1

CHAPTER 13
Answers to Multiple Choices Theoretical
1.
2.
3.
4.
5.

b
a
c
b
a

6.
7.
8.
9.
10.

b
d
b
a
c

Solutions to Multiple Choices Computational

1.

(d)
Transferred Out to next department (100%)
Normal lost units (100%)
Ending work in process (100%)
EUP Materials

2.

(a)
Transferred Out:
From BWIP: (30,000 x 40%)
From SIP: (55,000 30,000) 100%
Normal lost units (100%)
Ending work in process: (35,000 x 50%)
EUP Conversion cost

3.

37,000
15,000
17,500
69,500

2,000
7,000

9,000
1,500
2,400
12,900

(a)
Transferred Out
Normal lost units
Ending work in process
EUP Conversion costs

5.

12,000
25,000

(b)
Transferred Out:
From BWIP: (5,000 x 40%)
From TI: (12,000 5,000)
Normal lost units (2,000 x 75%)
Ending work in process: (6,000 x 40%)
EUP Conversion costs

4.

55,000
15,000
35,000
105,000

12,000
1,500
2,400
15,900

(c)
Transferred In cost: (620 x P12.50)
Cost added this department:
Materials: (620 x P8)
Conversion costs: (279 x P13.75)
Cost of lost units

P 4,960.00
3,836.25
7,750.00
P16,546.25

2
6.

7.

(c)
Cost of normal lost units: (P32,850 x 800/1,200)

P21,900

Allocated to Ending Work in Process: (P21,900 x 4,800/16,800)

P6,257.14

(c)
EUP
Transferred Out
Ending work in process
Normal spoiled units
EUP

8.

Actual Units
7,000
2,000
1,000

P3.00
5.00
P8.00

Cost of units transferred out: (7,000 x P8)

P56,000

(c)

33,000
9,000
2,000
44,000

(a)
Completed and transferred out
Ending work in process: (8,000 x 100%)
EUP Materials

11.

85,000
45,000
10,000
140,000

(b)
Transferred Out to finished goods (100%)
Ending work in process: (15,000 x 60%)
Abnormal lost units: (2,000 x 100%)
EUP Conversion costs

10.

Conversion
7,000
1,000
1,000
9,000

Unit costs:
Materials: (P30,000 / 10,000)
Conversion costs: (P45,000 / 9,000)
Total unit costs

Transferred Out to next department (100%)

Ending work in process (100%)
Normal lost units (10,000 x 100%)
EUP Materials
9.

Materials
7,000
2,000
1,000
10,000

72,000
8,000
80,000

(b)
Materials in BWIP
Materials added during month
Total
Divided by EUP
Unit material cost

P 68,000
100,000
P168,000
80,000
P 2.10

3
12.

(a)
Transferred Out to next department
Ending work in process (200 x 40%)
Lost units: (600 x 100%)
EUP Labor

13.

9,600
80
600
10,280

(a)
Labor cost in BWIP
Labor cost incurred during the month
Total labor costs
Divided by EUP
Unit labor cost

14.

(a)
Transferred Out to next department:
From BWIP: (400 x 50%)
From SIP: (9,600 400)
Ending work in process: (200 x 40%)
Lost units
EUP Labor

15.

3,000
15,000
18,000
(17,250)
( 450)
300

3,000
15,000
18,000

(a)
TI costs last month in BWIP
TI costs current month
Total
Divided by EUP
Unit TI costs

18.

9,400
80
600
10,080

(a)
Beginning WIP
Transferred In
EUP-TI costs

17.

200
9,200

(a)
Beginning WIP
Transferred In
Units to account for
Transferred Out
Ending WIP
Lost units

16.

P 15,000
365,360
P380,360
10,280
P
37

P 90,000
450,000
540,000
18,000
P
30

(a)
Beginning WIP
Transferred In this month
Lost units
EUP TI costs

100
4,800
( 95)
4,805

4
19.

(a)
TI costs last month in BWIP
TI costs- current month
Total
Divided by EUP
Unit transferred in costs

20.

P 19,350
124,800
P144,150
4,805
P
30

(a)
205 units x P30 = P6,150

21.

22.

(b)
Equivalent Units of Production Materials:
Completed and transferred out
Ending WIP (100%)
Abnormal lost units (100%)
EUP Materials

10,000
2,975
25
13,000

Unit material costs: (P60,000 + P304,000) 13,000

P 28

(a)
25 units x P28 = P700

23.

