A finished ACC-360 Topic 3 production cost report example, balancing a mixing department's gallons, counting equivalent units separately for materials and conversion and assigning every dollar of the month's cost. Searches like "acc 360 topic 3 assignment example", "acc360 topic 3 sample" and "acc-360 topic 3 example" land here.
What a finished ACC-360 Topic 3 production cost report looks like
The finished report accounts for gallons first and dollars second. In the illustrative month, 2,000 gallons were in process at the start and 18,000 were started, while 16,000 were transferred to canning and 4,000 remain in the tanks. Pigment and base are added at the start, so the unfinished gallons are complete for materials, but they are only a quarter of the way through mixing and testing. Under the weighted-average method that gives 20,000 equivalent units for materials and 17,000 for conversion. Materials cost of $100,000 comes to $5.00 per equivalent unit and conversion of $68,000 to $4.00. The 16,000 gallons transferred carry $144,000, the ending tanks carry $24,000, and the two together equal the $168,000 the department had to account for.
How an ACC-360 Topic 3 example is structured
The report follows the usual four-part layout, and the example says what each part proves. Its opening schedule balances gallons in against gallons out, 20,000 each way, before any cost is considered. Equivalent units are computed next, separately for materials and for conversion, with the completion percentage of the ending tanks stated and its source named, a supervisor's estimate at month end. The costs to account for are then gathered, beginning inventory plus the month's additions, and divided by the equivalent units. The final schedule assigns costs to the gallons transferred and to the ending inventory and checks that the two sum to the total. A short commentary follows the schedules. It shows what would happen if the ending tanks were counted as finished: conversion cost per unit would fall to $3.40 and $9,600 would shift out of the gallons sent to canning and into the tanks.
Gallons balanced before dollars
The physical schedule shows 20,000 gallons to account for and 20,000 accounted for, so any later cost error cannot hide behind a units error.
Two completion percentages, not one
The ending tanks are complete for materials and a quarter complete for conversion, and each cost category gets its own equivalent unit count.
The completion estimate sourced
The quarter-complete figure comes from the mixing supervisor's month-end estimate, and the report names it because every unit cost below depends on it.
Costs that tie to the total
Transferred cost of $144,000 and ending inventory of $24,000 add back to $168,000, which is the proof that the assignment neither created nor lost cost.
The miscount shown in dollars
Treating the unfinished tanks as complete moves $9,600 from canning into ending inventory, which puts a size on the most common error in the method.
Where marks go in ACC-360 Topic 3
Miscounting equivalent units costs more marks here than anything else, and the usual form is applying one completion percentage to both materials and conversion. Paint whose pigment is added at the start is fully complete for materials whatever its stage of mixing, so a single percentage undercounts one category or overstates the other. Reports that skip the physical flow schedule lose the check that catches a units error before it becomes a cost error. Unit costs computed by dividing total cost by gallons completed, ignoring the ending tanks, charge all the month's work to finished paint. A cost assignment that does not add back to the total has lost or invented money, which is visible in one line of arithmetic. Completion percentages given with no source make every figure after them impossible to evaluate.
Get an ACC-360 Topic 3 example written to your instructions
Send the ACC-360 Topic 3 instructions and the rubric your classroom posts, with the department's units, completion data and costs from your case. We prepare a custom example to those criteria, with physical units balanced, equivalent units counted by cost category, the completion source named and every dollar assigned and tied back, in 24 to 48 hours. The first request costs nothing.
ACC-360 Topic 3 questions, answered
Why are materials and conversion counted separately?
Because they enter the process at different points. In this department pigment and base go in at the start, so an unfinished gallon already holds all its materials, while mixing, testing and labor accumulate as the batch moves toward completion. Counting both with one percentage assumes they enter together, which is rarely true. The instructions usually state when materials are added, and that sentence decides the materials count.
Weighted average or FIFO?
Whichever the assignment names. Weighted average blends the cost already in beginning inventory with the month's cost, which is simpler and works well when prices are stable. FIFO keeps the two apart and reports the current month's cost on its own, which is more useful for judging this month's performance. Later topics in many sections compare the two directly, so knowing which one a report uses matters.
Where does the completion percentage come from?
In practice, from somebody on the floor estimating how far through the process the unfinished work has progressed, often by stage reached or time elapsed. In coursework it is usually supplied. Either way, it is an estimate, and because it drives the conversion count and every unit cost after it, a careful report names its source and notes how much a different estimate would move the result.