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Materials Cost Accounting in Excel

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Looking for a bit of help with these calculations in an Excel spreadsheet.

The Malbim Company uses a process costing system. Materials are added at the beginning of the process. On July 1 there are 400 units in the beginning inventory that are 100% complete as to materials. With regard to labor and overhead, however, the units in beginning inventory (July 1) are only 75% complete.

During July, 10,000 units were started in production; of these, 7,000 were completed and transferred to the next department. On July 31, the remaining 3,000 units were 20% complete with regard to labor and overhead.

Using the Weighted Average method, calculate the equivalent units of
Direct Materials
Direct Labor and Factory Overhead

Using the FIFO method, calculate the equivalent units of
Direct Materials
Direct Labor and Factory Overhead

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Equivalent units

Materials Direct labor and factory overhead
Beginning work-in-process
400 units X 75% 300 ...

Solution Summary

The following posting discusses the cost of materials for a company.

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Cost Accounting for Pumpkin Bags: Using Excel

I have attached a similar question to the one I am doing to see if I am calculating it correctly and formatting it correctly in excel spread sheet. The attached question has to be formatted in excel spreadsheet and a step by step solution.

Choosing cost drivers, activity-based costing, activity-based management. Pumpkin Bags (PB)
is a designer of high quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year, and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:

Direct materials?purses
Direct materials?backpacks
Direct manufacturing labor?purses
Direct manufacturing labor?backpacks
Plant utilities and administration

Other budget information follows:

Number of bags
Hours of production
Number of batches
Number of designs

1. Identify the cost hierarchy level for each cost category. Required
2. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
3. Calculate the budgeted cost per unit of cost driver for each cost category.
4. Calculate the budgeted total costs and cost per unit for each product line.
5. Explain how you could use the information in requirement 4 to reduce costs.

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