Excel Professional Services

Process Cost
DE LEON/ DE LEON/ DE LEON
 Problem 1
(a) I.P., beg. 6,000
Received 44,000
TOTAL 50,000

MATERIALS CONVERSION
AVERAGE:
WD EUP WD EUP
C&T 40,000 100% 40,000 100% 40,000
I.P.,end 5,000 30% 1,500
Lost unit 5,000 100% 5,000
TOTAL 50,000 40,000 46,500
 Problem 1
I.P., beg. 6,000
Received 44,000
TOTAL 50,000

FIFO: MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 6,000 100% 6,000 60% 3,600
Received 34,000 100% 34,000 100% 34,000
I.P., end 5,000 30% 1,500
Lost units 5,000 100% 5,000
TOTAL 50,000 40,000 44,100
 Problem 1(B)
I.P., beg. 10,000
Received 30,000
TOTAL 40,000

AVERAGE: MATERIALS CONVERSION

WD EUP WD EUP
C&T 32,000 100% 32,000 100% 32,000
I.P.,end 6,000 100% 6,000 40% 2,400
Lost Unit (normal) 2,000
TOTAL 40,000 38,000 34,400
 Problem 1(B)
I.P., beg. 10,000
Received 30,000
TOTAL 40,000
FIFO: MATERIALS CONVERSION
WD EUP WD EUP
C&T: I.P., beg. 10,000 70% 7,000
Received 22,000 100% 22,000 100% 22,000
I.P., end 6,000 100% 6,000 40% 2,400
Lost Unit (normal) 2,000
TOTAL 40,000 28,000 31,400
 Problem 1-C
(c ) I.P., beg. 5,000
Received 25,000
TOTAL 30,000

AVERAGE: MATERIALS CONVERSION

WD EUP WD EUP
C&T 22,000 100% 22,000 100% 22,000
I.P., end 5,000 100% 5,000 80% 4,000
Lost Unit
(abnormal) 3,000 100% 3,000 60% 1,800
TOTAL 30,000 30,000 27,800
 Problem 1-C
I.P., beg. 5,000
Received 25,000
TOTAL 30,000

FIFO: MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 5,000 50% 2,500
Received 17,000 100% 17,000 100% 17,000
I.P., end 5,000 100% 5,000 80% 4,000
Lost Unit (abnormal) 3,000 100% 3,000 60% 1,800
TOTAL 30,000 25,000 25,300
 Problem 2
FIFO(DEPT. 1)
Q.S.: I.P.,beg. 6,000
S.I.P. 44,000
TOTAL 50,000

(1)EUP: MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 6,000 1/3 2,000
Started in Process 34,000 100% 34,000 100% 34,000
I.P.,end 10,000 100% 10,000 3/5 6,000
TOTAL 50,000 44,000 42,000
 Problem 2
(2)UNIT COST:
M: 19,800/44,000 = P0.45
CC:16,800/42,000 = P0.40
36,600 P0.85

(3)Cost to be accounted for:

Cost of I.P., beg. P 5,200
Cost added 36,600
TOTAL P 41,800
 Problem 2
(4)Cost accounted for as follows:
C&T: from I.P., beg.
CLM P 5,200
Cost added:
CC (2,000 * 0.40) 800 6,000
from S.I.P. (34,000 * 0.85) 28,900
Total Cost of Completed Units P 34,900

I.P.,end: M (10,000 * 0.45) P 4,500

CC (6,000 * 0.40) 2,400 6,900
Total Accounted for P 41,800
 Problem 2
DEPT. 2
I.P.,beg. 5,000
Received 40,000
TOTAL 45,000

(1) EUP MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 5,000 30% 1,500 2/5 2,000
Received 32,000 100% 32,000 100% 32,000
I.P.,end 8,000 70% 5,600 7/8 7,000
TOTAL 45,000 39,100 41,000
 Problem 2
(2)Unit Cost:
PD: 34,900/40,000 = P 0.8725
M: 34,799/39,100 = 0.89
CC:45,920/41,000 = 1.12
P 2.8825

