Chapter 12

1

CHAPTER 12 Answers to Multiple Choice - Theoretical

1. 2.

a c

3. 4.

a b

5. . !.

b a a

"olutions to Multiple Choice # Co$putational 1.

%b&

Units completed: From BWIP: (50% x 100) From started in process (100%) Work in process, end: (5% x !00) E'P 2.

3.

50 300

350 150 5((

%)&

Unit material cost: "aterial cost t#is mont# $iided &' UP Unit cost

P!0,000  500 P 1,*00

En)in* wor+ in process, %P144(  15(&

P21(((

%a&

 Equivalent unit of production production – Labor  +ranserred o-t: From BWIP: (.0% x 1,000) From transerred in ndin/ ork in process: (0% x *,000) UP

.00 !.,000

Unit labor cost: a&or cost t#is mont# $iided &' UP Unit la&or cost Transferred Transferred out: From BWIP: a&or cost last mont# a&or cost t#is mont# (.00 x P410) From transerred in (!.,000 x P410) /0erhea) cost o units transerre) out

!.,.00 !,00 !2,*00

P!3,1*0  !2,*00 P 410

P 3,.00 *,.0

P ,*.0 !10,.00 P21((

! 4.

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 Equivalent units of production production – Overhead: +ranserred o-t: From BWIP (3,300 x !63) From transerred in ndin/ ork in process (!,000 x 7) UP

5.

P3,0!5 1.,200 P !4!5

Transferred Transferred out: From BWIP: 8er#ead cost last mont# P !,33! 8er 8er#e #ead ad cost cost t#is t#is mont mont# # (!,! (!,!00 00 x P!4! P!4!5) 5) *,25 *,250 0 From transerred in (13,!00 x P!4!5) /0erhea) cost o units transerre) out

P ,! ,!! ! !2,00 P32

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1!,00 .,000

,00 2,.00 4((

P*.,000  10*,000 P 4.5(

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;onersion cost inc-rred t#is mont# $iided &' UP 'nit con0ersion cost .

!,*00 !1,.00 1(4(((

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"aterial cost inc-rred t#is mont# $iided &' UP 'nit $aterial cost .

.,*00 .,000

%)&

+ranserred o-t: From BWIP (0% x 1.,000) From 9IP ndin/ ork in process (* ( *0% x !*,000) E'P # con0ersion cost !.

15,*00 1,500 1.,200

Unit overhead cost: 8er#ead cost inc-rred t#is mont# $iided &' UP Unit oer#ead cost

+ranserred o-t: From BWIP (*0% x 1.,000) From 9IP 2!,000  1.,000) ndin/ ork in process (20% x !*,000) E'P # $aterials .

!,!00 13,!00

P5*,0*0  2,*00 P 5. 5.3

%a&

"aterials (!1,.00 x P*450) ;onersion cost (2,.00 x P543) Cost o EP

P 2,!00 55,2. P1531

3 1(.

%a& E6ui0alent units o pro)uction,  Materials: +ranserred o-t: From BWIP (5,000 x 0%) From 9IP (21,*00  5,000) ndin/ ork in process (*,000 x 100%) UP

Conversion cost: +ranserred o-t: From BWIP (5,000 x .0%) From 9IP ndin/ ork in process (*,000 x 0%) UP

<0< .,*00

3,000 .,*00

'nit costs, "aterials: (P*33,2!0 6 20,*00) ;onersion cost: (P115,!50 6 2!,!00) +otal -nit costs Transerre) out, From BWIP: ;ost last mont# ;ost t#is mont#: ;onersion cost (3,000 x P1,!5) From 9IP (.,*00 x P.405) Total cost transerre) out 11.

2,*00 !,00 2!,!00

P *40 1,!5 P .405

P!*,5 3,50

P !,.!5 5!!,!0 P551345

%a&

"aterial costs: (*,000 x P*40) ;onersion costs: (!,00 x P14!5) Cost o en)in* wor+ in process 12.

.,*00 *,000 20,*00

P12,!00 3,500 P22!((

%a&

=allons transerred o-t =allons in endin/ inentor' +otal -nits acco-nted or =allons in &e/innin/ inentor' 7allons starte) in April

!*!,000 !3,500 !.5,500 (3.,000) 225((

* 13.

%a& E6ui0alent 'nits o Pro)uction,  Material: +ranserred o-t: From BWIP: (0%) From 9IP: (! (!*!,000  3.,000) ndin/ ork in process: (!3,500 x 100%) UP

< 0 < !0.,000

 Labor: +ranserred o-t: From BWIP: (3.,000 x .5%) From 9IP: (100%) ndin/ ork in process: (!3,500 x !5%) UP

!3,*00 !0.,000

Overhead: +ranserred o-t: From BWIP: (3.,000 x *0%) From 9IP ndin/ ork in process: (!3,500 x 30%) UP

1*,*00 !0.,000

'nit costs, "aterial costs: (P1,131,*35 6 !!2,500) a&or costs: (P*51,! 6 !35,!5) 8er#ead costs: (P3,330 6 !!,*50) +otal -nit costs Co$plete) 8P ;ost last mont# ;ost t#is mont#: "aterials: a&or: (!3,*00 x P142!) 8er#ead: (1*,*00 x P34*0) Total costs o co$plete) 8P 14.

!!2,*00 5,5 !35,!5

!!0,*00 ,050 !!4*50

P *423 142! 34*0 P104!5

P!.,*00 <0< **,2! *,2.0

23, P3!(2

%a&

Units completed: From BWIP (>13) From 9IP: (!0.,000 x P104!5) Total costs o units co$plete) 15.

!0.,000 !3,500 !!24500

P 30,! !,111,500 P241!

%a&

+otal costs o -nits completed (>1*) $iided &' total -nits completed ?era/e -nit cost

P!,*1,  !* !*!,000 P 104!.

5 1.

%a&

"aterials: (!3,500 x P*423) a&or: (5,5 x P142!) 8er#ead: (,050 x P34*0) Total cost o EP 1!.

P115,55 11,!0 !3,20 P1511(5

%b&

 Equivalent Units of Production Production – Materials Units completed: From BWIP: (!0 x 0%) From 9IP: (20  !0) 100% ndin/ ork in process: (10 x 100%) UP

0 0

Unit material cost: "aterial cost inc-rred t#is mont# $iided &' UP 'nit $aterial cost 1.

Unit conversion cost: ;onersion costs inc-rred t#is mont# $iided &' UP 'nit con0ersion cost

  5

P3,*0,000  5 5 P 44(((

P!,!0,000 35!,000 P232(((

%a&

+ranserred o-t: From BWIP >(12) From 9IP (0 x P1**,000) +otal cost o -nits completed $iided &' total -nits completed A0era*e unit cost 21.

 0

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;ost inc-rred last mont# ;ost inc-rred t#is mont#: ;onersion costs: ( x P**,000) Total costs o co$plete) 8P 2(.

P,000,000  0 0 P 1(((((

%a&

 Equivalent Units of Production Production – Conversion Cost: Units completed: From BWIP: (!0 x *0%) From 9IP ndin/ ork in process: (10 x 0%) UP

1.

0 10 0

%a&  "ee 92( abo0e.

P !,.3!,000 10,00,000 P1!,1!,000  20 P 144244

. 22.

%a&

"aterials: (10 x P100,000) ;onersion cost: ( x P**,000) Cost o EP in0entor: 23.

P1,000,000 30,000 P12((((

%a&

@-ialent Units o Prod-ction < "aterials Units completed: From BWIP: (10,000 x 0%) From 9IP: (3*,000  10,000) 100% ndin/ ork in process: (1.,000 x 100%) UP  "aterials

0 !*,000

'nit $aterial cost, %P2(((( ; 4((((& 24.

P !.((

%a&

@-ialent Units o Prod-ction  ;onersion ;osts: Units completed: From BWIP: (10,000 x 30%) From 9IP ndin/ ork in process: (1.,000 x 50%) UP  ;onersion costs

3,000 !*,000

'nit con0ersion costs, %P3!1((( ; 35(((& 25.

P1(.(

P.0,000 P <0< 31,00

31,00 P1((

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Units +ranserred o-t: From BWIP (>!5) From 9IP: (!*,000 x P14.0) +otal costs o -nits transerred o-t $iided &' -nits transerred o-t A0era*e unit cost o units transerre) out 2!.

!,000 ,000 35,000

%)&

;ost last mont# ;ost added t#is mont#: "aterial cost ;onersion costs: (3,000 x P104.0) Total cost o co$pete) 8P 2.

!*,000 1.,000 *0,000

P 21,00 *!!,*00 P51*,!00  3*,000 P 15.12

%a&

"aterial cost: (1.,000 x P) ;onersion costs: (,000 x P104.0) Total costs o EP in0entor:

P11!,000 *,00 P1((

 2.

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+ranserred in costs t#is mont# $iided &' -nits transerred in t#is mont# Unit transerred in cost 2.

P5,.00  0 P 1,00

%a& E6ui0alent 'nits o Pro)uction,  Materials: ;ompeted and transerred o-t: From BWIP: (*0 x 100%) From transerred in: (20  *0) 100% ndin/ ork in process: (30 x 0%) UP

Conversion costs:: ;ompleted and transerred o-t: From BWIP: (*0 x !5%) From transerred in ndin/ ork in process: (30 x 50%) UP

*0 50

10 50

'nit costs, Materials, %P3((( ; (& Con0ersion costs, %4!25 ; !5& 3(.

.0 15 5

P4(( P3

%a&

Units completed and transferred transfer red out: From BWIP: ;ost last mont# ;ost added t#is mont#: "aterials: (*0 x P*00) ;;: (10 x P..3) From transerred in: (P1400 A P*00 A P..3) x 50 Total costs o units co$plete) an) transerre) out

P54!00 1.,000 .,.30

 Ending or! in process: process: +ranserred in costs: (30 x P1,00) ;osts added t#is department: ;onersion cost: (15 x P..3) Total costs o EP 31.

20 0 20

P 2,30 10.,.50 P14(

P 3!,100 2,2*5 P 42(45

%)&

 Equivalent Units of Production Production – Materials: Units completed: From BWIP (150 x 100%) From +ranserred In: (5!5  150) ndin/ ork in process (5 x 0%) E'P # Materials

150 35

5!5 0 525

  No. 31 (continued)

 Equivalent Units of production production – Conversion Costs: Units completed: From BWIP: (150 x 30%) From +ranserred In ndin/ ork in process (5 x .0%) E'P # CC 32.

*5 35

%a&

"aterial cost inc-rred t#is mont# $iided &' UP 'nit $aterial cost 33.

P21,!50  5!5 P 15(

%a&

;onersion costs inc-rred t#is mont# $iided &' UP 'nit con0ersion costs 34.

P325,!50  *.5 P 5(

%a&

;ost last mont# ;ost t#is mont#: "aterials: (150 x 1,50) ;onersion costs: (*5 x P50) Total costs o co$plete) 8P 35.

*!0 *5 45

P3!,2.5 P!4500 3,!50

315,50 P43!15

%a&

+ranserred o-t to inis#ed /oods: From BWIP ( >3*) From +ranserred In: (P1,0 A P1,50 A P50) x 35 Total cost o units transerre) out to inishe) *oo)s

P .*3,15 1,..,!50 P2315

" Unit transferred in cost: #P$%&'()) * +(), - P.'$$)

3.

%a&

+ranserred in costs rom prior department: (5 x P1,0) ;ost added in t#is department: ;onersion costs: (*5 x P50) Total costs o en)in* wor+ in process

P 13!,50 3,!50 P 1! 1 !1(((

34

 Equivalent Units of Production Production ;ost added in c-rrent mont# $iided &' cost per UP UP

 Number 37 (continued):

Trans ranse err rre) e) n Costs P!3*,000  P !. 2,000


Con0 Con0er ersi sion on Costs P!!,00  !040 11,000

2

Transferred Transferred /n costs: +otal UP 9tarted and completed (12,000 < 15,000) UP  +ranserred in  0irect materials: +otal UP +ranserred o-t From BWIP (15,000 x 100%) From started and completed UP  WIP Conversion Costs: +otal UP +ranserred o-t: From BWIP (15,000 x *0%) From started and completed UP  WIP

Percenta*e o Co$pletion, Transerre) in costs, %5((( ; 5(((&
2,000 (*,000) 5,000

12,000 15,000 *,000

(12,000 ) <0<

11,000 .,000 *,000

(10,000) 1,000

1((= (= 2(=

%a&

Transferred Transferred out: From BWIP: ;ost last mont# ;ost added t#is mont#: "aterials (15,000 x P1!) ;;: (.,000 x P!040) +otal costs o BWIP From started and completed (*,000 x P540) Total costs o units transerre) out  Ending 1or! 1or! /n Process: +ranserred in costs rom prior department (5,000 x P!.) ;ost added t#is department: ;onersion costs: (1,000 x P!040) Total costs o EP

"olutions to Proble$s

P 5*0,000 10,000 1!*,00 **,000 !35,!00 P1(((((

P 130,000 !0,00 P 15(((

10

Proble$ 12-1 1.

E6ui0alent 'nits o Pro)uction,  Materials: ;ompleted and transerred o-t: From BWIP: (300 x 0%) From 9IP: (!,000  300) 100% ndin/ ork in process: (500 x 100%) UP Conversion Costs: ;ompleted and transerred o-t: From BWIP: (300 x .0%) From 9IP ndin/ ork in process: (500 x !5%) UP

<0< 1,00

10 1,00

'nit Costs, "aterials: (P.22,.00 6 !,!00) ;onersion costs: (P*!5,0.0 6 !005) +otal -nit costs Total costs # >or$in*
1,0 1!5 !,005

P31 !1! P530

P P.22,.00 *!5,0.0

2.,!50

1,1!*,..0 P1(3541(

P2.,!50 3,1.0

 Ending work in process: "aterials: (500 x P31) ;onersion costs: (1!5 x P!1!) Total costs o EP 24

1,00 500 !,!00

1or! in process – 2orming 0epartment .'.3+'&&)  4ccount pa5able #materials, 6arious accounts #conversion costs, To record direct materials and conversion cost s incurred   4nd used in production production during 4pril7 1or! in process – 2inishing 0epartment .')8('+.) 1or! in process – 2orming 0epartment To record record costs of units transferred to 2inishing 0epartment7

P 1! 1!*,*10 201,000 P1(3541(

P 152,000 !.,500 P 155((

&%%'&)) +3(')&)

.')8('+.)

11 Proble$ 12 -2 2.

E6ui0alent 'nits o Pro)uction :  Materials: ;ompleted and transerred o-t: From BWIP: (500 x 100%) From 9IP: (!,100  500) 100% ndin/ ork in process: (*00 x 0%) UP on!ersion costs: ;ompleted and transerred o-t: From BWIP: (500 x *0%) From 9IP ndin/ ork in process: (*00 x 30%) UP

500 1,.00

!,100 <0   !,100

!00 1,.00

1,00 1!0 1,2!0

'nit Costs, +ranserred in costs: (P1,035,*10 6 !,000) "aterials costs: (P!31,000 6 !,100) ;onersion costs: (P3*,000 6 1,2!0) +otal -nit costs Total Costs # >inishin*
P51405 110400 !00400 P!405

P !*,00 1,035,*10 P!31,000 3*,000

P!*,00 55,000 *0,000

 Ending "ork "ork in #rocess: +ranserred In costs: (*00 x P51405) ;ost added: ;onersion costs: (1!0 x P!00) +otal costs o WIP 2.

.15,000 P1,2,110 P1,2, 110

P 3*!,00 1,3!*,3! P1,..,0!

P !0,0! !*,000 P !31,0!

"ork in process $ %inis&ing 'epartment 13*+1 "ork in process $ %orming 'epartment ,o record transferred in costs from %orming 'epartment.

13*+1

%inis&ed goods "ork in process $ %inis&ing 'epartment ,o record cost units transferred out to finis&ed goods.

1--7/

1--7/

1! Proble$ 12-3 1.

2.

E6ui0alent 'nits o Pro)uction,  Materials: ;ompleted and transerred o-t: From BWIP: (*,000 x 0%) From 9IP: (50,000  *,000) 100% ndin/ ork in process: (.,000 x 100%) UP

<0< *.,000

on!ersion osts : ;ompleted and transerred o-t: From BWIP: (*,000 x *0%) From 9IP ndin/ ork in process: (.,000 x 5%) UP

1,.00 *.,000

*.,000 .,000 5!,000

*,.00 *,500 5!,100

Coo+in*
Units *,000 5!,000 5.,000

;ompleted and transerred o-t: From BWIP *,000 From 9IP *.,000 ndin/ ork in process +otal acco-nted or

50,000 .,000 5.,000

ost 2c&edule BWIP ;ost added t#is mont#: "aterials ;onersion costs +otal costs to acco-nt or

Completed and transferred Out: From BWIP: ;ost last mont# ;ost added t#is mont#: ;onersion costs +otal BWIP From 9IP +otal costs transerred o-t  Ending or! in process: process: "aterials ;onersion costs +otal WIP +otal costs acco-nted or

,otal ost P *,**

525,2!0 .0,.2! P1,5*1,0.0

EU#

Unit osts

 

5!,000 C 5!,100 C

P114*. 1.45! P!42

!.,000 110,0 1,!,00 P1,!2,2.0

C

1,.00 x

P1.45!

C

*,.00 x

! !42

P

C C

.,000 *,500

114*. 1.45!

P

*,**

.,.0 *,3*0 1*3,100 P1,5*1,0.0

x x

13

Proble$ 12-4

1.

2.

E6ui0alent 'nits o Pro)uction,  Materials: +ranserred o-t: From BWIP: (,000 x !0%) From 9IP: (**,000  ,000) ndin/ ork in process: (*,000 x 0%) UP

1,.00 3.,000

 abor: +ranserred o-t: From BWIP: (,000 c .0%) From 9IP ndin/ ork in process: (*,000 x 50%) UP

*,00 3.,000

4!er&ead: +ranserred o-t: From BWIP: (,000 x 0%) From 9IP ndin/ ork in process: (*,000 x *0%) UP

5,.00 3.,000

Curin*
+ranserred o-t: From BWIP From +ranserred In ndin/ ork in process +otal acco-nted or

Units ,000 *0,000 *,000

,000 3.,000

**,000 *,000 *,000

3,.00 !,00 *0,*00

*0,00 !,000 *!,00

*1,.00 1,.00 *3,!00

1*

 #roblem 15+ (continued)

ost 2c&edule Be/innin/ ork in process +rans ranse err rred ed In cost cost < c-rr c-rren entt mont mont# # ;ost added t#is department: "aterials a&or 8er#ead +otal costs to acco-nt or

;osts acco-nted or as ollos: Transferred Transferred out: From BWIP: ;ost last mont# ;ost added t#is mont#: "aterials a&or 8er#ead +otal BWIP From +ranserred In +otal costs transerred o-t  Ending 1or! 1or! in process: +ranserred in costs ;ost added: "aterials a&or 8er#ead +otal WIP +otal costs acco-nted or

,otal osts P !0!,5!0 .*0, .*0,00 000 0

EU#

Unit osts



*0,0 *0,000 00

C P1.4 P1.400 00

  

*0,*00 *!,00 *3,!00

C C C

C C C

1,.00 *,00 5,.00

x x x

P 400 *400 !400

C

3.,000

x

30400

.*,000

C

*,000

x

1.400

!!,*00 ,000 3,!00 2,.00 P1,*!3,3!0

C C C

!,00 !,000 1,.00

x x x

400 *400 !400

3!3,!00 11,!00 .,*00 P1,*!3,3!0

400 *4 *400 !4 !400 P30400

P !0 !0!,5!0 1!,00 12,!00 11,!00 !*5,!0 1,00,000 1,3!5,!0

Proble$ 12-5

15

1.

E6ui0alent 'nits o Pro)uction,  Materials: +ranserred o-t to inis#ed /oods: From BWIP: (1,000 x 10%) From 9IP: (! (!,00  1,000) 100% ndin/ ork in process: (1,!00 x 50%) UP

100 1,00

on!ersion costs: +ranserred o-t to inis#ed /oods: From BWIP: (1,000 x !0%) From 9IP ndin/ ork in process: (1,!00 x *0%) UP 2.

