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Job Order Cost System and Process Cost System

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Problem 18-17A Process cost system cost of production report
Hamby Company had 250 units of product in its work in process inventory at the beginning of the period and started 2,000 additional units during the period. At the end of the period, 750 units were in work in process inventory. The ending work in process inventory was estimated to be 60 percent complete. The cost of work in process inventory at the beginning of the period was $3,420, and $27,000 of product costs was added during the period.

Required

Prepare a cost of production report showing the following.
a. The number of equivalent units of production.
b. The product cost per equivalent unit.
c. The total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts.

Exercise 18-7A Job-order cost system:
The following information applies to Job 730 completed by Ritter Manufacturing Company during October 2005. The amount of labor cost for the job was $67,350. Applied overhead amounted to $96,000. The project was completed and delivered to Lancer Company at a contract price of $285,000. Ritter recognized a gross profit of $51,000 on the project.

Required

Determine the amount of raw materials used to complete Job 730.

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Solution Summary

The solution computes the number of equivalent units of production, the product cost per equivalent unit, the total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts for Hamby Company. And also determine the amount of raw materials used to complete Job 730 for Ritter Manufacturing Company.

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