Costi di processo https://www.manager.it/default.asp?page=A_contabilita.html

1. Production Report
Production
Report
Helps managers
control their
departments
Provides cost
information for
financial
statements
Shows the flow
of units and costs
through work in
process
Becomes the
job cost sheet
in process
costing

2. Production Report
A computation of
cost per equivalent unit.
A computation of
cost per equivalent unit.
Section 1
Section 2
Section 3
Production Report
A quantity schedule
showing the flow of units
and the computation of
equivalent units.
A quantity schedule
showing the flow of units
and the computation of
equivalent units.

3. Production Report
 A reconciliation of cost
flows for the period,
including:
Total cost for units
completed and
transferred from the
processing department.
Total cost for partially
completed units
remaining in work in
process.
 A reconciliation of cost
flows for the period,
including:
Total cost for units
completed and
transferred from the
processing department.
Total cost for partially
completed units
remaining in work in
process.
Section 1
Section 2
Section 3
Production Report

4. Double Diamond Skis uses process costing to
determine unit costs in its Shaping and Milling
Department.
Double Diamond uses the weighted average
cost procedure.
Using the following information for the month of
May, let’s prepare a production report for
Shaping and Milling.
Double Diamond Skis uses process costing to
determine unit costs in its Shaping and Milling
Department.
Double Diamond uses the weighted average
cost procedure.
Using the following information for the month of
May, let’s prepare a production report for
Shaping and Milling.
Production Report Example

5. Work in process, May 1: 200 units
Materials: 55% complete. $ 9,600
Conversion: 30% complete. 5,575
Production started during May: 5,000 units
Production completed during May: 4,800 units
Costs added to production in May
Materials cost $ 368,600
Conversion cost 350,900
Work in process, May 31: 400 units
Materials 40% complete.
Conversion 25% complete.
Work in process, May 1: 200 units
Materials: 55% complete. $ 9,600
Conversion: 30% complete. 5,575
Production started during May: 5,000 units
Production completed during May: 4,800 units
Costs added to production in May
Materials cost $ 368,600
Conversion cost 350,900
Work in process, May 31: 400 units
Materials 40% complete.
Conversion 25% complete.
Production Report Example

6. Section 1: Quantity Schedule with Equivalent Units
Production Report Example
Units to be accounted for:
Work in process, May 1 200
Started into production 5,000
Total units 5,200
Equivalent units
Materials Conversion
Units accounted for as follows:
Completed and transferred 4,800 4,800 4,800
Work in process, May 31 400

7. Production Report Example
Units to be accounted for:
Work in process, May 1 200
Started into production 5,000
Total units 5,200
Equivalent units
Materials Conversion
Units accounted for as follows:
Completed and transferred 4,800 4,800 4,800
Work in process, May 31 400
Materials 40% complete 160
5,200 4,960
Section 1: Quantity Schedule with Equivalent Units

8. Production Report Example
Units to be accounted for:
Work in process, May 1 200
Started into production 5,000
Total units 5,200
Equivalent units
Materials Conversion
Units accounted for as follows:
Completed and transferred 4,800 4,800 4,800
Work in process, May 31 400
Materials 40% complete 160
Conversion 25% complete 100
5,200 4,960 4,900
Section 1: Quantity Schedule with Equivalent Units

9. Section 2: Compute cost per equivalent unit
Production Report Example
Total
Cost Materials Conversion
Cost to be accounted for:
Work in process, May 1 15,175$ 9,600$ 5,575$
Costs added in the Shipping
and Milling Department 719,500 368,600 350,900
Total cost 734,675$ 378,200$ 356,475$
Equivalent units 4,960 4,900
Cost per equivalent unit

10. Total
Cost Materials Conversion
Cost to be accounted for:
Work in process, May 1 15,175$ 9,600$ 5,575$
Costs added in the Shipping
and Milling Department 719,500 368,600 350,900
Total cost 734,675$ 378,200$ 356,475$
Equivalent units 4,960 4,900
Cost per equivalent unit 76.25$
Production Report Example
Section 2: Compute cost per equivalent unit
$378,200 ÷ 4,960 units = $76.25

11. Total
Cost Materials Conversion
Cost to be accounted for:
Work in process, May 1 15,175$ 9,600$ 5,575$
Costs added in the Shipping
and Milling Department 719,500 368,600 350,900
Total cost 734,675$ 378,200$ 356,475$
Equivalent units 4,960 4,900
Cost per equivalent unit 76.25$ 72.75$
Total cost per equivalent unit = $76.25 + $72.75 = $149.00
Production Report Example
$356,475 ÷ 4,900 units = $72.75
Section 2: Compute cost per equivalent unit

12. Section 3: Cost Reconciliation
Production Report Example
Total Equivalent Units
Cost Materials Conversion
Cost accounted for as follows:
Transferred out during May 4,800 4,800
Work in process, May 31:
Materials 160
Conversion 100
Total work in process, May 31
Total cost accounted for

13. Total Equivalent Units
Cost Materials Conversion
Cost accounted for as follows:
Transferred out during May 715,200$ 4,800 4,800
Work in process, May 31:
Materials 160
Conversion 100
Total work in process, May 31
Total cost accounted for
4,800 units @ $149.00
Production Report Example
Section 3: Cost Reconciliation

14. Total Equivalent Units
Cost Materials Conversion
Cost accounted for as follows:
Transferred out during May 715,200$ 4,800 4,800
Work in process, May 31:
Materials 12,200 160
Conversion 7,275 100
Total work in process, May 31 19,475
Total cost accounted for 734,675$
160 units @ $76.25
Production Report Example
Section 3: Cost Reconciliation
All costs
accounted for
100 units @ $72.75