-03 01-01 01-02 Total JOBS Allocation Base $ . Beginning Balance Direct Materials Direct Labor Overheads Applied Actual Overheads Under(over applied Overheads % of Cost of Goods Sold Allocation Proportion Adjustment Amount Adjusted Balance Balance Allocation of Underover)applied Overheads Cost of Goods Sold Work-in-Process Inventory Finished Goods Inventory KANSAS SUPPLES Proceso Costing (Weighted Average) October 30, 2017 Equivalent Unit ALOW OF PRODUCTION UNITS: * Physical Unit Prior * Department Complete Materiale Complete Labor Complete Overheado complete Units to be accoted for. Beginning WP inventory Units started this period Total units b account for Unite accounted for. Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Units in ending inventory Total units accounted for Tot Cost. COSTS Costa to be accoted for. Costs in beginning WP inventory Current period costs Total costs b be accounted for Cost per equivalent it Prior department Materials Labar Overhead Costa accounted for Costs assigned bunits transferred out Prior department Materials Labor Overhead Total costs of units transferred out Costs assigned bending WP inventory Prior department Materials Labor Overhead Total ending WP inventory Total cost accounted for KANSAS SUPPLES Process Coating (Firsth, First Out) November 30, 2017 Equivalent ALOW OF PRODUCTION UNITS: Physical Uit Prior Department Complete Material Complete Labor Complete Overheads Complete Uribe to be accounted for. Beginning WP inventory Units started this period Total units b account for Units accoted for Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Unitsin ending inventory Total units accounted for COSTS Total Costa Cost to be accounted for. Costs in beginning WP inventory Current period costs Total costs b be accounted for Cost per equivalent it Prior department Materials Labor Overhead Costa accoted for. Costs assigned b units transferred out Costs from beginning WP inventory Current costs b complete beginning WP inventory Prior department Materials Labor Overhead Total costs from beginning WP inventory Current costs of units started and completed: Prior department Materials Labor Overhead Total costs of units started and completed Total costs of units transferred out Costs assigned b ending WP inventory Prior department Materials Labor Overhead Total ending WP inventory Total costa accosted for - $