Beruflich Dokumente
Kultur Dokumente
True/False
1.
T
Easy
2.
F
Easy
XXX
XXX
3.
T
Hard
4.
F
Easy
In process costing, the same equivalent units figure is used for both
materials and conversion costs.
5.
F
Hard
(Appendix) The cost per equivalent unit for conversion costs will
always be the same under both the FIFO and the weighted-average
methods if there is no ending work in process inventory.
6.
T
Medium
(Appendix) The cost per equivalent unit for conversion costs will
always be the same under both the FIFO and the weighted-average
methods if there is no beginning work in process inventory.
7.
F
Medium
ManagerialAccounting,9/e
89
8.
T
Medium
9.
T
Easy
(Appendix) Under the FIFO process costing method, the equivalent units
of production in the production report relate only to work done during
the current period.
10.
F
Medium
(Appendix) The cost per equivalent unit under the FIFO method of
process costing is equal to the cost of beginning work in process
inventory plus the costs added during the period, all divided by the
equivalent units of production for the period.
11.
F
Medium
12.
T
Medium
13.
T
Easy
14.
T
Easy
15.
F
Easy
Multiple Choice
16.
C
Hard
ManagerialAccounting,9/e
90
17.
D
Hard
CPA
adapted
18.
B
Hard
19.
C
Medium
20.
A
Easy
21.
B
Hard
ManagerialAccounting,9/e
91
22.
D
Medium
CMA
adapted
Materials
Cost
P 3,000
P25,560
ManagerialAccounting,9/e
92
24.
A
Medium
Units
24,000
86,000
19,000
Percentage
complete
40%
20%
ManagerialAccounting,9/e
93
26.
D
Hard
27.
B
Medium
The following data were taken from the accounting records of the Hazel
Corporation which uses the weighted-average method in its process
costing system:
Beginning work in process inventory
(100% complete as to materials;
70% complete as to conversion) ............. 30,000 units
Started in process during the period .......... 90,000 units
Ending work in process inventory
(100% complete as to materials;
60% complete as to conversion) ............. 20,000 units
The equivalent units of production for conversion costs was:
a. 102,000 units.
b. 112,000 units.
c. 111,000 units.
d. 100,000 units.
28.
B
Medium
ManagerialAccounting,9/e
94
29.
C
Medium
Units
6,300
65,600
4,600
Percentage
complete
10%
70%
Units
7,100
61,000
4,600
Percentage
complete
70%
30%
The Fitting Department's production report indicates that the cost per
equivalent unit for conversion cost for March was P8.24.
How much conversion cost was assigned to the units transferred out
of the Fitting Department during March?
a. P482,287.20
b. P502,640.00
c. P523,240.00
d. P561,144.00
ManagerialAccounting,9/e
95
31.
B
Medium
32.
B
Easy
The Assembly Department started the month with 35,000 units in its
beginning work in process inventory. An additional units 472,000 were
transferred in from the prior department during the month to begin
processing in the Assembly Department. There were 34,000 units in the
ending work in process inventory of the Assembly Department. How many
units were transferred to the next processing department during the
month?
a. 507,000
b. 473,000
c. 471,000
d. 541,000
33.
A
Medium
CPA
adapted
Number
of units
30,000
80,000
85,000
25,000
Cost of
materials
P11,000
P36,000
All materials are added at the beginning of the process. The cost per
equivalent unit for materials is closest to:
a. P0.43.
b. P0.45.
c. P0.55.
d. P0.59.
ManagerialAccounting,9/e
96
34.
D
Medium
35.
A
Medium
Units
2,700
Percentage
complete
80%
57,000
50,300
9,400
20%
The accounting records indicate that the conversion cost that had been
assigned to beginning work in process inventory was P10,973 and a
total of P268,107 in conversion costs were incurred in the department
during January.
What was the cost per equivalent unit for conversion costs for
January in the Molding Department? (Round off to three decimal
places.)
a. P5.348
b. P4.038
c. P5.080
d. P4.704
ManagerialAccounting,9/e
97
36.
D
Easy
37.
D
Hard
CPA
adapted
38.
D
Easy
ManagerialAccounting,9/e
98
39.
C
Easy
Units
6,600
Percentage
complete
60%
40,100
37,100
9,600
80%
ManagerialAccounting,9/e
99
41.
B
Hard
Conversion Costs
Percentage Completed
60%
20%
Materials
Conversion Costs
P 25,000
P 54,000
P115,000
P315,000
ManagerialAccounting,9/e
100
43.
D
Medium
44.
A
Medium
CPA
adapted
45.
B
Easy
P6,800
P8,800
P3,400
P4,400
ManagerialAccounting,9/e
101
46.
B
Hard
47.
A
Easy
Units
4,800
Percentage
complete
60%
78,000
80,900
1,900
40%
The Molding Department's production report indicates that the cost per
equivalent unit for conversion cost for January was P5.37.
How much conversion cost was assigned to the ending work in process
inventory in the Molding Department for January?
a. P4,081.20
b. P10,203.00
c. P10,310.40
d. P6,121.80
48.
D
Medium
(Appendix) Ebis Company uses the FIFO method in its process costing
system. The first processing department, the Welding Department,
started the month with 13,000 units in its beginning work in process
inventory that were 10% complete with respect to conversion costs. The
conversion cost in this beginning work in process inventory was
P12,610. An additional 89,000 units were started into production
during the month. There were 22,000 units in the ending work in
process inventory of the Welding Department that were 30% complete
with respect to conversion costs. A total of P806,085 in conversion
costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for
the month on the department's production report? (Round off to three
decimal places.)
a. P8.026
b. P9.700
c. P9.057
d. P9.450
49.
C
Medium
(Appendix) Marten Company uses the FIFO method in its process costing
system. Operating data for the Casting Department for the month of
September appear below:
ManagerialAccounting,9/e
Units
19,000
Percentage
complete
80%
74,000
102
17,000
90%
ManagerialAccounting,9/e
103
50.
C
Hard
(Appendix) Herston Company uses the FIFO method in its process costing
system. The beginning work in process inventory in a particular
department consisted of 6,000 units, two-thirds complete with respect
to conversion costs. During the month, 42,000 units were started and
40,000 units were completed and transferred out of the department. The
company had 40,000 equivalent units of production for conversion
costs. The ending work in process inventory in the department
consisted of:
a. 8,000 units, 25% complete with respect to conversion costs.
b. 0 units.
c. 8,000 units, 50% complete with respect to conversion costs.
d. 4,000 units, 100% complete with respect to conversion costs.
51.
B
Medium
(Appendix) Carson Company uses the FIFO method in its process costing
system. The Assembly Department started the month with 6,000 units in
its beginning work in process inventory that were 20% complete with
respect to conversion costs. An additional 74,000 units were
transferred in from the prior department during the month to begin
processing in the Assembly Department. There were 8,000 units in the
ending work in process inventory of the Assembly Department that were
60% complete with respect to conversion costs.
What were the equivalent units of production for conversion costs in
the Assembly Department for the month?
a. 72,000
b. 75,600
c. 76,000
d. 76,800
52.
A
Medium
(Appendix) Karmen Company uses the FIFO method in its process costing
system. Operating data for the Enameling Department for the month of
May appear below:
Units
2,400
87,000
8,600
Percentage
complete
40%
60%
ManagerialAccounting,9/e
104
53.
A
Medium
(Appendix) Creer Company uses the FIFO method in its process costing
system. Department A had 20,000 units in process at the beginning of
January, that were 40% complete with respect to conversion costs. All
materials are added at the beginning of the process in Department A.
The January 1 work in process inventory in Department A contained
P10,000 in materials cost and P11,600 in conversion cost. During
January, materials costs were P0.50 per equivalent unit and conversion
costs were P1.50 per equivalent unit. All of the units in the
beginning work in process inventory were completed and transferred out
during the month. What was the total cost attached to these units when
they were transferred to the next department?
a. P39,600.
b. P33,600.
c. P45,600.
d. P37,600.
54.
C
Medium
(Appendix) Mukluk Company uses the FIFO method in its process costing
system. The conversion cost for the month of April is P5.00 per
equivalent unit and the material cost is P2.90 per equivalent unit. At
the beginning of the month, 1,000 units were in process that were 100%
complete with respect to materials and 30% complete with respect to
conversion, with a total cost at that point of P2,400. If these units
are fully complete by the end of the month, their total cost will be:
a. P3,500.
b. P3,900.
c. P5,900.
d. P8,000.
55.
A
Medium
(Appendix) Index Company uses the FIFO method in its process costing
system. The first processing department, the Forming Department,
started the month with 17,000 units in its beginning work in process
inventory that were 10% complete with respect to conversion costs. The
conversion cost in this beginning work in process inventory was
P9,010. An additional 76,000 units were started into production during
the month and 83,000 units were completed and transferred to the next
processing department. There were 10,000 units in the ending work in
process inventory of the Forming Department that were 70% complete
with respect to conversion costs. A total of P445,915 in conversion
costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for
the month on the Forming Department's production report? (Round off
to three decimal places.)
a. P5.050
b. P5.300
c. P5.867
d. P5.150
ManagerialAccounting,9/e
105
56.
A
Medium
(Appendix) Qart Company uses the FIFO method in its process costing
system. Operating data for the Cutting Department for the month of
March appear below:
Units
4,500
Percentage
complete
20%
74,000
74,500
4,000
60%
(Appendix) Roger Company uses the FIFO method in its process costing
system. The following data are taken from the accounting records of a
particular department for June:
Beginning work in process inventory:
Cost ................................ P17,500
Units ............................... 20,000 units
Percentage completion:
Materials ........................
100%
Conversion .......................
60%
Units completed and transferred out ....
Cost per equivalent unit:
Material ............................
Conversion ..........................
75,000 units
P1.75
P0.50
The cost of the 75,000 units transferred out of the department during
June is:
a. P151,250.
b. P145,250.
c. P131,500.
d. P168,750.
ManagerialAccounting,9/e
106
58.
A
Medium
(Appendix) Winkle Company uses the FIFO method in its process costing
system. At the beginning of March, the work in process inventory in
the Blending Processing Center consisted of 5,000 units, 90% complete
with respect to conversion costs. At the end of the month, the work in
process inventory consisted of 2,000 units that were 60% complete with
respect to conversion costs. If 10,000 units were transferred to the
next processing center during the month, the equivalent units of
production for conversion costs were:
a. 6,700 units.
b. 11,700 units.
c. 10,300 units.
d. 13,000 units.
59.
B
Easy
CPA
adapted
(Appendix) Winder Company uses the FIFO method in its process costing
system. Department One is the first stage of the company's production
process. The following information pertains to conversion costs for
April for Department One:
Units
Work in process, beginning (40% complete) ............. 40,000
Started in April ...................................... 320,000
Completed in April and transferred to Department Two .. 340,000
Work in process, ending (60% complete) ................ 20,000
The equivalent units of production for conversion costs are:
a. 320,000.
b. 336,000.
c. 352,000.
d. 360,000.
60.
D
Medium
(Appendix) Garson Company uses the FIFO method in its process costing
system. The Grinding Department started the month with 18,000 units in
its beginning work in process inventory that were 10% complete with
respect to conversion costs. An additional 98,000 units were
transferred in from the prior department during the month to begin
processing in the Grinding Department. During the month 115,000 units
were completed in the Grinding Department and transferred to the next
processing department. There were 1,000 units in the ending work in
process inventory of the Grinding Department that were 20% complete
with respect to conversion costs.
What were the equivalent units of production for conversion costs in
the Grinding Department for the month?
a. 81,000
b. 115,200
c. 115,000
d. 113,400
ManagerialAccounting,9/e
107
61.
D
Medium
(Appendix) Oxyrom Company uses the FIFO method in its process costing
system. Operating data for the Brazing Department for the month of
November appear below:
Units
3,800
Percentage
complete
20%
46,700
43,200
7,300
80%
(Appendix) Tarten Company uses the FIFO method in its process costing
system. Operating data for the Curing Department for the month of
March appear below:
Units
9,000
Percentage
complete
10%
57,000
65,000
1,000
70%
ManagerialAccounting,9/e
108
Reference: 4-1
A sporting goods manufacturer buys wood as a direct material for baseball bats. The
Forming Department processes the baseball bats, and the bats are then transferred to
the Finishing Department where a sealant is applied. There was no beginning work in
process inventory in the Forming Department in May. The Forming Department began
manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming
Department for the month of May were as follows:
Direct materials ........
Conversion costs ........
P33,000
P17,000
A total of 8,000 bats were completed and transferred to the Finishing Department
during May. The ending work in process inventory was 100% complete with respect to
direct materials and 25% complete with respect to conversion costs. The company uses
the weighted-average method of process costing.
63.
D
Medium
CMA
adapted
Refer To:
4-1
64.
A
Medium
CMA
adapted
Refer To:
4-1
Reference: 4-2
Adam Company uses the weighted-average method in its process costing system. The
following information for the Assembly Department was obtained from the accounting
records for September (all materials are added at the beginning of the process):
Number
of Units
60,000
105,000
40,000
Transferred
In
Beginning work in
process inventory ............
Cost added during the month .....
P 60,000
P115,500
Materials
Labor &
Overhead
P30,000
P63,000
P 16,000
P320,000
65.
A
Medium
Refer To:
4-2
66.
D
Medium
Refer To:
4-2
The equivalent units of production for material for the month is:
a. 105,000.
b. 145,000.
c. 122,000.
d. 165,000.
ManagerialAccounting,9/e
109
Reference: 4-3
Madsen Company uses the weighted-average method in its process costing system. During
October, the Mixing Department transferred out 40,000 units. The October 31 work in
process inventory in the Mixing Department consisted of 4,000 equivalent units of
material and 5,000 equivalent units of labor and overhead. The cost per equivalent
unit was P2.50 for materials and P6.25 for labor and overhead.
67.
A
Medium
Refer To:
4-3
68.
B
Medium
Refer To:
4-3
The "Total cost to account for" section of the production report for
October will show an amount equal to:
a. P110,000.
b. P391,250.
c. P350,000.
d. P428,750.
Reference: 4-4
(Appendix) The activity in Nolan Company's Blending Department for the month of April
is given below:
Number
of Units
Work in process
inventory, April 1 .......
Started into process
during the month .........
Work in process
inventory, April 30 ......
8,000
50,000
10,000
70%
All materials are added at the beginning of processing in the Blending Department.
69.
A
Medium
Refer To:
4-4
70.
B
Medium
Refer To:
4-4
71.
C
Medium
Refer To:
4-4
The equivalent units of production for material for the month, using
the weighted-average method, are:
a. 48,000 units.
b. 50,000 units.
c. 58,000 units.
d. 52,000 units.
72.
D
Medium
Refer To:
The equivalent units of production for labor and overhead for the
month, using the weighted-average method, are:
a. 50,000 units.
b. 51,000 units.
ManagerialAccounting,9/e
110
4-4
c. 47,000 units.
d. 55,000 units.
Reference: 4-5
Activities in the Challenger Companys Assembly Department for the month of
follow:
Number
Percent Complete
Units
Materials Conversion
Work in process inventory, March 1
5,000
65%
30%
Started into production during March
65,000
Work in process inventory, March 3
3,000
35%
25%
March
73.
C
Medium
Refer to:
4-5
The equivalent units of production for materials for March, using the
weighted-average method, would be:
a. 65,000.
b. 67,000.
c. 68,050.
d. 70,000.
74.
A
Hard
Refer to:
4-5
ManagerialAccounting,9/e
111
Reference: 4-6
The following data relate to the Blending Department of Tru-Color Paint Company for a
recent month:
Number
of Units
9,000
45,000
46,000
8,000
Percent Complete
Conversion Costs
60%
25%
All materials are added prior to the beginning of work in the Blending Department.
75.
B
Hard
Refer to:
4-6
(Appendix) Assuming that Tru-Color Paint Company uses the FIFO method,
the equivalent units of production for materials would be:
a. 42,600.
b. 45,000.
c. 53,000.
d. 46,000.
76.
A
Hard
Refer to:
4-6
(Appendix) Assuming Tru-Color Paint Company uses the FIFO method, the
equivalent units of production for conversion costs would be:
a. 42,600.
b. 44,400.
c. 46,000.
d. 54,000.
77.
C
Medium
Refer to:
4-6
78.
D
Medium
Refer to:
4-6
ManagerialAccounting,9/e
112
Reference: 4-7
The information below was obtained from the records of the first processing
department of Christine Corporation for the month of July. The company uses the
weighted-average method in its process costing system.
Units
20,000
70,000
80,000
?
The equivalent units of production for material for the month is:
a. 70,000.
b. 90,000.
c. 80,000.
d. 82,500.
80.
D
Medium
Refer To:
4-7
The equivalent units of production for labor and overhead for the
month is:
a. 70,000.
b. 90,000.
c. 80,000.
d. 82,500.
Reference: 4-8
The information below was obtained from the records of the first processing
department of Moore Company for the month of May. The company uses the weightedaverage method in its process costing system.
Units
10,000
64,000
60,000
14,000
The equivalent units of production for materials for the month of May
were:
a. 60,000 units.
b. 74,000 units.
c. 64,000 units.
d. 69,800 units.
82.
B
Medium
Refer To:
4-8
The equivalent units of production for labor and overhead for the
month of May were:
a. 60,000 units.
b. 69,800 units.
c. 65,800 units.
d. 73,800 units.
Reference: 4-9
Information about units processed and processing costs incurred during a recent month
in the Refining Department of a manufacturing company follow:
Number of
Units
ManagerialAccounting,9/e
Percent Completion
Conversion Costs
113
35%
30%
The beginning work in process inventory included P11,000 of conversion cost. During
the month, the Department incurred an additional P290,000 in conversion costs.
83.
A
Medium
Refer to:
4-9
Assuming that the company uses the weighted-average cost method, what
are the equivalent units of production for conversion costs for the
Blending Department for the month?
a. 119,100
b. 120,000
c. 114,000
d. 131,000
84.
B
Medium
Refer to:
4-9
Assuming that the company uses the weighted-average cost method, what
is the cost per equivalent unit for conversion costs for the month in
the Blending Department to the nearest cent?
a. P2.55
b. P2.53
c. P2.50
d. P2.44
85.
C
Medium
Refer to:
4-9
(Appendix) Assuming that the company uses the FIFO method, what are
the equivalent units of production for conversion costs for the
Blending Department for the month?
a. 119,100
b. 111,950
c. 115,250
d. 114,000
ManagerialAccounting,9/e
114
86.
A
Hard
Refer to:
4-9
(Appendix) Assuming that the company uses the FIFO method, what is the
cost per equivalent unit for conversion costs for the month in the
Blending Department to the nearest cent?
a. P2.52
b. P2.54
c. P2.44
d. P2.59
Reference: 4-10
(Appendix) Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device
for the mining industry. The company uses a process costing system and has only a
single processing department. The following information pertains to operations for
the month of May:
Units
Beginning work in process inventory ..... 16,000
Started into production during May ...... 100,000
Completed during May .................... 92,000
Ending work in process inventory ........ 24,000
The beginning work in process inventory was 60% complete with respect to materials
and 20% complete with respect to conversion costs. The ending work in process
inventory was 90% complete with respect to materials and 40% complete with respect to
conversion costs. The costs were as follows:
Beginning work in process inventory ....
Costs incurred during May ..............
Materials
P54,560
P468,000
Conversion
P35,560
P574,040
87.
B
Medium
Type: CMA
adapted
Refer To:
4-10
88.
D
Medium
CMA
adapted
Refer To:
4-10
89.
B
Medium
CMA
adapted
Refer To:
4-10
(Appendix) Using the FIFO method, the cost per equivalent unit of
materials for May is closest to:
a. P4.12.
b. P4.50.
c. P4.60.
d. P4.80.
ManagerialAccounting,9/e
115
90.
B
Medium
CMA
adapted
Refer To:
4-10
(Appendix) Using the FIFO method, the cost per equivalent unit of
conversion cost for May is closest to:
a. P5.65.
b. P5.83.
c. P6.00.
d. P6.20.
91.
A
Medium
CMA
adapted
Refer To:
4-10
(Appendix) Using the FIFO method, the total cost of units in the
ending work in process inventory is closest to:
a. P153,200.
b. P154,800.
c. P155,300.
d. P157,000.
92.
C
Medium
CMA
adapted
Refer To:
4-10
93.
C
Medium
CMA
adapted
Refer To:
4-10
94.
A
Medium
CMA
adapted
Refer To:
4-10
Reference: 4-11
Reid Company uses a process costing system in which units go through several
departments. In the Cutting Department for June, units in the beginning work in
process inventory were 80% complete with respect to conversion costs. Units in the
ending work in process inventory were 25% complete with respect to conversion costs.
Other data for the department for June are as follows:
Units Conversion Cost
Work in process inventory on June 1 .......... 15,000
P 50,200
Units started into production ................ 145,000
Conversion costs incurred during June ........
P175,700
Units completed and transferred to the next
department during June .................. 130,000
ManagerialAccounting,9/e
116
95.
B
Hard
Refer to:
4-11
(Appendix) Assuming that the company uses the FIFO cost method, what
is the cost per equivalent unit for conversion costs for June to the
nearest whole cent?
a. P1.80
b. P1.40
c. P1.64
d. P1.35
96.
A
Hard
Refer to:
4-11
Reference: 4-12
Cherrington Company uses a process costing system. For May, the month just completed,
the beginning work in process inventory consisted of 50,000 units which were 60%
complete with respect to conversion costs. The ending inventory for the month was 20%
complete with respect to conversion costs. A summary of cost data for the month
follows:
Units
Work in process inventory, May 1 ......... 50,000
Units started into production ............ 180,000
Conversion costs incurred during May .....
Units completed and transferred out
during the month ...................... 190,000
Conversion Costs
P 30,000
P 690,000
97.
C
Hard
Refer to:
4-12
98.
D
Hard
Refer to:
4-12
ManagerialAccounting,9/e
117
Reference: 4-13
Nando Company uses the weighted-average method in its process costing system.
Department J is the second of three sequential processes at the company. During
October, Department J collected the following data:
Units
8,000
25,000
20,000
13,000
Labor and
Overhead
P 31,200
P194,800
The total cost assigned to units transferred out during October was:
a. P264,600.
b. P316,000.
c. P342,000.
d. P358,400.
100.
B
Medium
Refer To:
4-13
Reference: 4-14
(Appendix) The following information was obtained from the records of the first
processing department of Keith Manufacturing Company for the month of February. The
company uses the FIFO method in its process costing system.
Units
Work in process inventory, Feb. 1 ....... 15,000
Started in assembly during the month .... 60,000
Work in process inventory, Feb. 28 ...... 20,000
ManagerialAccounting,9/e
118
101.
B
Medium
Refer To:
4-14
The equivalent units of production for material for the month is:
a. 50,000.
b. 60,000.
c. 54,500.
d. 75,000.
102.
A
Medium
Refer To:
4-14
The equivalent units of production for labor and overhead for the
month is:
a. 54,500.
b. 59,000.
c. 95,000.
d. 60,000.
Essay
103.
Hard
P342
P2,394
21,000
20,700
P44,136
P546,750
Work in
Units
Stage
Stage
process, ending:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
300
60%
30%
600
80%
30%
Required:
Prepare a production report for the department using the weightedaverage method.
ManagerialAccounting,9/e
119
Answer:
Weighted Average method:
Quantity schedule and equivalent units
Quantity
Schedule
Units to be accounted for:
Work in process, beginning .....
Started into production ........
Total units ..................
300
21,000
21,300
Equivalent units
Materials Conversion
20,700
600
21,300
20,700
480
21,180
20,700
180
20,880
Materials
Conversion
P342
P44,136
P44,478
P2,394
P546,750
P549,144
21,180
P2.100
20,880
P26.300
Cost reconciliation
Total
Cost
Cost accounted for as follows:
Transferred out ........
P587,880
Work in process, ending:
Materials ............
P1,008
Conversion ...........
P4,734
Total work in process,
ending .................
P5,742
Total cost ...............
P593,622
ManagerialAccounting,9/e
20,700
480
180
120
104.
Hard
P2,440
P4,928
15,000
15,600
P96,470
476,362
Work in
Units
Stage
Stage
process, ending:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
800
50%
20%
200
50%
90%
Required:
Using the weighted-average method:
a. Determine the equivalent units of production for materials
and
conversion costs.
b. Determine the cost per equivalent unit for materials and
conversion costs.
c. Determine the cost of units transferred out of the
department
during the month.
d. Determine the cost of ending work in process inventory in
the
department.
ManagerialAccounting,9/e
121
Answer:
a. through d. The answers to all of the questions can be found
filling out a production report as follows.
by
15,600
200
15,800
15,600
100
15,700
15,600
180
15,780
Materials
Conversion
P2,440
P96,470
P98,910
P4,928
P476,362
P481,290
15,700
P6.300
15,780
P30.500
P36.800
Cost reconciliation
Total
Cost
Cost accounted for as follows:
Transferred out ............. P574,080
Work in process, ending:
Materials .................
P630
Conversion ................
P5,490
Total work in process, ending .
P6,120
Total cost .................... P580,200
ManagerialAccounting,9/e
15,600
100
180
122
105.
Medium
Conversion
Percentage
Complete
80%
Units
10,000
28,000
30,000
8,000
30%
Conversion
P 48,600
P194,400
30,000
8,000
38,000
30,000
2,400
32,400
ManagerialAccounting,9/e
123
106.
Medium
process, beginning:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
process, ending:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
700
50%
40%
3,000
200
80%
40%
Required:
Using the weighted-average method, determine the equivalent units of
production for materials and conversion costs by compiling the
"Quantity Schedule and Equivalent Units" portion of the production
report.
Answer:
Quantity schedule and equivalent units
Quantity
Schedule
Units to be accounted for:
Work in process, beginning .....
700
Started into production ........ 23,000
Total units .................. 23,700
Equivalent units
Materials
Conversion
d.
Units accounted for as follows:
Transferred to next department .
Work in process, ending ........
Total units ..................
ManagerialAccounting,9/e
23,500
200
23,700
23,500
160
23,660
23,500
80
23,580
124
107.
Hard
Percentage Completed
Units Materials Conversion
70,000
5/7
3/7
460,000
450,000
80,000
7/8
5/8
Cost in the beginning work in process inventory and cost added during
the month were as follows:
Work in process, March 1 .........
Cost added during March ..........
Materials
P 42,190
P440,810
Conversion
P 38,000
P 394,000
Materials
450,000
Conversion
450,000
70,000
520,000
50,000
500,000
Unit costs:
Materials: (P42,190 + P440,810)/520,000 = P0.929
Conversion: (P38,000 + P394,000)/500,000 = P0.864
ManagerialAccounting,9/e
125
Equivalent units:
FIFO:
Materials
Work in process, March 1:
Materials: 70,000 x 2/7 = .............. 20,000
Conversion:70,000 x 4/7 = ...............
Started and completed during March ...... 380,000
Work in process, March 31:
Materials: 80,000 x 7/8 = .............. 70,000
Conversion: 80,000 x 5/8 = .............
Equivalent units ........................ 470,000
Conversion
40,000
380,000
50,000
470,000
Unit costs:
Materials: P440,810/470,000 = P0.938
Conversion: P394,000/470,000 = P0.838
108.
Medium
ManagerialAccounting,9/e
126
Answer:
a.
1. Units transferred out ..............
Deduct: equivalent units in
the beginning inventory ........
Add: equivalent units in
the ending inventory ...........
Equivalent units ..................
26,000
2,000
24,000
4,000
28,000
26,000
4,000
30,000
ManagerialAccounting,9/e
127
109.
Hard
Production and cost data for the month of February for Process A of
the Packer manufacturing Company follow:
Production record:
Units in process, February 1
(100% complete with respect to materials;
25% complete with respect to conversion cost) ........
New units started in process ............................
Units completed .........................................
