Question
How to prepare production cost report? Shine Company uses a process cost system to account for the costs incurred in making its single product, a
How to prepare production cost report?
Shine Company uses a process cost system to account for the costs incurred in making its single product, a hair conditioner. This product is processed in Department A and then in Department B. Materials are added in both departments. Production for May was as follows:
Department A DepartmentB
Units started or transferred in department A - 200,000 & Department B -160,000 Units completed and transferred out department A - 160,000 & department B - 120,000 Stage of completion of May 31 inventory:
Materials - Department A - 100% Department B - 80%
Conversion - Department A - 50% Department B - 40%
Costs incurred this month:
Direct materials costs Department A - $200,000 & Department B - $304,000
Conversion costs Department A - $540,000 & Department B - $272,000
There was no May 1 inventory in either department.
a.How to create production cost report for Department A in May.
b.how to create production cost report for Department B in May.
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