(a)
Beginning WIP
Transferred In
Units added
EUP

500
11,000
5,000
16,500

Or:
Transferred Out (100%)
Ending WIP (100%)
EUP TI costs
24.

(b)
Transferred In costs BWIP
Transferred In costs Current month
Total TI costs
Divided by EUP
Unit TI costs

25.

15,500
1,000
16,500

(c)
1,000 units x P12 =

P12,000

P 33,000
165,000
P198,000
16,500
P
12

5
26.

(c)
Transferred Out to next department:
From BWIP: (500 x 0%)
From TI: (2,200 500)
Ending WIP: (250 x 100%)
Normal lost units: (50 x 100%)
EUP Materials

27.

-01,700

(c)
Materials added during the month
Divided by EUP
Unit material cost

28.

1,700
250
50
2,000

P153,000
2,000
P 76.50

(a)
250 units x P76.50 = P19,125

29.

(a)
Equivalent Units of Production
Completed and transferred out
Ending WIP
Normal lost units
Abnormal lost units
EUP

Units
9,000
2,000
100
50

Unit Costs:
Materials: (P14,230 + P121,180) 11,150
Conversion costs: (P11,100 + P277,500) 9,750
Total unit cost
30.

Materials
9,000
2,000
100
50
11,150

Conversion
9,000
600
100
50
9,750
P12.1444
29.60
P41.7444

(d)
9,000 units x P41.7444 = P375,700

31.

(c)
Materials: (2,000 x P12.1444)
Conversion costs: (600 x P29.60)
Costs of EWIP

32.

(a)
50 units x P41.7444 = P2,087

P24,289
17,760
P42,049

6
33.

(a)
Equivalent Units of Production:
Materials:
Completed and transferred out:
From BWIP: (1,000 x 0%)
From SIP: (9,000 - 1,000)
Ending WIP: (2,000 x 100%)
Normal lost units: (100 x 100%)
Abnormal lost units: (50 x 100)
EUP
Conversion Costs:
Completed and transferred out:
From BWIP: (1,000 x 50%)
From SIP
Ending WIP: (2,000 x 30%)
Normal lost units
Abnormal lost units
EUP

34.

-08,000

500
8,000

P 14,230
15,000
29,230
3 35,520
4,194
P368,944

(a)
Materials: (2,000 x P11.94)
Conversion costs: (600 x P30)
Costs of EWIP

37.

P11.94
30.00
P41.94

(b)
Completed BWIP:
Cost last month
Cost added this month: Conversion costs: (500 x P30)
Total costs of completed BWIP
Completed SIP: (8,000 x P41.94)
Cost of normal lost units: (100 x P41.94)
Total costs of units completed and transferred out

36.

8,500
600
100
50
9,250

(a)
Materials: (P121,180 / 10,150)
Conversion costs: (P277,500 / 9,250)
Total unit cost

35.

8,000
2,000
100
50
10,150

(a)
50 units x P41.94 =

P2,097

P23,880
18,000
P41,880

7
38.

(a)
Materials:
Transferred Out:
From BWIP: (7,500 x P0%)
From SIP: (72,500 7,500) 100%
Ending WIP: (13,000 x 100%)
Normal lost units: (1,100 x 100%)
Abnormal lost units: (900 x 100%)
EUP Materials
Conversion costs:
Transferred Out:
From BWIP: (7,500 x 60%)
From SIP
Ending WIP: (13,000 x 70%)
Normal lost units: (1,100 x 75%)
Abnormal lost units: (900 x 75%)
EUP CC

39.

-065,000

4,500
65,000

69,500
9,100
825
675
80,100

(b)
Unit costs:
Materials: (P120,000 / 80,000)
Conversion costs: (P320,400 / 80,100)
Total unit costs
Assignment of Costs:
Completed and transferred out:
From BWIP: Cost last month
Cost added this month CC: (4,500 x P4)
Total costs of completed BWIP
From SIP: (65,000 x P5.50)
Total cost of units completed
Cost of normal lost units:
Materials: (1,100 x P1.50)
P1,650
Conversion costs: (825 x P4)
3,300
Total costs of completed units after adjustment for lost units
Ending WIP
Materials: (13,000 x P1.50)
Conversion costs: (9,100 x P4)
Total costs of EWIP

40.

65,000
13,000
1,100
900
80,000

P1.50
4.00
P5.50

P 24,200
18,000
42,200
357,500
399,700
4,950
P404,650

P19,500
36,400
P55,900

(a)
Materials: (900 x P150)
Conversion costs: (675 x P4)
Cost of abnormal lost units

P 1,350
2,700
P 4,050

8
41.

(a)
Equivalent Units of production
Transferred Out
Ending WIP
Normal lost units
Abnormal lost units
EUP

42.

Units
72,500
13,000
1,100
900

Materials
72,500
13,000
1,100
900
87,500

(c)
Unit costs:
Materials: (P10,400 + P120,000) = P130,000/ 87,500
Conversion costs: (P13,800 = P320,400) = P334,200 / 83,100
Total unit costs
Assignment of Costs:
Transferred Out: (72,500 x P5.51195)
Cost of normal lost units:
Materials: (1,100 x P1.49029)
Conversion costs: (825 x P4.02166)
Total costs of units transferred out

P1,639
3,318

(b)
P 1,341
2,715
P 4,056

(a)
Equivalent Units of Production
Completed
Ending WIP
Normal spoilage (70,000 x 10%)
Abnormal spoilage
EUP

45.

4,957
P404,573
P19,374
36,597
P55,971

Materials: (900 x P1.49029)

Conversion costs: (675 x P4.02166)
Cost of abnormal lost units
44.

P1.49029
4.02166
P5.51195
P399,616

Ending WIP:
Materials: (13,000 x P1.49029)
Conversion costs: (9,100 x P4.02166)
Cost of EWIP
43.

Conversion
72,500
9,100
825
675
83,100

Units
50,000
20,000
7,000
3,000

DM
50,000
20,000
0
0
70,000

CC
50,000
19,000
5,600
2,400
77,000

(a)
Unit costs:
Transferred In costs: (82,900 + 647,500) 80,000
Cost added this department:
Materials: (P0 + P655,200) 70,000
Conversion cost: (P42,000 + P1,251,600) 77,000
Total unit costs

P 9.13
9.36
16.80
P35.29

9
Number 45 (continued)
Cost of normal lost units:
Transferred In costs: (7,000 x P9.13)
Cost added this department:
Conversion costs: (5,600 x P16.80)
Cost of normal lost units
46.

P 63,910
94,080
P157,990

(d)
Completed and transferred out:
Completed and transferred out: (50,000 x P35.29)
Cost of normal lost units: (P157,990 x 50/70)
Adjusted cost of units completed and transferred out

47.

(a)
Ending work in process:
Transferred In costs: (20,000 x P9.13)
Cost added:
Materials: (20,000 x P9.36)
Conversion costs: (19,000 x P16.80)
Cost of normal lost units: (P157,990 x 20/70)
Cost of EWIP

48.

P1,764,500
112,850
P1,877,350

P182,600
P187,200
319,200

506,400
45,140
P734,140

(a)
Transferred In costs: (3,000 x P9.13)
Cost added:
Conversion costs: (2,400 x P16.80)
Cost of abnormal lost units

P27,390
40,320
P67,710

10
Solutions to Problems

Problem 13-1

1.

Assembly Department
Equivalent Units of Production
Month of May 1010
Materials:
Transferred Out to next department
Ending work in process: (100%)
Lost units
EUP

4,940
810
350
6,100

Labor:
Transferred Out to next department
Ending work in process: (810 x 60%)
Lost units
EUP

4,940
486
350
5,776

Overhead:
Transferred Out to next department
Ending work in process: (810 x 80%)
Lost units
EUP

4,940
648
350
5,938

11
2.

Assembly Department
Cost of Production Report
Month of May 2010
Quantity Schedule
Beginning WIP
Started in process
Total to account for

Units
200
5,900
6,100

Transferred Out to next department

Ending WIP
Lost units
Total accounted for

4,940
810
350
6,100

Cost Schedule
Materials:
Beginning WIP
Current month
Total materials
Labor:
Beginning WIP
Current month
Total labor
Overhead:
Beginning WIP
Current month
Total overhead
Total costs to account for
Costs accounted for:
Transferred Out to next department:
Completed
Cost of lost units
Costs of units transferred out
Ending WIP:
Materials
Labor
Overhead
Total EWIP
Total costs accounted for

Total Costs
P 37,498
847,002
884,500
8,268
173,676
181,944
22,764
410,710
433,474
P1,499,918

EUP
Unit Costs
=
200
= 5,900
6,100 = P145.00

P1,232,530
87,325
1,319,855

=
=

117,450
15,309
47,304
180,063
P1,499,918

=
=
=

5,776 =

5,938

31.50
73.00
P249.50

4,940 x P249.50
350 x 249.50
810 x
486 x
648 x

145.00
31.50
73.00

12
Problem 13-2

1.

Mixing Department
Equivalent Units of Production Average
Month of June 2010
Transferred In Costs:
Beginning work in process
Transferred In from prior department
EUP

500
14,300
14,800

Materials:
Transferred Out to finished goods
Ending work in process: (900 x 100%)
Normal lost units: (300 x 100%)
EUP

13,600
900
300
14,800

Conversion costs:
Transferred Out to finished goods
Ending work in process: (900 x 75%)
Normal lost units: (300 x 100%)
EUP

13,600
675
300
14,575

13

Problem 13-2 (continued)

2.

Mixing Department
Cost of Production Report
Month of June 2010
Quantity Schedule
Beginning work in process
Transferred In
Total to account for

Units
500
14,300
14,800

Transferred Out to finished goods

Ending work in process
Normal lost units
Total accounted for

13,600
900
300
14,800

Cost Schedule
Transferred In costs:
Beginning WIP
Current month
Total Transferred In costs
Cost in this department:
Materials: BWIP
Current month
Total materials
CC:
BWIP
Current month
Total CC
Total costs this department
Total costs to account for
Costs Accounted For:
Transferred Out to finished goods:
Completed
Normal lost units
Total costs
Ending work in process:
Transferred In costs
Cost this department:
Materials
Conversion costs
Total EWIP
Total costs accounted for

Total Costs
P

43,540
752,404
795,944

37,620
480,380
518,000
78,350
1,350,000
1,428,350
1,946,350
P2,742,294

EUP

Unit Costs

=
500
= 14,300
14,800 =

P 53.78

14,800 =

35.00

14,575 =

98.00
P186.78

P2,540,208
56,034
2,596,242

=
=

13,600
300

x P186.78
x 186.78

48,402

900

53.78

31,500
66,150
146,052
P2,742,294

=
=

900
675

x
x

35.00
98.00

14

Problem 13-3
1.

Finishing Department
Equivalent Units of Production
Month of July 2010
Transferred In Costs:
Beginning work in process
Transferred In from prior department
EUP

500
5,300
5,800

Materials:
Transferred Out to finished goods
Ending work in process: (450 x 80%)
Normal lost units: (150 x 100%)
EUP

5,200
360
150
5,710

Conversion costs:
Transferred Out to finished goods
Ending work in process: (450 x 331/3%)
Normal lost units: (150 x 100%)
EUP

5,200
150
150
5,500

15

Problem 13-3 (continued)

2.

Finishing Department
Cost of Production Report
Month of July 2010
Quantity Schedule
Beginning work in process
Transferred In from prior department
Total to account for

Units
500
5,300
5,800

Accounted for as follows:

Transferred Out to next department
Ending work in process
Normal lost units
Total accounted for

5,200
450
150
5,800

Cost Schedule
Transferred In costs:
Beginning WIP
Current month
Total TI costs
Cost this department:
Materials: Beginning WIP
Current month
Total materials
CC:
Beginning WIP
Current month
Total CC
Total cost in this department
Total costs to account for
Costs accounted for:
Transferred Out to next department:
Completed
Cost of normal lost units
Total costs of TO
Ending work in process:
Transferred in costs
Cost in this department:
Materials
Conversion costs
Total EWIP
Total accounted for

Total Costs
P 24,200
202,000
226,200
12,200
121,985
134,185
6,720
151,680
158,400
P292,585
P518,785

EUP

Unit Costs

5,800 =

P39.00

5,710 =

23.50

5,500 =

28.80
P91.30

P474,760
13,695
488,455

=
=

5,200 x
150 x

P91.30
91.30

17,550

450 x

39.00

8,460
4,320
30,330
P518,785

=
=

360 x
150 x

23.50
28.80

16
Problem 13-4
1.

Finishing Department
Equivalent Units of Production
Month of April 2010
Transferred In Costs:
Beginning work in process
Transferred In from prior department
Normal lost units
EUP

1,000
36,800
( 200)
37,600

Materials:
Transferred Out to finished goods
Ending work in process: (3,000 x 100%)
Abnormal lost units: (100 x 100%)
EUP

34,500
3,000
100
37,600

Conversion Costs:
Transferred Out to finished goods
Ending work in process: (3,000 x 60%)
Abnormal lost units: (100 x 100%)
EUP

34,500
1,800
100
36,400

17
Problem 13-4 (continued)
2.

Finishing Department
Cost of Production Report
Month of April 2010
Quantity Schedule
Beginning work in process
Transferred In from prior department
Total to account for

Units
1,000
36,800
37,800

Transferred Out to finished goods

Ending work in process
Normal lost units
Abnormal lost units
Total accounted for

34,500
3,000
200
100
37,800

Cost Schedule
Transferred In costs:
Beginning WIP
Current month
Total TI costs
Costs added in this department:
Materials: BWIP
Current month
Total materials
CC:
BWIP
Current month
Total CC
Total costs this department
Total costs to account for
Costs accounted for as follows:
Transferred Out to finished goods
Ending work in process:
Transferred In costs
Cost added this department:
Materials
Conversion costs
Total EWIP
Abnormal lost units:
Transferred In costs
Cost added this department:
Materials
Conversion costs
Total abnormal lost units
Total costs accounted for
3.

Total Costs
P

12,000
668,560
680,560

8,400
518,000
526,400
13,680
940,000
953,680
1,480,080
P2,160,640

EUP

Unit Costs

37,600 =

P18.10

37,600 =

14.00

36,400 =

26.20
P58.30

P2,011,350

34,500 x

P58.30

54,300

3,000 x

18.10

42,000
47,160
143,460

=
=

3,000 x
1,800 x

14.00
26.20

1,810

100 x

18.10

1,400
2,620
5,830
P2,160,640

=
=

100 x
100 x

14.00
26.20

Finished goods
Loss from abnormal spoilage
Work in process
To record costs transferred to finished goods
and abnormal spoilage.

2,011,350
5,830
2,017,180

18
Problem 13-5
1.

Mixing Department
Equivalent Units of Production
Month of March 2010
Transferred In Costs:
Transferred Out to next department
Ending work in process
EUP

2,900
100
3,000

Materials and Overhead:

Transferred Out to next department
Ending work in process: (100 x 80%)
EUP

2,900
80
2,980

Labor:
Transferred Out to next department
Ending work in process: (100 x 70%)
EUP

2,900
70
2,970

19

Problem 13-5 (continued)

2.

Mixing Department
Cost of Production Report
Month of March 2010
Quantity Schedule
Beginning work in process
Transferred In from prior department
Increase in units
Total to account for

Units
150
2,550
300
3,000

Accounted for as follows:

Transferred Out to next department
Ending work in process
Total accounted for

2,900
100
3,000

Cost Schedule
Total Costs
Transferred In Costs:
Beginning WIP
P 10,800
Current Month
214,200
Total TI costs
225,000
Cost added in this department:
Materials: BWIP
3,142
Current month
80,000
Total materials
83,142
Labor:
BWIP
2,013
Current month
66,000
Total labor
68,013
Overhead: BWIP
1,812
Current month
56,000
Total overhead
57,812
Total costs in this department P208,967
Total costs to account for
P433,967
Costs accounted for as follows:
Transferred Out to next department
P421,080
Ending work in process:
Transferred In costs
7,500
Cost added in this department:
Materials
2,232
Labor
1,603
Overhead
1,552
Total EWIP
12,887
Total accounted for
P433,967

EUP

Unit Costs

3,000 =

P 75.00

2,980 =

27.90

2,970 =

22.90

2,980 =

19.40
P145.20

= 2,900 x

P145.20

100

75.00

=
=
=

80
70
80

x
x
x

27.90
22.90
19.40

20

Problem 13-6
1.

Assembly Department
Equivalent Units of Production
Month of April 2010
Transferred In Costs:
Transferred In Current month
Adjustment for lost units
EUP

30,000
( 380)
29,620

Materials:
Transferred Out to the next department:
From BWIP: (2,000 x 0%)
From SIP: (30,720 2,000)
Ending work in process: (1,350 x 100%)
EUP

0
28,270

Conversion Costs:
Transferred Out to the next department:
From BWIP: (2,000 x 40%)
From SIP
Ending work in process: (1,350 x 80%)
EUP

800
28,270

28,270
1,350
29,620

29,070
1,080
30,150

21

Problem 13-6 (continued)

2.

Assembly Department
Cost of Production Report
Month of April 1010
Quantity Schedule
Beginning work in process
Transferred In from prior department
Total to account for
Accounted for:
Transferred Out to next department:
From BWIP
From SIP
Ending work in process
Lost units in production
Total accounted for
Cost Schedule
Beginning WIP
Costs in current month:
Transferred in costs
Costs added in this department:
Materials
Conversion costs
Total costs added
Total costs in current month
Total costs to account for

Units
2,000
30,000
32,000

2,000
28,270

30,270
1,350
380
32,000

Total Costs
P 139,368

EUP

Unit Costs

1,295,875

29,620 =

P43.75

226,593
1,026,306
1,252,899
2,548,774
P2,688,142

29,620 =
30,150 =

7.65
34.04
41.69
P85.44

Costs accounted for as follows:

Transferred Out to next department:
From BWIP:
Cost last month
P 139,368
Cost added this month:
Materials
0
Conversion costs
27,232 =
Total from BWIP
166,600
From SIP
2,415,389 =
Total costs of units TO
2,581,989
Ending work in process:
Transferred in costs
59,063 =
Cost added in this department:
Materials
10,327 =
Conversion costs
36,763 =
Total EWIP
106,153
Total costs accounted for
P2,688,142

800 x P34.04
28,270 x

85.44

1,350 x

43.75

1,350 x
1,080 x

7.65
34.04

22

Problem 13-7
1.

Total Equivalent Units of Production:

Cost added in March

Divided by cost per equivalent unit
Equivalent units of work done in March
2.

3.

Direct
Materials
P1,480,000

P20
74,000

Equivalent Units of Production of Actual Units:

Direct
Materials
Total equivalent units of production (no. 1)
74,000
Less: the following
Completed from BWIP
0
Completed from SIP: (61,000 - 10,000)
51,000
Normal spoilage: (61,000 x 11%)
6,710
Abnormal spoilage: (8,000 6,710)
1,290
Total
59,000
EUP of ending work in process
15,000
Divided by actual units of EWIP
15,000
Percentage of completion of EWIP

100%

Conversion
Costs
P942,000
P12
78,500

Conversion
Costs
78,500
7,500 (75%)
51,000
6,710
1,290
66,500
12,000
15,000
80%

23

Problem 13-7 (continued)

4.

Cooking Department
Cost of Production Report
For the Month of March 2010
Quantity Schedule
Beginning WIP
Started in Process
Total to account for
Completed and transferred out:
From BWIP
From SIP
Ending WIP
Normal spoilage
Abnormal spoilage
Total accounted for
Cost Schedule
Beginning WIP
Costs added in current month:
Direct materials
Conversion costs
Total costs to account for
Costs accounted for as follows:
Completed and transferred Out:
From BWIP:
Cost last month
Cost added this month:
Direct materials
Conversion costs
Total BWIP
From SIP
Normal spoilage
Total cost of units transferred out
Ending work in process:
Direct materials
Conversion costs
Total EWIP
Total costs accounted for

Units
10,000
74,000
84,000
10,000
51,000

61,000
15,000
6,710
1,290
84,000

Total Costs
P 250,000

EUP

Unit Costs

1,480,000
942,000
P2,672,000

74,000 =
78,500 =

P20
12
P32

P 250,000
0
90,000
340,000
1,632,000
214,720
2,186,720
300,000
144,000
444,000
P2,672,000

7,500 x

P12

= 51,000 x
= 6,710 x

32
32

=
=

20
12

15,000 x
12,000 x

24
Problem 13-8
Department B
Cost of Production Report
Month of January 2010
Quantity Schedule
Received from Department A
Transferred Out to finished goods
Ending work in process
Normal spoilage (9,000 x 5%)
Abnormal spoilage
Total accounted for
Cost Schedule
Transferred In costs
Cost added this department:
Materials
Conversion costs
Total costs to account for
Cost accounted for as follows:
Transferred Out to finished goods:
Completed
Normal spoilage:
Transferred In costs
Costs added this dept.:
Materials
Conversion costs
Total costs
Total costs Transferred Out
Ending work in process:
Transferred In costs
Cost added:
Materials
Conversion costs
Total EWIP
Abnormal spoilage:
Transferred In costs
Cost added:
Materials
Conversion costs
Total abnormal spoilage
Total accounted for

Actual
Units
12,000

Equivalent Units
Materials
Conversion

9,000
2,000
450
550
12,000

9,000
0
0
0
9,000

Total Costs
P 84,000

EUP
12,000

18,000
45,200
P147,200

9,000 =
11,300 =

2.00
4.00
P13.00

P117,000

9.000

P13.00

3,150

450

7.00

405

4.00

0
1,620
4,770
121,770

9.000
1,400
405
495
11,300
=

Unit Costs
P 7.00

14,000

2,000 x

7.00

0
5,600
19.600

1,400 x

4.00

3,850

550 x

7.00

495 x

4.00

0
1,980
5,830
P147,200

25
Problem 13-9
Assembly Department
Cost of Production Report
Month of April 20010
Quantity Schedule
Started in process

Actual
Units
10,000

Transferred Out to FG
7,000
Ending work in process
2,000
Normal spoilage (7,000 x 5%)
350
Abnormal spoilage
650
Total accounted for
10,000
Costs Schedule
Material A
Material B
Conversion costs
Total costs to account for
Costs accounted for as follows:
Transferred Out to FG:
Completed
Normal spoilage:
Material A
Material B
Conversion costs
Costs of normal spoilage
Total costs transferred out
Ending work in process:
Material A
Material B
Conversion costs
Total EWIP
Abnormal spoilage:
Material A
Material B
Conversion costs
Total abnormal spoilage
Total accounted for

Equivalent Units of Production

Material A
Material B
Conversion
7,000
2,000
350
650
10,000

7,000
2,000
0
0
9,000

7,000
1,900
315
585
9,800

Total costs
P 13,500
4,500
84,280
P102,280

EUP
10,000
9,000
9,800

=
=
=

Unit Costs
P 1.35
0.50
8.60
P10.45

P 73,150

7,000

P10.45

473
0
2,709
3,182
76,332

350

1.35

315

8.60

2,700
1,000
16,340
20,040

=
=
=

2.000
2,000
1,900

x
x
x

1.35
.50
8.60

877
0
5,031
5,908
P102,280

650

1.35

585

8.60

26
Problem 13-10
a.

Beginning WIP
Transferred In
Units to account for

3,000
45,000
48,000

Transferred Out
Ending WIP
Bikes lost
Units accounted for

40,000
4,000
4,000
48,000

1.

Therefore:
Bikes passing through Assembly
48,000
Less bikes in ending WIP (have not reached the inspection
Point so there is no way to determine acceptability)
(4,000)
Bikes reaching the inspection point
44,000
Normal defective rate
x
5%
Normal number of spoilage
2,200

2.

Total bikes lost

Normal spoilage
Abnormal spoilage

b.
Transferred Out
Ending WIP
Normal spoilage
Abnormal spoilage
EUP
c.
Beginning WIP
Current costs
Total cost
Divided by EUP
Cost per EUP
d. 1.
2.
3.
4.

e.

4,000
(2,200)
1,800
Units
40,000
4,000
2,200
1,800
48,000
Total
P 102,790
1,576,070
P1,678,860
P

35.45

Trans. In
40,000
4,000
2,200
1,800
48,000

Material
40,000
2,000
2,200
1,800
46,000

Trans. In
P 82,200
1,237,800
P1,320,000
48,000
P
27.50

Conversion
40,000
800
2,200
1,800
44,800

Material
P 6,660
96,840
P103,500
46,000
P 2.25

Conversion
P 13,930
241,430
P255,360
44,800
P 5.70

Normal damaged units: (2,200 x P35.45)

Abnormal damaged units: (1,800 x P35.45)
Good units completed: (40,000 x P35.45)
Ending WIP:
Transferred In: (4,000 x P27.50)
Cost added:
Material: (2,000 x P2.25)
Conversion: (800 x P5.70)
Total EWIP

P 77,990
P 63,810
P1,418,000

Cost of good bikes

Cost of Normal spoilage
Total costs of transferred out to the Packing Department

P1,418,000
77,990
P1,495,990

Average unit cost: (P1,495,990 / 40,000)

P 110,000
4,500
4,560
P 119,060

37.40

27

Problem 13-11
1.

