Posted: May 3rd, 2016

Prepare a process cost report for June?

The following information is available for ABC Company for the first month of the year.

Revenues $20,000
Expenses $ 7,500
Increase in accounts receivable $500
Increase in inventory $ 1,100
Decrease in supplies $ 300
Decrease in accounts payable $ 1,600
Decrease in wages payable $ 850
Depreciation expense $ 2,230

Determine the cash flow from operating activities.
I need assistance with the “Units Completed and Transferred out (Cost of Goods Manufactured)”.

1. Data for Osaka Corporation for the month of June 20xx are as follows:
Beginning work in process inventory: Operations for the month of June:
Units – 800 Units started- 14,000
Direct materials – 100% complete Direct materials costs – $57,400
Conversion costs – 70% complete Conversion costs – $50,122
Direct materials costs – $2,860 Conversion costs – $2,150
Ending work in process inventory:
Units – 1,500
Direct materials – 100% complete
Conversion costs – 30% complete

Assume the company uses average costing method.
Prepare a process cost report for June.

a.
Osaka Corporation
Process Cost Report: Average Costing Method
For the Month Ended June 30, 20xx

[See attachment parts 1 & 2.]

2. n’2. Plastics, Inc., manufactures a line of office desk accessories. The company’s newest and most popular product is a plastic paper holder for holding the paper up while working at the computer. Production began on February 1, 20xx. Plastic is poured into molds to form the product, and the entire process takes place in the Molding Department. After the liquid plastic is poured (signifying the beginning of the process), the molds must be cooled slowly before the paper holder is separated from the mold. Statistics for 20xx are shown below.