Goode Manufacturing has three producing departments in its factory.

The ending inventory in the Milling Department

consisted of 3,000 units. These units were 60% complete with respect to labor and factory overhead. Materials are
applied at the end of the milling process. Unit costs for the complete process in the Milling Department are: materials,
P1; labor, P2; and factory overhead, P3. The appropriate unit cost for each unit in the ending inventory is:

DM 1
DL 2
MOH 3
TMC 6

(5*60%)=3*3,000=P9,000

Read, Inc. instituted a new process in October. During October, 10,000 units were started in Department A. Of the units started,
7,000 were transferred to Department B, and 3,000 remained in work in process at October 31. The work in process at October 31
was 100% complete as to material costs and 50% complete as to conversion costs. Materials costs of P27,000 and conversion costs
of P39,950 were charged to Department A in October. What were the total costs transferred to Department B?

DM CC DM CC

WIP, Beg
Started 10,000
Transferred out 7,000 100% 100% 7,000 7,000
WIP,End 3,000 100% 50% 3,000 1,500
EUP 10,000 8,500
Cost P27,000 P39,950 =P66,950
Cost/EUP P2.7 P4.7.

Cost of Trans Out

DM (7,000*2.7) = P18,900
CC (7,000*4.7) = 32,900
TOTAL P51,800

Cost of WIP, End

DM (3,000*2.7) = P8,100
CC (1,500*4.7) = P7,050
TOTAL = P15,150

1. Weighted-average
2. FIFO
Dover Corporation's production cycle starts in the Mixing Department. The following information is available for April:

.................................................................................................................... Units
Work in process, April 1 (50% complete).................................................................................. 40,000
Started in April .................................................................................................................... 240,000
Work in process, April 30 (60% complete)............................................................................... 25,000

Materials are added at the beginning of the process in the Mixing Department. Using the average cost method, what are the
equivalent units of production for the month of April;1. Cost of Trans-out, Cost of Ending
DM CC
WIP, beg = P300,000 P270,000
Current = P600,000 520,000
Total =P900,000 P790,000

DM CC DM
CC
WIP, Beg 40,000 100% 50%
Started 240,000
Trans-out 255,000 100% 100% 255,000 255,000
WIP, End 25,000 100% 60% 25,000 15,000
EUP 280,000
270,000
Cost P900,000
P790,000 = P1,690,000

Cost/EUP P3.21 P2.93

Cost of Trans-out
DM (255,000*3.21) = P818,550
CC (255,000*2.93) = P747,150
Total = P1,565,700

Cost of WIP,End
DM (25,000*3.21) = P80,250
CC (15,000*2.93) = P43,950
Total = P124,200
Information concerning Department A of Neeley Company for June is as follows:

Materials
Units Costs
Beginning work in process.............................................................. 17,000 P12,800
Started in June................................................................................ 82,000 69,700
Units completed............................................................................... 85,000 P82,500
Ending work in process................................................................... 14,000

All materials are added at the beginning of the process. Using the average cost method, the cost per equivalent
unit for materials is:
1. Cost ng Trans Out
2. Cost of WIP, End

(P82,500/99,000units) = P0.83
(85,000*.83) = P70,550
(14,000*.83) = 11,620

Kennedy Company adds materials in the beginning of the process in the Forming Department, which is the first
of two stages of its production cycle. Information concerning the materials used in the Forming Department in
October is as follows:
 Materials
Units Costs
Work in process, October 1............................................................. 6,000 P 3,000
Units started.................................................................................... 50,000 25,560
Units completed and transferred out............................. 44,000 P28,560
WIP, end........................................................................... 12,000

Using the average cost method, what was the materials cost of work in process at October 31?

(P28,560/56,000units) = P0.51
Cost of Trans out (44,000*.51) = P22,440
Cost Of WIP, End (12,000*.51) = P6,120

5\
Simpson Co. adds materials at the beginning of the process in Department M. The following information pertains
to Department M's work in process during April:

Units
Work in process on April 1
(60% complete as to conversion cost).......................................................... 3,000
Started in April....................................................................................................... 25,000
Completed in April................................................................................................. 20,000
Work in process on April 30
(75% complete as to conversion cost).......................................................... 8,000
DM CC
WIP, Beg P56,000 70,000
Current Cost P120,000 80,000

Under the average costing method, Cost of Trans out and Cost of WIP,End ?