Equivalent Units of Production

Cleaning Department:
Materials:
Completed and transferred out:
From BWIP: (1,000 x 0%)
From SIP: (7,400 1,000)
Ending WIP: (1,600 x 100%)
Normal lost units: (740 x 100%)
Abnormal lost units: (260 x 100%)
EUP
Conversion Costs:
Completed and transferred out:
From BWIP: (1,000 x 20%)
From SIP
Ending WIP: (1,600 x 25%)
Normal lost units: (740 x 100%)
Abnormal lost units: (260 x 100%)
EUP
Milling Department:
Materials:
Completed and transferred out:
From BWIP: (3,000 x 100%)
From SIP: (6,000 3,000)
Ending WIP: (4,000 x 0%)
Normal lost units: (300 x 100%)
Abnormal lost units: (100 x 100%)
EUP
Conversion Costs:
Completed and transferred out:
From BWIP; (3,000 x 20%)
From SIP
Ending WIP: (4,000 x 25%)
Normal lost units: (300 x 100%)
Abnormal lost units: (100 x 100%)
EUP

0
6,400

200
6,400

3,000
3,000

600
3,000

6,400
1,600
740
260
9,000

6,600
400
740
260
8,000

6,000
0
300
100
6,400

3,600
1,000
300
100
5,000

28

2.

Cleaning Department
Cost of Production Report
Month of May 1010
Quantity Schedule
Beginning WIP
Started in process
Total to account for
Competed and transferred out:
From BWIP
From SIP
Ending WIP (Squeeze)
Normal lost units
Abnormal lost units
Total accounted for
Cost Schedule
Beginning WIP
Current month:
Materials
Conversion costs
Total costs to account for
Costs accounted for:
Completed and transferred out:
From BWIP:
Cost last month (BWIP)
Cost added this month:
Materials
Conversion cost
Total BWIP
From SIP
Total costs of completed units
Normal lost units
Total costs of units transferred out
Ending WIP:
Materials
Conversion cost
Total EWIP
Abnormal lost units
Total accounted for

Units
1,000
9,000
10,000
1,000
6,400

7,400
1,600
740
260
10,000

Total Costs
P 18,000
90,000
80,000
P188,000

EUP

Unit Costs

9,000
8,000

=
=

P10.00
10.00
P20.00

200

P10.00

6,400

20.00

740

20.00

=
=

1,600
400

x
x

10.00
10.00

260

20.00

P 18,000
0
2,000
20,000
128,000
148,000
14,800
162,800
16,000
4,000
20.000
5,200
P188,000

29

Problem 13-11 (continued)

Milling Department
Cost of Production Report
Month of May 2010
Quantity Schedule
Beginning WIP
Transferred In from prior department
Total to account for
Completed and transferred out:
From BWIP
From TI
Ending WIP (Squeeze)
Normal lost units
Abnormal lost units
Total accounted for
Cost Schedule
Beginning WIP
Transferred In costs
Cost added this department:
Materials
Conversion costs
Total costs to account for
Cost accounted for:
Completed and transferred out:
From BWIP:
Cost last month
Cost added this department:
Materials
Conversion costs
Total BWIP
From TI
Total costs of completed units
Normal lost units
Total costs of units transferred out
Ending WIP:
Transferred in costs
Cost added:
Materials
Conversion costs
Total EWIP
Abnormal lost units
Total accounted for

Units
3,000
7,400
10,400
3,000
3,000

Total Costs
P 89,000
162,800
6,400
49,500
P307,700

6,000
4,000
300
100
10,400
EUP

Total Costs

7,400 =

P22.00

6,400 =
5,000 =

1.00
9.90
P32.90

= 3,000
=
600

x
x

P 1.00
9.90

= 3,000

32.90

32.90

4,000 x

22.00

1,000 x

9.90

100 x

32.90

P 89,000
3,000
5,940
97,940
98,700
196,640
9,870
206,510
88,000
0
9,900
97,900
3,290
P307,700

300