Process Costing Packaging Department

Direct materials are added 90% at the beginning of the process and the remaining 10% are added when the cookies are 80% 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	24,000 (80% complete)	$171,000	$21,200	$20,167.60	$1382.40
Transferred In	420,000	$3,345,480
End WIP	26,000 (75% complete)

Added during Qtr 2:

Direct Materials -- $402,544

Direct Labor 26,000 hrs @ $18.50 per hour

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

1. Determine the number of units completed during quarter 2.

1. Compute the equivalent units using the weighted average method.

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

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

1. Compute the ending balance in WIP, Packaging

Table 9 Actual Results (calculate revenue and COGS)

Units sold	Sales Price	Revenue
Units sold	Cost per unit	COGS

Table 10 DM Variances (filling only)

Price Variance
Usage Variance
Total Variance

Calculations:

Table 11 Direct Labor Variances

Rate Variance
Efficiency Variance
Total Variance

Calculations:

#12 Accept or Reject Special Order? Why?

Table 13 Actual OH cost for Quarter 2

Description	Cost
Indirect Materials	$32,400
Indirect Labor	$37,000
Machine Maintenance	$17,400
Electricity	$18,200
Depreciation	$24,300
Quality Testing	$43,820

Amount of applied OH:

Amount of actual OH:

Under or Over- Applied Amount:

New COGS amount: