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Final Term Assignment 2 On Cost of Production Report - Average Costing

This document contains a cost of production report and average costing multiple choice questions. There are 5 multiple choice questions that provide production information for different companies and departments. Equivalent units, material and conversion costs, and work in process inventory are calculated using average costing methods.

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Uchiha Goku
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341 views2 pages

Final Term Assignment 2 On Cost of Production Report - Average Costing

This document contains a cost of production report and average costing multiple choice questions. There are 5 multiple choice questions that provide production information for different companies and departments. Equivalent units, material and conversion costs, and work in process inventory are calculated using average costing methods.

Uploaded by

Uchiha Goku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Name: Lucas, Yhenuel Josh C.

Section: AC 103
Date: 5/17/2021

Score:

Final Term Assignment 2 on Cost of Production Report – Average Costing

ADAPTED: Pedro P. Guerrero, Cost Accounting – Principles and Procedural Applications, 2014-2015
Edition

MULTIPLE CHOICE: Select the best answer by choosing the appropriate the letter. ( 20 points )

1. Red Corporation’s production starts in Department 1. The following data is available for April:
Units work in process, April 1 ( 50% complete) 40,000
Units started in April 240,000
Units work in process, April 30 ( 60% complete ) 25,000

Materials are added at the beginning of the process in Department 1. Using the average cost
method, what are the equivalent units of production for the month of April?

Materials Conversion Costs


a. 255,000 255,000
b. 270,000 280,000
c. 280,000 270,000
d. 305,000 275,000
2. Information concerning Department 1 of Black Company for June is as follows:
Units Material Costs
Work in process, beginning 17,000 P12,800
Started in June 82,000 69,700
Units completed 85,000
Work in process, ending 14,000

All materials are added at the beginning of the process. Using the average cost method, the unit
cost for material is:
a. P0.825
b. P0.833
c. P0.85
d. P0.97
3. White Company adds materials in the beginning of the process in Department 1, which is the
first of two stages of its production cycle. Information concerning the materials used in
Department 1 in July is as follows:
Units Material Costs
Work in process, July 1, 2014 6,000 P 3,000
Started in process 50,000 25,560
Completed and transferred out 44,000

Using the weighted average cost method, what was the materials cost of work in process at July
31?
a. P3,000
b. P6,120
c. P3,060
d. P6,000
4. During March, Brown Company’s Department 2 equivalent unit costs, computed under the
average cost method were as follows:
Materials P10
Conversion 30
Transferred in 50

Materials are introduced at the end of the process in Department 2. 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:
a. P360,000
b. P248,000
c. P272,000
d. P284,000
5. Green Company adds materials at the beginning of the process in Department O. The following
data pertains to Department O’s work in process during April:
Units work in process on April 1:
( 60% complete as to conversion cost) 3,000
Units started in April 25,000
Units completed in April 20,000
Units work in process on April 30:
( 75% complete as to conversion cost ) 8,000

Under the average costing method, the equivalent units for conversion cost is:
a. 26,000
b. 25,000
c. 24,000
d. 21,800

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