(3)Total Cost to be
Accounted for:
Cost of I.P.,beg. P 10,000
Cost transferred in 34,900
Cost added 80,719
TOTAL P 125,619
 Problem 2
(4)Total Cost Accounted for as
follows:
C&T: from I.P.,beg.
Cost LM P 10,000
Cost added:
M(1,500 * .89) 1,335
CC(2,000 * 1.12) 2,240 P 13,575
from Received (32,000 * 2.8825) 92,240
TOTAL COST of COMPLETED UNITS P 105,815

I.P.,end
CFPD: 8,000 * .8725= P 6,980
M: 5,600 * .89= 4,984
CC: 7,000 * 1.12= 7,840 19,804
TOTAL COST ACCOUNTED for P 125,619
PROBLEM 3: AVERAGE COSTING
I.P.,beg. 15,000
Started in P 20,000
TOTAL 35,000

(1) EUP
MATERIALS CONVERSION
WD EUP WD EUP
C&T 30,000 100% 30,000 100% 30,000
I.P.,end 5,000 100% 5,000 2/5 2,000
TOTAL 35,000 35,000 32,000
 PROBLEM 3:
(2)Unit Cost:
M (8,145 + 10,860)/35,000= P 0.543
CC (4,365 + 9,843)/32,000= 0.444
12,510 20,703 P 0.987

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. P 12,510
Cost added 20,703
TOTAL P 33,213
 PROBLEM 3:

(4)Cost Accounted for as follows:

C&T: (30,000 * .987) P 29,610
I.P.,end: M: 5,000 * .543=2,715
CC: 2,000 * .444=888 3,603

TOTAL P 33,213
 PROBLEM 3:
DEPT. 2: AVERAGE
COSTING
Q.S.: I.P.,beg. 9,000
Received 30,000
TOTAL 39,000

EUP

MATERIALS CONVERSION
WD EUP WD EUP
C&T 31,000 100% 31,000 100% 31,000
I.P.,end 8,000 100% 8,000 7/8 7,000
TOTAL 39,000 39,000 38,000
 PROBLEM 3:
(2)Unit Cost:
PD:(29,610 + 9,000)/39,000= P0.99
M:(3,996 + 30 636)/39,000= 0.888
CC:(3,330 + 38,850)/38,000= 1.11
TOTAL: 7,326 69,486 P2.988
(3)Total Cost to be Accounted for:

Cost of I.P.,beg. (7,326 + 9,000) P 16,326

Cost transferred in 29,610
Cost added 69,486
TOTAL P 115,422
 PROBLEM 3:

(4) Total Cost Accounted for as follows:

C&T: 31,000 * 2,988 P 92,628
I.P.,end: CFPD: 8,000 * .99= 7,920
M: 8,000 * .888= 7,104
CC: 7,000 * 1.11= 7,770 22,794
TOTAL P 115,422
 PROBLEM 4
CPR - Dept 1
1. Q.S.
S.I.P 50,000
50,000 Materials Conversion
WD EUP WD EUP
C&T 40,000 100% 40,000 100% 40,000
IP end 10,000 100% 10,000 60% 6,000
50,000 50,000 46,000

2. U.C.
M (100,000 / 50,000) P 2.00
CC (248,400 / 46,000 5.40
Total 7.40
CPR – DEPT1
3. Total Cost to be accounted for
Cost added this month P 348,400

4. Total Cost accounted for as ff

C &T 40,000 x 7.40 P 296,000
IP,end M: (10,000 x 2.00) P 20,000
CC: ( 6,000 x 5.40) P 32,400
P 348,400
CPR – DEPT 2
1. Q.S.
Rec’d from Dept I 40,000 Materials Conversion
WD EUP WD EUP
C&T 35,000 100% 35,000 100% 35,000
IP end 5,000 100% 5,000 80% 4,000
40,000 40,000 39,000

