MA1 2007-2008
PRODUCTION REPORT WORKSHEET
Weighted average method
STEP 1:
Units to be accounted for:
Work in process, beginning
Started into production
Total units
Quantity
Schedule
MODULE 3
Production report:
Weighted average method
Equivalent units
Materials Conversion
Units accounted for:
Completed and transferred out
Work in process, ending
Total units and equivalent units of
production
STEP 2:
Cost to be accounted for:
Work in process, beginning
Cost added in the department
Total cost (a)
Total
Production
Costs
Total costs
Materials Conversion
Equivalent units of production (b)
(Step 1 above)
Cost per equivalent unit (a / b)
STEP 3:
Cost Reconciliation
Cost accounted for as follows:
Transferred to next department:
Equivalent units
Materials Conversion
Total cost of goods completed
Ending work in process:
Materials
Conversion
Total ending work in process
Total cost
-1-
ma1_mod3_handout2.doc
MA1 2007-2008
PRODUCTION REPORT WORKSHEET
MODULE 3
Journal Entries
Direct materials are purchased as needed. What is the journal entry for
direct materials usage in the department?
What is the journal entry for conversion costs?
What is the journal entry to transfer completed goods from the current
department to the next department?
Accounts Payable
WIP current department
Various Accounts
WIP next department
-2-
ma1_mod3_handout2.doc
MA1 2007-2008
PRODUCTION REPORT WORKSHEET
FIFO method
STEP 1:
Units to be accounted for:
Work in process, beginning
Started into production
Total units
Quantity
Schedule
Cost to be accounted for:
Work in process, beginning
Cost added in the department
Total cost (a)
Production report:
FIFO Method
Equivalent units
Materials Conversion
Units accounted for:
Transferred to next department:
From beginning inventory:
Direct materials
Conversion
Started and completed during the
period
Ending inventory
Direct materials
Conversion
Total units and equivalent units of
production
STEP 2:
MODULE 3
Total
Production
Costs
Total costs
Materials Conversion
Equivalent units of production (b)
(Step 1 above)
Cost per equivalent unit (a / b)
(step 3 on the next page)
-3-
ma1_mod3_handout2.doc
MA1 2007-2008
PRODUCTION REPORT WORKSHEET
STEP 3:
Cost Reconciliation
Cost accounted for as follows:
Transferred to next department:
From beginning inventory:
Cost in beginning inventory
Cost to complete these units
Direct materials
Conversion costs
Total cost
Units started and completed this
period
MODULE 3
Equivalent units
Materials Conversion
Total cost transferred
Ending work in process
Materials
Conversion
Total ending work in process
Total cost
What is the journal entry to transfer completed goods from the current
department to the next department?
Accounts Payable
WIP current department
Various Accounts
WIP next department
-4-
ma1_mod3_handout2.doc