Case on Process Costing) (submit as handwritten) Examples on Process Costing ) FIFO method The mixing department in COBE Company is using Process costing system, the following information related to department: Production: Units in Process, August 1, 60% completion 20,000 Units completed and transferred out 40,000 Units in process, August 31, 35% completion 10,000 Costs: Work- in process, Aug 1: Direct Mat. $ 30,000 Conversion Costs 3,000 Total WIP 33,000 Current costs: Direct Mat. 50,000 Conversion Costs 4,000 Total current costs 54,000 (Note: Direct Mat. Is added at the beginning of production) Using First in First out (FIFO) method: Prepare physical flow schedule. Calculate the Equivalent Units Compute the Unit Cost Calculate the Cost of ending work in process:, and Cost of goods completed.

3.Unit direct material cost= Unit conversion cost=

total Unit cost=

4. Costs accounted for: Units transferred out: Units, Beg. WIP: From prior period From current period Units Started and completed End. WIP: DM Conv. Cost Total costs accounted for