Prepare production cost reports using the weighted average and FIFO methods of process costing with the data below. You may use the template available on Blackboard, modify the template, or create your own design. If you use the template, delete any unused worksheets.
Use the Individual Input Information worksheet to calculate the numbers to use in your production cost reports. Type these numbers in your input section. You should have only formulas or cell references in your output area (the production cost reports). I will deduct points for typed or hardcoded numbers anywhere except the given information in the input worksheet.
Create a summary table in the input worksheet with the following information referenced from the production cost reports.
|What is the total cost to be accounted for?|
|What is the conversion cost per equivalent unit?|
|Calculate the conversion cost per equivalent unit in the PREVIOUS period under FIFO.||N/A|
|How much cost will you transfer to the next WIP department?|
|What is the value of materials in beginning inventory at the start of NEXT month for the current process department?|
Answer the following questions in a separate worksheet. Create a formatted table with the questions in one column and the answers in a separate column. Expand the columns and wrap the text to make the information easy to read. Do not merge columns.
- Describe at least three ways that process costing and job costing differ.
- Describe at least two ways that weighted average and FIFO process costing methods differ.
- What is the purpose of a production cost report?
- Describe the concept of an equivalent unit and how to compute equivalent units.
Check the accessibility of your spreadsheet by typing “Accessibility Checker” in the “Tell me what you want to do” search. Make all identified corrections. Do this for each worksheet in your workbook. Save your Excel file with the name, “Last name First initial PC”.