from department A, P1,800 of material costs added in

Lucas Co. Adds materials in the beginning of the Department B and P800 of conversion costs added in
process in the Forming Dept which is the first of two Department B.
stages of its production cycle. Information converting
the materials used in the Forming Dept in October are 2. Using weighted average method, the equivalent
as follows: units for the month of April were:

Dept. A Materials Conversion

Units Costs a.) 15,000 15,000 15,000
Work in 6,000 3,000 b.) 19,000 19,000 20,000
process, Oct. 1 c.) 20,000 20,000 18,000
Units started in 50,000 25,560 d.) 25,000 25,000 20,000
October
3. Using the weighted average method, what wast the
Units comp. & 44,000
cost per equivalent unit for conversion costs?
transf. To next
a.) P4,200/15,000 c.) 5,800/18,000
dept
b.) P5,800/20,000 d.) 5,000/18,000

Solution:

1. Using the weighted-average method, what was the Trans.in Mat CC

material cost of work in process at October 31?
Beg 6,000
WIP
a.) P3,000 c.) P5,250 Tran.In 14,000 100% 50%
b.) P6,000 d.) P6,120 20,000
comp. 15,000 15,000 15,000 15,000
Solution: Ending 5,000 100% 50% 5,000 5,000 3,000
EUP 20,000 20,000 18,000

Beg. Inv 6,000 100% EUP for conversion cost:

Un. started 50,000
56,000 5,000 / 18,000 = P0.28
Completed 44,000 100% 44,000
Sangley, Inc. Manufactures a product which goes
Ending 12,000 100% 12,000
through three consecutive processes, Process 1,
Inventory
Process 2, and Process 3. Data for the month of
EUP 56,000
September, 2006 are as follows:

Process 1 Process 2 Process 3

WIP beg 8,000 13,000 2,000
Unit Cost:
Mats. 20,000 4,000 5,000
(3,000+25,560) / 56,000 = P0.51
added
Ending Inventory x 0.51 = P6,120
CC 10,000 10,000 16,000
End WIP 6,000 9,000 4,000
On April 1, the Collins Co. had 6,000 units of work in
Dept B, the second and last stage of their production
cycle. The costs attached to these 6,000 units were P
12,000 of costs transferred in from Dept. A, P2,500 of 4. What was the value of the output transferred from
material cost added in Dept. B and P2,000 of Process 3 to the finished goods warehouse for the
conversion cost added in Dept. B. Materials are added month of September?
in the beginning of the process in Dept. B Conversion
was 50% complete on April 1. During April, 14,000 units a. P63,000 c. 67,000
were transferred in from Department A at a cost of b. P65,000 d. 69,000
P27,000; and materials costs of P3,500 and conversion
costs of P3,000 were added in Department B. On April
30,Dept B had 5,000 units in work in process 60%
complete as to conversion cost. The cost attached to
these 5,000 units were P10,500 of costs transferred in
 From the following data, question 16 to 18 would be
Solution: answered

Beg WIP 23,000 Opening 4,000 units

Materials Added 29,000 Inventory
CC added 36,000 % of completion Value
Total cost of Material 100% P1,992
Units 88,000 Labor 50% 1,074
Overhead 50% 846
Less: Ending WIP 19,000 Put in process
20,000 units
Cost of Units Materials value -
Transferred to 12,000
FG P69,000 Labor - P9,984
Overhead is
100% of labor
Ten ten Company produces a small standard cost
component in a process operation. There is a quality Units completed 21,000 units
control check at the end of the processing. Items which and transferred
fail this check are sold off as scrap for 1.80 per unit.
In process at 3,000 units
The expected rate of rejection is 10%. Normal loss is
end
not given a cost except that whatever scrap value it has
Materials 100%
credited to the process account. The cost/value of the
Labor & OH 60%
abnormal loss or gain of scrap, is written off to the profit
and loss account. Data for July are as follows:
6. The equivalent production for material is
Materials input 1,000 units P5,100
Under average Under FIFO
Conversion cost P3,000
A. 24,000 20,000
Output to 800 units
B. 20,000 21,000
finished goods
C. 20,000 24,000
D. 21,000 20,000
What was the full cost of the finished output that passed
the quality control check? Solution:
Average:
A. P7,040 Materials CC
B. P7,920 Units completed 21,000 21,000
C. P7,200 In process, end 3,000 1,800
D. P8,200 24,000 22,800
(wala sa choices sagot nubayan)
Solution:
FIFO method
1000 x .10 = 100 Unit in process
100 x 1.80 = 180 Beginning 4,000 2,000
Units started
5,100 - 180 = 4,920 (21,000-4,000) 17,000 17,000
1000 - 100 = 900 In process, end 3,000 1,800
Equivalent
4,920/900 = 5.47 unit cost of Mat Production 24,000 20,8000
(wala sa choices sagot nubayan)
800 x 5.47 = 4,376
Unit cost for Conversion
3000/900 = 3.33 7.The equivalent production labor and overhead is
3.33 x 80 = 2,664
a. 21,000 20,000
4,376 + 2,664 = 7,040 b. 24,000 22,000
c. 22,500 20,800
d. 21,000 21,000
 10. The peso amount of the 2,000 units 1/2 completed
8.The total cost of the work in process at the end is B is

a. 3,577 3,500 A. P2,200

b. 3,477 3,528 B. P1,600
c. 3,528 3,477 C. P2,000
d. 3,500 3,577 D. P1,400

Unit Cost:

Average method: Solution:

Materials (1,992 + 0.583
12,000) /24,000 Cost to be
CC (1,920 + 0.96 accounted for
19,968)/22,800 Beg 6,000 4,800
Total unit cost P 1.543 Breakdown:
Materials 5000
6000*.50
Labor 720
FIFO method OH 1,080
Materials 12,000/24,000 0.50 4,800
CC (19,968/20,800) 0.96 May 1-31
Total unit cost P 1.46 Materials 6,000
Labor 3,600

WIP end cost

Average:
Materials (3,000 x P0.583) 1,749
Conversion cost (3,000 x 60%) x 0.96 1,728
Total 3,477
FIFO method:

Materials(3,000 x 0.50) 1,500

Conversion cost (3,000 x 60%) x .96 1,728
Total 3,228

Complete the following process account of Lei

Manufacturing Company by supplying the peso
amounts of A and B on the credit side ot the account.

Process Y
May 1
6,000 units P4,800 May 1 - 31
1/3 completed 16,000 units completed A
May 1 - 31
Mat. 12,000@ 0.50 May 31
6,000 2,000 units 1/2 completed
Labor 3,600
Overhead 5,400

9.The peso amount of the 16,000 units completed A is

A. P17,800
B. P18,200
C. P17,600
D. P16,400