# ASSESSMENT PROBLEM COST OF PRODUCTION REPORT 1 Todd’s Garden Company manufactures a fertilizer known as Great Garden. The manufacturing process begins in the Grading Department when raw materials are started in process. Upon completion of processing in the Grading Department, the output is transferred to the Saturating Department for the final phase of production. Here the product is saturated with water and then dried again. There is no weight gain in the process, and the water is free. The following information is available for the month of February. February 1 February 28 Work–in-Process Inventories: Quantity in pounds Cost Quantity in pounds Grading Department None \$0 None Saturating Department 1,000 \$54,000* 5,000*Includes \$4,000 in Saturating Department conversion costs.The work-in-process inventory in the Saturating Department is estimated to be 50% complete both at the beginning and end of February. Costs of production for February are as follows:Costs of Production Materials Used Conversion Grading Department \$280,000 \$80,000 Saturating Department \$0 \$34,500 The material used in the Grading Department weighed 40,000 pounds. INSTRUCTIONS:Prepare a Production report for the Grading Department and for the Saturating Department. 2. Cost AccountingACC221PROCESS COSTING COMPUTATIONSSouth River Chemical manufactures a product called Zbek. Direct Materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending inventory work-in-process inventory is 20% complete. The following data pertain to May UNITS Work in Process, May 1 15,000 Units started during May 60,000 Units completed and transferred out 68,000 Work in Process, May 31 7,000 TOTAL DIRECT CONVERSION MATERIALS COSTS Costs:Work in Process, May 1 \$41,250 \$16,500 \$24,750 Costs incurred during May 234,630 72,000 162,630 Totals \$275,880 \$88,500 \$187,380 Compute the following amounts: 1. Using the weighted-average method of process costing, determine the equivalent units for direct material and conversion. 2. What is the cost per unit if direct materials and conversion activity?3. Determine the cost of the goods completed and transferred during May. 4. Determine the cost of the ending work-in-process on May 31

ASSESSMENT PROBLEM COST OF PRODUCTION REPORT 1

Todd’s Garden Company manufactures a fertilizer known as Great Garden. The manufacturing process begins in the Grading Department when raw materials are started in process. Upon completion of processing in the Grading Department, the output is transferred to the Saturating Department for the final phase of production. Here the product is saturated with water and then dried again. There is no weight gain in the process, and the water is free.

The following information is available for the month of February.
February 1 February 28 Work–in-Process Inventories: Quantity in pounds Cost Quantity in pounds Grading Department None \$0 None Saturating Department 1,000 \$54,000* 5,000*Includes \$4,000 in Saturating Department conversion costs.The work-in-process inventory in the Saturating Department is estimated to be 50% complete both at the beginning and end of February. Costs of production for February are as follows:Costs of Production Materials Used Conversion Grading Department \$280,000 \$80,000 Saturating Department \$0 \$34,500 The material used in the Grading Department weighed 40,000 pounds.

INSTRUCTIONS:Prepare a Production report for the Grading Department and for the Saturating Department.

2. Cost AccountingACC221PROCESS COSTING COMPUTATIONSSouth River Chemical manufactures a product called Zbek. Direct Materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending inventory work-in-process inventory is 20% complete. The following data pertain to May UNITS Work in Process, May 1 15,000 Units started during May 60,000 Units completed and transferred out 68,000 Work in Process, May 31 7,000 TOTAL DIRECT CONVERSION MATERIALS COSTS Costs:Work in Process, May 1 \$41,250 \$16,500 \$24,750 Costs incurred during May 234,630 72,000 162,630 Totals \$275,880 \$88,500 \$187,380 Compute the following amounts:

1. Using the weighted-average method of process costing, determine the equivalent units for direct material and conversion.

2. What is the cost per unit if direct materials and conversion activity?3. Determine the cost of the goods completed and transferred during May.

4. Determine the cost of the ending work-in-process on May 31