Units in process, February 28
(100% complete with respect to materials;
1/3 complete with respect to conversion cost) ........
Cost record:
Work in process inventory, February 1:
Materials ...............................
Conversion ...............................
Costs for February:
Materials issued .........................
Conversion ...............................
Total cost to be accounted for .............
P600
100
2,000
8,000
7,000
3,000
700
2,560
1,500
P4,760
for
ManagerialAccounting,9/e
600
2,560
P 3,160
10,000
P 0.316
Conversion
P
100
1,500
P1,600
8,000
P 0.20
128
2. and 3.
Units completed and transferred7,000 x P.516 ........ P3,612
Work in process inventory, February 28:
Material cost: 3,000 units x 100% x P0.316 = ..........
948
Conversion cost: 3,000 units x 1/3 x P0.20 = ..........
200
Total cost accounted for .............................. P4,760
110.
Hard
Costs
_
Materials Conversion
100,000 P100,000
500,000
P157,500
P650,000
P997,500
450,000
The company uses the weighted-average cost method in its process costing
system. The ending inventory is 50% complete with respect to conversion
costs.
Required:
1. Compute the equivalent units of production and the cost per
equivalent units for materials and for conversion costs.
2. Determine the cost transferred to finished goods.
3. Determine the amount of cost that should be assigned to the
ending work in process inventory.
ManagerialAccounting,9/e
129
Answer:
Equivalent units:
Units completed and transferred out ...
Work in process, December 31:
Materials: 150,000 x 1.00 = ..........
Conversion: 150,000 x 0.50 = .........
Equivalent units ......................
Materials
450,000
Conversion
450,000
150,000
_______
600,000
75,000
525,000
Unit costs:
Materials
Costs in beginning work in process .... P100,000
Costs added during the year ........... 650,000
Total ................................. P750,000
Equivalent units ...................... 600,000
Unit cost ............................. P
1.25
Costs to be accounted for:
Work in process, beginning ............
Cost added by department ..............
Total cost to be accounted for ........
Conversion
P 157,500
997,500
P1,155,000
525,000
P
2.20
P
257,500
1,697,500
P1,905,000
P1,552,500
187,500
165,000
P1,905,000
ManagerialAccounting,9/e
P187,500
165,000
P352,500
130
111.
Medium
Percentage Completed
Materials Conversion
3/5
2/5
Units
50,000
440,000
430,000
60,000
5/6
2/3
ManagerialAccounting,9/e
Materials
430,000
Conversion
430,000
50,000
480,000
40,000
470,000
131
112.
Medium
Sharp Company has a process costing system. The following data relate
to the company's Mixing Department for a recent month:
Conversion
Percentage
of Completion
60%
Units
5,000
40,000
37,000
8,000
25%
production for
production for
for materials
for conversion
Answer:
a. & b.
Materials
Units transferred out ..................
37,000
Deduct: equivalent units in beginning
inventory ...........................
5,000
32,000
Add: equivalent units in ending
inventory ...........................
8,000
Equivalent units of production .........
40,000
c. & d.
Units transferred out ..................
Add: equivalent units in the ending
inventory ...........................
Equivalent units of production .........
ManagerialAccounting,9/e
Conversion
37,000
3,000
34,000
2,000
36,000
37,000
37,000
8,000
45,000
2,000
39,000
132
113.
Hard
(Appendix) Darver Inc. uses the FIFO method in its process costing
system. The following data concern the operations of the company's
first processing department for a recent month.
Work in process, beginning:
Units in process ..................................
Stage of completion with respect to materials .....
Stage of completion with respect to conversion ....
Costs in the beginning inventory:
Material cost ...................................
Conversion cost..................................
P376
P2,376
21,000
20,400
100
80%
60%
process, ending:
in process ..................................
of completion with respect to materials .....
of completion with respect to conversion ....
700
70%
50%
Required:
Prepare a production report for the department using the FIFO method.
Answer:
Quantity Schedule and Equivalent Units
Quantity
Schedule
Units to be accounted for:
Work in process, beginning .....
Started into production ........
Total units ..................
100
21,000
21,100
Equivalent units
Materials Conversion
d.
Units accounted for as follows:
Transferred out:
From the beginning inventory...
100
Started and completed ......... 20,300
Work in process, ending ........
700
Total units ................. 21,100
ManagerialAccounting,9/e
20
20,300
490
20,810
40
20,300
350
20,690
133
Materials
Conversion
P93,645
P825,531
20,810
P4.500
20,690
P39.900
ManagerialAccounting,9/e
20
40
20,300
20,300
490
350
134
114.
Hard
(Appendix) Easy Inc. uses the FIFO method in its process costing
system. The following data concern the operations of the company's
first processing department for a recent month.
Work in process, beginning:
Units in process ................................
