Following Are Production Data for a Process Costing System

question 121

Essay

Following are production data for a process costing system:
Beginning work in process, 30% complete 12,000 units
Started 90,000
Ending work in process, 70% complete 8,000
Costs:
Beginning work in process:
Direct Materials $ 28,800
Conversion costs 5,220
Materials used during the period 216,000
Conversion costs incurred during the period 139,200
a)Using the FIFO basis, prepare a process costing report.
b)Write out the journal entries for the costs incurred and the work performed this period under the FIFO method.

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Definitions:

Business Planning Process

A formal strategy to set goals, determine the resources needed to achieve these goals, and outline the plan for executing the activities.

Budgets

Estimates of income and expenditure for a set period of time, serving as a financial plan for individuals or organizations.

Managerial Value

The value or impact that effective managerial decisions have on the overall success and valuation of a company.

Planning Process

A systematic series of steps taken by organizations or individuals to achieve desired goals.