note for process csting_std costs

# There are two main parts costs relating to units

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there are two main parts costs relating to units completed and transferred out, and costs in ending WIP. -The cost for the units completed and transferred out units = # of units completed x the combined std cost for DM and CC . -The costs for units in ending WIP = of EU’s in ending inventory for each of DM CC x the standard costs per unit for DM and CC. Note: \$ amounts for Beginning WIP and Costs added this period do not need to be given in the question. They can be calculated as long as the related number of units, and the standard cost per unit for DM and CC, are given. Example : Assume a company has one processing department, Assembly. The units move from Assembly to Finished Goods. The standard costs for Assembly are DM, \$74/unit; CC \$54/unit 225 units were in Beginning WIP (100% complete for DM; 60% complete for CC) Costs in Beginning WIP were \$16,650 for DM; \$7,290 for CC (this info may be calculated instead of given) Units started this period , 275; Actual costs added this period were DM, \$19,800; CC \$16,380 (the \$ amounts may be calculated instead of given) Ending WIP was 100 units, 100% complete re DM; 50% complete re CC.

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Required : Complete the Production Report and related Journal Entries PRODUCTION REPORT - ASSEMBLY DEPARTMENT Units to Account For WIP, beginning 225 (DM 100% complete; CC 60% complete) Started this period 275 500 Units Accounted for as Follows Total DM CC Completed this period: (0 x \$74) (225 x .4) -from beginning WIP 225 0 90 (EU’s to complete ) -from units started this period 175 (plug) 175 175 Total units completed 400 (100 x 1.00) (100 x .5) WIP, ending 100 100 50 EU’s 500 275 315 Costs to Account For From beginning WIP (given) WIP - Assembly DM 225 x 1.00 x \$74 \$16,650 \$23,940 CC 225 x .6 x \$54 \$ 7,290 \$ 23 ,940 20,350 17,010 51,200 For Costs added this period DM 275 x \$74 \$20,350 \$10,100 CC 315 x \$54 17,010 \$37,360
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