# Cost of Production Report (CPR) Questions and Answers

### Reviewed by Subject Matter Experts

Updated on March 27, 2023

## Question 1

The MST Manufacturing Company produces one product that passes through a single process in a manufacturing cycle lasting approximately 18 days.

Therefore, there will generally be some work-in-process inventories at the end of each month.

After MST started its manufacturing operations on 1 January, the costs of production for the rest of the month are given as follows:

 Materials \$41,412 Labor \$32,054 Factory Overhead \$24,552

The production statistics for the month were:

 Units completed and transferred to finished goods store 6,500 Units in process (materials 40% and labor and overhead 25%) 1,600

Required: Prepare a statement showing the equivalent production quantity for the month in terms of materials, labor, and factory overhead. Also, prepare a cost of production report.

### Solution

MTS Manufacturing Company Cost of Production Report For the month of January 20xx

Working

## Question No. 2

The Tuttni Corporation manufactures one product that passes through two manufacturing departments. Production and manufacturing costs for the month of April were as follows:

Required: Using the process costing system, prepare a cost of production report for the month.

### Solution

Tuttni Corporation Cost of Production Report For the Month of April 20xx

W.I.P ending inventory:

Computation

Equivalent/Effective production

Department I

Materials = 9,400 + 600 x 50/100 = 9,700 units

Labor = 9,400 + 600 x 50/100 = 9,700 units

FOH = 9,400 + 600 x 50/100 = 9,700 units

Department II

Materials = 9,400 + 0 = 9,400 units

Labor = 9,400 + 0 = 9,400 units

FOH = 9,400 + 0 = 9,400 units