2. U.C.
PD (296,000 / 40,000) P 7.40
M ( 60,000 / 40,000) 1.50
CC (175,500 / 39,000) P 4.50 P 13.40
CPR – DEPT 2
3. Total Cost to be accounted for
Cost transferred-in P 296,000
Cost added this mo. P 235,500
P 531,500
4. Total Cost accounted for as ff:
C& T (35,000 x 13.40) P 469,000
IP end:
CFPD (5,000 x 7.40) P 37,000
M (5,000 x 1.50) 7,500
CC (4,000 x 4.50) 18,000 P 62,500
P 531,500
Journal Entries
1. MI 180,000
AP 180,000
2. WIP – Dept 1 100,000
WIP- Dept 2 60,000
FO Control 10,000
Materials 170,000
Journal Entries
3. WIP - Dept 1 138,000
WIP - Dept 2 97,500
FO Control 14,500
Payroll 250,000
4. WIP - Dept 1 110,400
WIP - Dept 2 78,000
FO Applied 188,400

5. FO Control 167,500
Various Credits 167,500
6. WIP – Dept 2 296,000
WIP – Dept 1 296,000

7. FG 469,000
WIP- Dept 2 469,000

8. AR 1,000,000
Sales 1,000,000
8. COGS 333,000
FG 333,000
9. COGS 3,600
FO Applied 188,400
FO control 192,000
 STMNT of COGM & SOLD
D Mat. Used:
Mat. 1/1 20,000
Purchases 180,000
Total available for use 200,000
Less: Mat. 1/31 30,000
Ind. materials 10,000 40,000 160,000
DL 235,500
FO 188,400
TMC 583,900
 STMNT OF COGM & SOLD
TMC 583,900
Less: WP, 1/31 114,900
CoGM 469,000
FG, 1/1 65,000
TGAS 534,000
Less: FG 1/31 201,000
COGS - normal 333,000
Under applied FO 3,600
COGS - actual 336,600
 PROBLEM 5: FIFO
I.P.,beg. 10,000
Received 40,000
TOTAL 50,000

(1)EUP MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 10,000 1/4 2,500
Received 25,000 100% 25,000 100% 25,000
I.P.,end 10,000 100% 10,000 1/2 5,000
Lost Unit (N) 5,000 100% 5,000 100% 5,000
TOTAL 50,000 40,000 37,500
 PROBLEM 5:
(2)Unit Costs:
PD: 140,000/40,000 P 3.50
M: 70,000/40,000= 1.75
CC: 292,500/37,500= 7.8
TOTAL: 362,500 P 13.05

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. P 140,500
Cost transferred in 140,000
Cost added 362,500
TOTAL P 643,000
 PROBLEM 5
(4)Total Accounted for as
follows:

C&T: I.P.,beg. CLM 140,500

Cost added (2,500 * 7.80) 19,500 160,000
Received (25,000 * 13.05) 326,250
Subtotal P 486,250
CNLU (5,000 * 13.05) 65,250
TOTAL Cost of Completed Units P 551,500

I.P.,end: CFPD (10,000 *3.50)= P 35,000

M (10,000 * 1.75)= 17,500
CC (5,000 * 7.80)= 39,000 91,500
TOTAL COST ACCOUNTED for P 643,000
 PROBLEM 5
PROBLEM 5: AVERAGE METHOD
I.P.,beg. 10,000
Received 40,000
TOTAL 50,000
EUP MATERIALS CONVERSION
WD EUP WD EUP
C&T 35,000 100% 35,000 100% 35,000
I.P.,end 10,000 100% 10,000 1/2 5,000
Lost Unit (N) 5,000 100% 5,000 100% 5,000
TOTAL 50,000 50,000 45,000
 PROBLEM 5
(2)Unit Cost:
PD (140,000 + 38,000)/50,000= P 3.56
M (21,500 + 70,000)/50,000= 1.83
CC (81,000 + 292,500)/45,000= 8.3
102,500 362,500 P 13.69

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. (38,000 + 102,500) P 140,500
Cost transferred in 140,000
Cost added 362,500
TOTAL P 643,000
 PROBLEM 5
(4)Total Cost Accounted for as follows:
C&T: 35,000 * 13.69 P 479,150
CNLU(5,000 * 13.69) 68,452
TOTAL P 547,600
I.P.,end: CFPD: 10,000 * 3.56= 35,600
M: 10,000 * 1.83= 18,300
CC: 5,000 * 8.30= 41,500 95,400
TOTAL P 643,000
 Problem 6
Received from PD 12,000
(1) EUP
MATERIALS CONVERSION
WD EUP WD EUP
C&T 9,000 100% 9,000 100% 9,000
I.P.,end 2,000 70% 1,400
Lost Unit (N) 450 90% 405
Lost Unit (A) 550 90% 495
TOTAL 12,000 9,000 11,300
 Problem 6
(2)Unit Cost:
PD: 84,000/12,000= P 7.00
M: 18,000/9,000= 2.00
CC: 45,200/11,300= 4.00
TOTAL P 13.00

(3)Total Cost to be Accounted for:

Cost transferred in 84,000

Cost added 63,200
TOTAL P 147,200
 Problem 6
(4)Total Cost Accounted for as follows:
C&T: 9,000 * 13 P 117,000
CNLU: (450 * 7) + (405 * 4) 4,770
Total Cost of Completed Units P 121,770
FOC: (550 * 7) + (495 * 4) 5,830
I.P.,end:
CFPD: (2,000 * 7) 14,000
CC (1,400*4) 5,600 19,600
TOTAL P 147,200
 Multiple Choice
1. C
WD EUP WD EUP
C&T 4,800 100% 4,800 100% 4,800
I.P.,end 700 100% 700 60% 420
TOTAL 5,500 5,500 5,220

2. A

Material Unit Cost: (P2,400 + P25,100)/ 5,500 = P5

 Multiple Choice
3. C Conversion
WD EUP
C&T 6,800 100% 6,800
I.P.,end 400 50% 200
TOTAL 7,200 7,000
4. A

Conversion Unit Cost (P550 + P13,450) / 7,000 = P2.00

 Multiple Choice
Item 5 B

CATM ( Materials) 24,780- 630 24,150

Divide by 4,200 EUP
Unit Cost 5.75

CATM Conversion Cost) 2.25*4,500 10,125

Add WIP,beg 270
Total cost 10,395
 Multiple Choice
Item no. 6 A Item no. 7 C
(a) I.P., beg. 3,000
Started 8,000
TOTAL 11,000

CONVERSION
FIFO:
WD EUP
C&T, IP, beg 3,000 75% 2,250
IStarted 6,000 100% 6,000
IP, end 2,000 65% 1,300
TOTAL 11,000 9,550
 Multiple Choice
Item no. 8 D
MATERIALS CONVERSION

Abnormal WD EUP WD EUP

Lost Units 40 100% 40 40% 16

FOH- C
Materials 40 * P10 P 400
C0nversion Cost 16 * (15 + 9) 384
TOTAL 784
 Multiple Choice
I.P., beg. 4,000
Received 30,000
TOTAL 34,000

FIFO: MATERIALS CONVERSION

WD EUP WD EUP
C&T: I.P.,beg. 4,000 60% 2,400
Received 21,000 100% 21,000 100% 21,000
I.P., end 6,000 100% 6,000 60% 3,600
Lost units 3,000
TOTAL 34,000 27,000 27,000
Item no. 9 D
(2)Unit Cost:
PD 97,200/ 27,000 = P 3.60
M: 67,500/27,000 = 2.50
CC: 81,000/ 27,000 = 3.00
TOTAL: P 9.10

C&T: from I.P., beg.

CLM P 20,140
Cost added:
CC (2,400 * 3) 7,200 27,340
from R.I.P. (21,000 * 9.10) 191,100
Total Cost of Completed Units P218,440
 Multiple Choice

10. C Materials Conversion

WD EUP WD EUP
C&T 12,000 100% 12,000 100% 12,000
I.P.,end 8,000 100% 8,000 75% 6,000
TOTAL 20,000 20,000 18,000
Unit Costs :
PD (P12,000 + P29,000) / 20,000 = P 2.05
M (P 2,500 + P 5,500 ) / 20,000 = 0.40
CC (P 1,000 + P 5,000 ) / 18,000 = 0.33
Cumulative Unit Cost P 2.78
 Multiple Choice

11. C Materials Conversion

WD EUP WD EUP
C&T 105,000 100% 105,000 100% 105,000
I.P.,end 20,000 80% 16,000
TOTAL 125,000 105,000 121,000
 Multiple Choice
12. B
Conversion
Work Done EUP
Compl/transferred 37,000 100% 37,000
IP, Ending 3,000 40% 1,200
Total 40,000 38,200
Conversion Unit Cost (P3,400 + P15,000) / 38,200 = P0.48

13. B

Preceding Dept Unit Cost (P2,900 + P17,500) / 40,000 = P0.51

Transferred-in cost of IP, end (3,000 EUP x P0.51) P1,530
 CLASSROOM DRILL

Item1 D
Materials
Work Done EUP
Compl/transferred 44,000 100% 44,000
IP, Ending 12,000 100% 12,000
Total 56,000 56,000

Material Unit Cost (P3,000 + P25,560) / 56,000 = P0.51 x 12,000 = P6,120

 CLASSROOM DRILL

Item 2 C
Materials Conversion
Work Done EUP Work Done EUP
Compl/transferred 15,000 100% 15,000 100% 15,000
IP, Ending 5,000 100% 5,000 65% 3,000
Total 20,000 20,000 18,000
 CLASSROOM DRILL

Item 3 D
Unit Conversion Cost: (P2,000 + P3,000) / 18,000
= P5,000/18,000
 CLASSROOM DRILL

Item 4 D
WIP, beg
+ Total Manufacturing Cost
– WIP, end
= Cost of Goods Mftd.

Therefore:
P8,000 + (P29,000 + P36,000) – P4,000 = P69,000
 CLASSROOM DRILL

Item 5 A
Materials & Conversion
Work Done EUP
Compl/transferred 800 100% 800
Lost units, Normal 100 - -
Lost units, Abnormal 100 100% 100
Total 1,000 900
Unit Cost (P5,000 + P3,000 – P180) / 900 EUPs = P8.80
Cost of goods manufactured = 800 units completed x P8.80 = P7,040
CLASSROOM DRILL

Item 6 A
 CLASSROOM DRILL

Item 7 C
Materials Conversion
Work Done EUP Work Done EUP
Compl/transferred 21,000 100% 21,000 100% 21,000
IP, Ending 3,000 100% 3,000 60% 1,800
Total 24,000 Average M 24,000 22,800
Less 4,000 2,000
FIFO M 20,000 20,800
 CLASSROOM DRILL
Item 8 B

Average Unit Costs: Materials (P1,992 + P12,000) / 24,000 = P0.583

Conversion (P1,920 + P19,968) / 22,800 = .960

Cost of IP, Ending : Materials (3,000 x P0.583) P1,749

Conversion (1,800 x P0.960) 1,728
Total Cost P3,477

FIFO Unit Costs : Materials (P12,000 / 20,000) P0.600

Conversion (P19,968 / 20,800) 0.960
Cost of IP, Ending Materials (3,000 x P0.60) P1,800
Conversion (1,800 x P0.96) 1,728
Total Cost P3,528
CLASSROOM DRILL

Item 9 B
 Item 10 B
Materials Conversion
Work Done EUP Work Done EUP
C&T: From IP, beg 6,000 - - 2/3 4,000
From SIP 10,000 100% 10,000 100% 10,000
IP, Ending 2,000 100% 2,000 ½ 1,000
Total 18,000 12,000 15,000

Unit Costs: Materials (P6,000 / 12,000) P0.50

Conversion (P9,000 / 15,000) 0.60
Total P1.10

C & T: from IP, beginning – Cost last month P 4,800

Cost added this month:
CC (4,000 x P0.60) 2,400 P 7,200
From Started in Process (10,000 x P1.10) 11,000
Total cost of completed units P18,200

IP, Ending Materials (2,000 x P0.50) P 1,000

Conversion (1,000 x P0.60) 600 P 1,600