Stage of completion with respect to materials ...
Stage of completion with respect to conversion ..
Costs in the beginning inventory:
Materials cost ................................
Conversion cost ...............................
P594
P8,256
26,000
25,500
P79,732
P887,626
Work in
Units
Stage
Stage
process, ending:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
300
60%
80%
800
50%
40%
Required:
Using the FIFO method:
a. Determine the equivalent units of production for materials
and
conversion costs.
b. Determine the cost per equivalent unit for materials and
conversion costs.
c. Determine the cost of units transferred out of the
department
during the month.
d. Determine the cost of ending work in process inventory in
the
department.
Answer:
a. through d. can be answered by completing a production report
follows:
as
ManagerialAccounting,9/e
135
Equivalent units
Materials Conversion
d.
Units accounted for as follows:
Transferred out:
From the beginning inventory
Started and completed ......
Work in process, ending ......
Total units ...............
300
25,200
800
26,300
120
25,200
400
25,720
60
25,200
320
25,580
Materials Conversion
P79,732
P887,626
25,720
P3.100
25,580
P34.700
P37.800
Cost Reconciliation
Total
Cost
Cost accounted for as follows:
Transferred out:
From the beginning inventory:
Cost in the beginning inventory
Cost to complete these units:
Materials ...................
P8,850
P372
Conversion ..................
P2,082
Total cost ................ P11,304
Units started and completed .... P952,560
Total cost transferred ......... P963,864
Work in process, ending:
Materials .....................
P1,240
Conversion .................... P11,104
Total work in process, ending. P12,344
Total cost ..................... P976,208
ManagerialAccounting,9/e
120
60
25,200
25,200
400
320
136
115.
Medium
(Appendix) Farwest Inc. uses the FIFO method in its process costing
system. The following data concern the operations of the company's
first processing department for a recent month.
Work in
Units
Stage
Stage
process, beginning:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
process, ending:
in process ................................
of completion with respect to materials ...
of completion with respect to conversion ..
800
70%
50%
22,000
300
80%
70%
Required:
Using the FIFO method, determine the equivalent units of production
for materials and conversion costs by compiling the "Quantity Schedule
and Equivalent Units" portion of the production report.
Answer:
Quantity Schedule and Equivalent Units
Quantity
Schedule
Units to be accounted for:
Work in process, beginning .....
800
Started into production ........
22,000
Total units ..................
22,800
Equivalent units
Materials Conversion
d.
Units accounted for as follows:
Transferred out:
From the beginning inventory .
Started and completed ........
Work in process, ending ........
Total units .................
ManagerialAccounting,9/e
800
21,700
300
22,800
240
21,700
240
22,180
400
21,700
210
22,310
137
116.
Hard
(Appendix) Production and cost data for the month of February for
Process A of the Packer Manufacturing Company were as follows:
Production record:
Units in process, February 1
(100% complete with respect to materials;
25% complete with respect to conversion cost) ........
New units started in process ............................
Units completed .........................................
Units in process, February 28
(100% complete with respect to materials;
1/3 complete with respect to conversion cost) ........
Cost record:
Work in process inventory, February 1:
Materials ............................
Conversion ............................
Costs for February:
Materials issued ......................
Conversion ............................
Total cost to be accounted for ..........
P600
100
2,000
8,000
7,000
3,000
700
2,560
1,500
P4,760
The company uses the FIFO cost method in its process costing system.
Required:
1. Calculate the equivalent units and unit costs for February
materials and conversion costs.
for
ManagerialAccounting,9/e
138
Answer:
1. Equivalent units:
Materials:
Completion of work in process at February 1 ............
Units started and completed during the period ..........
Units in process at February 28 ........................
Equivalent units .......................................
5,000
3,000
8,000
Conversion:
Completion of work in process at February 1
(2,000 x 0.75) .......................................
Units started and completed during the period ..........
Units in process at February 28 (3,000 x 1/3) ..........
Equivalent units .......................................
1,500
5,000
1,000
7,500
Unit costs:
Materials: P2,560/8,000 = ..............................
Conversion: P1,500/7,500 = .............................
Total unit cost ........................................
P0.32
0.20
P0.52
2. and 3.
From beginning work in process inventory (2,000 units):
Cost from preceding period ............................. P 700
Materials added ........................................
-0Conversion: 2,000 units x 0.75 x P0.20 .................
300
Completed cost of opening inventory .................... P1,000
From new production started in current month
(5,000 units): 5,000 units x P0.52 .................. 2,600
Total cost of completed production ..................... P3,600
Work in process inventory, February 28:
Material cost: 3,000 units x 100% x P0.32 ....... 960
Conversion cost: 3,000 units x 1/3 x P0.20 ...... 200
1,160
Total cost accounted for ............................... P4,760
ManagerialAccounting,9/e
139