DM CC
WIP, Beg 3,000
Started 25,000
Trans-out 20,000 20,000 20,000
WIP, End 8,000 8,000 6,000
EUP 28,000 26,000
Cost P176,000 P150,000
Cost/EUP P6.29 P 5.77 = P12.06

Cost of Trans-out
(20,000*12.06) = P241,200

Cost of WIP, End

DM (8000*6.29) = P50,320
CC (6,000*5.77) = P34,620
Total = P84,940

During March, Quig Company's Department Y equivalent unit product costs, computed under the average cost
method, were as follows:

Materials.............................................. P1
Conversion........................................... 3
Transferred-in...................................... 5
Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as
to conversion costs) in work in process at March 31. The total costs assigned to the March 31 work in process
inventory should be:

Connor Company computed the flow of physical units completed for Department M for the month of March as
follows:

Units completed:
From work in process on March 1..................................................................... 15,000
From March production...................................................................................... 45,000
Total............................................................................................................ 60,000

DM CC
WIP, Beg P50,000 P70,000 =120,000
Current Cost 100,000 150,000

Materials are added at the beginning of the process. The 12,000 units of work in process at March 31 were
80% complete as to conversion costs. The work in process at March 1 was 60% complete as to conversion
costs. Using the fifo method, the equivalent units for March conversion costs were:

DM CC DM CC
WIP, Beg 15,000 0% 40% 0 6,000
Started 57,000
Trans-out 60,000 100% 100% 45,000 45,000
WIP, End 12,000 100% 80% 12,000 9,600
EUP 57,000 60,600
Current Cost P100,000 P150,000
 Cost/EUP P1.75 P2.48

Cost of Trans-out
WIP,Beg P120,000
CC (40%)(6000*2.48) 14,880
DM (45,000*P1.75) 78,750
CC (45,000*P2.48) 111,600
Total = P325,230

Cost of WIP, End

DM (12,000*P1.75) 21,000
CC (9,600*2.48) 23,808
Total = 44,808

Connor Company computed the flow of physical units completed for Department M for the month of March as
follows:

Units completed:
From work in process on March 1..................................................................... 15,000
From March production...................................................................................... 45,000
Total............................................................................................................ 60,000

DM CC
 WIP, Beg P50,000 P70,000 =120,000
Current Cost 100,000 150,000

Materials are added at the beginning of the process. The 12,000 units of work in process at March 31 were
80% complete as to conversion costs. The work in process at March 1 was 60% complete as to conversion
costs. Using the average method, the equivalent units for March conversion costs were:
DM CC

WIP, Beg 15,000

Started 57,000
Trans-out 60,000 60,000 60,000
WIP,End 12,000 12,000 9,600
EUP 72,000 69,600
Total Cost P150,000 220,000
Cost/EUP P2.08 P3.16 = 5.24

Cost of Trans-out
=60,000*5.24 = P314,400

Cost of WIP, End

DM (12,000*2.08) = P24,960
CC (9,600*3.16) = P30,336
Total = P55,296

The Hilo Company computed the physical flow of units for Department A for the month of April as follows:

Units completed:
From work in process on April 1....................................................................... 10,000
From April production........................................................................................ 30,000
Total............................................................................................................ 40,000

Materials are added at the beginning of the process. Units of work in process at April 30 were 8,000. The work
in process at April 1 was 80% complete as to conversion costs, and the work in process at April 30 was 60%
complete as to conversion costs. What are the equivalent units of production for the month of April using the fifo
method?
 Department A is the first stage of Mann Company's production cycle. The following information is available for
conversion costs for the month of April:

...................................................................................................................... Units
Beginning work in process (60% complete)........................................................... 20,000
Started in April........................................................................................................ 340,000
Completed in April and transferred to Department B.............................................. 320,000
Ending work in process (40% complete)................................................................ 40,000

WIP, Beg DM – P60,000 CC – 70,000

Current Cost DM – P120,000 CC – P150,000

Using the fifo method, calculate the cost of units transferred to Department B and Cost of Work-in-process on
April 30,
CC

WIP, Beg 20,000 8,000

Started 340,000
Trans-out 320,000 300,000 *.46 = P138,000+70,000 + (8,000*.046) = P211,680
WIP, End 40,000 16,000 *P0.46 = P7,360
EUP 324,000
Current Cost P150,000
Cost/ EUP P0.46