Process Costing Packaging Department

Direct materials are added 70% at the beginning of the process and the remaining 30% are added when the chips are 50% complete with the packaging process. Direct labor and overhead are added evenly throughout the process.

Table 8 Unit and cost information

		Cost
	Physical Units	Transferred-in	Direct Materials	Direct Labor	Overhead
Beg WIP	1,000 (40% complete)	$2,450	$110.40	$165	$141.44
Transferred In	30,000	$73,500
End WIP	2,200 (30% complete)

Added during Qtr 1:

Direct Materials -- $4,835.02

Direct Labor 1,580 hrs @ $8.10 per hour

Overhead OH is applied based on predetermined OH rate and actual DL hours

1. Determine the number of units completed during quarter 1.

2. Compute the equivalent units using the weighted average method

3. Compute the cost per equivalent unit using the weighted average method

4. Compute the cost of goods transferred to finished goods inventory

5. Compute the ending balance in WIP, Packaging

Table 10 Actual Results (calculate revenue and COGS)

Units sold	Sales Price	Revenue
Units sold	Cost per unit	COGS

Table 11 DM Variances (potatoes only)

Price Variance
Usage Variance
Total Variance

Calculations:

Table 12 Direct Labor Variances

Rate Variance
Efficiency Variance
Total Variance

Calculations:

#13 Calculations (Minimum price on special order)

Table 14 Actual OH cost for Quarter 1

Description	Cost
Indirect Materials	$1,750
Indirect Labor	$15,000
Machine Maintenance	$1,416.20
Electricity	$1,235.75
Depreciation	$1,050
Quality Testing	$4,615

Amount of applied OH:

Amount of actual OH:

Under or Over- Applied Amount:

New COGS amount: