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Cost of goods sold is calculated by adding cost of goods manufactured to beginning nished goods inventory, and then subtracting the ending nished goods inventory. Download free ebooks at bookboon.com Managerial and Cost Accounting Exercises III 8 Problem 2: Worksheet Problem 2 e Print Shop produces custom paintings.
Process Costing Problems PDF Download
Problem # 1:
The Zee manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a month. The company started its manufacturing operation on 1st February, 2018 and costs of production for this month were as follows:
Material Rs. 41,412; Labor Rs. 32,054; FOH Rs. 23,870
The production statistics for the month were as follow:
Units completed and transfer to finished goods store Rs. 6,500
Unit in Process on February 31, 2018 was 1,600 (Material 40%, Labor and FOH 20 per cent)
Requirement: Prepare the Cost of Production Report at the end of February, 2018
Solution:
>> Read theoretical concepts of Process Costing.
Problem # 2:
The Prince Corporation has two production departments and maintains a process cost system. The following is a summary of the cots for the month of December, 2017:
Report form production control department shows as follows:
Solution:
>> Do Practice Process Costing MCQs for more detailed learning.
Problem # 3:
Shah Manufacturing Company engaged in a continuous process, manufacturing a single product which is processed in three departments known as Cleaning, Milling and Finishing. There were no inventories at beginning of the March 2018. Following data is available for preparing Cost of Production Report for three departments:
Solution:
>> Further Practice Functional Budgets Problems and Solutions.
Problem # 4:
Tazeen Ltd. is manufacturing a single product which is being processed in three departments called as Molding, Painting and Finishing. There were no inventories at beginning of the March 2018. Following data is available for preparing Cost of Production Report for three departments:
Solution:
>> Read theoretical concepts of Process Costing.
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