1,200 .00 !,500

!00 1,00

!,000 *0 !,*0

Asse$bl:
Units 1,000 3,000 *,000

+ranserred o-t to inis#ed /oods: From BWIP From 9IP ndin/ ork in process +otal acco-nted or

1,000 1,00

ost 2c&edule Be/innin/ ork in process ;osts rom prior department ;osts added t#is department: "aterials ;onersion costs +otal to acco-nted or Transferred Transferred out to t o finished goods: From BWIP: ;ost last mont# ;-rrent costs: "aterials ;; +otal BWIP From 9IP +otal costs transerred o-t  Ending or! in process: process: ;ost ;ost rom rom prio priorr depa depart rtme ment nt ;ost added t#is department: "aterials ;onersion cost +otal BWIP +otal acco-nted or

,otal osts P 32,000 !2!,500

!,00 1,!00 *,000 EU#

Unit osts



3,000

C

P 2450

 

!,500 !,*0

C C

53 53450 10 10.400 P!5400

5,350 !1,!00 *!3,550 *.!,.00 P .,150

C C

100 !00

x x

53450 10.400

C

1, 1 ,00

x

!5400

11,0 1,000 00

C

1,!0 1,!00 0

x

245 2450 0

3!,100 50,0 122,20 P1,0.,130

C C

.00 *0

x x

53450 10 1 0.400

133,50 !.!,0 P1,0.,130

P 32,000

Proble$ 12-

1.

1.

E6ui0alent 'nits o Pro)uction,  Materials: +ranserred o-t: From BWIP: From 9IP ndin/ ork in process UP on!ersion costs: +ranserred o-t: From BWIP From WIP ndin/ ork in process UP

2.



<0< *0,000 10,000 (100%) 50,000

<0< 3.,000 2,000 (100%) *5,000

1,50 (35%) *0,000 ,500 (5%) *2,!50

*,!00 (.0%) 3.,000 *,500 (50%) **,00

or the Month o Ma: 2(1( 0uantit 2c&edule Be/innin/ ork in process 9tarted in process +otal to acco-nt or

Units 5,000 50,000 55,000

+ranserred o-t to $epartment !: From BWIP From 9IP ndin/ ork in process +otal acco-nted or

5,000 *0,000 10,000 55,000

ost 2c&edule Be/innin/ ork in process ;ost added t#is mont#: $irect materials ;onersion costs +otal to acco-nt or

;osts acco-nted or as ollos: Transferred Transferred out to t o 0epartment3: From BWIP: ;ost last mont# ;ost added: ;; +otal BWIP From 9IP +otal costs transerred o-t  Ending or! in process: process: "aterials ;onersion costs +otal costs o BWIP +otal acco-nted or  #roblem 15- (continued)

,otal osts P 3! 3!,*5

.5,000 1*!,!5 P!*0,300

EU#

Unit osts

 

50,000 C *2,!50 C

P1430 !420 P*4!0

5,05 3,550 1.,000 !05,550

C

1,50 x

P!420

C

*0 *0,000 x

*4!0

13,000 !1,50 3*,50 P!*0,300

C C

10,000 x ,500 x

1430 !420

P 3!,*5

1


+ranserred o-t to inis#ed /oods: From BWIP From +I ndin/ ork in process +otal acco-nted or ost 2c&edule Be/innin/ ork in process ;ost rom prior department ;ost added t#is department: $irect materials ;onersion costs +otal to acco-nt or

Units ,000 *5,000 5!,000

,000 3.,000

,otal costs P .5 .5,5.0 !05,550

EU#

Unit osts



*5,000

C

P*45.

 

*5,000 **,00

C C

1400 !4*. P40!

C

*,!00

x P!4*.

C

3.,000

x

40!

P *1,110

C

2,000 2,000

x

*45.

2,000 11,00 .1,10 P*!.,0!

C C

2,000 *,500

x x

1400 !4*.

*5,000 102,2.! P*!.,0!

;ost acco-nted or: Transferred Transferred out to t o finished goods: From BWIP: ;ost last mont# P .5,5.0 ;ost added t#is mont#: ;; 10,33! +otal BWIP 5,2! From transerred in !2,000 +otal costs transerred to F= P3.*,2!  Ending or! in process: process: +ranserred In ;ost added: "aterials ;onersion costs +otal WIP +otal acco-nted or

*3,000 2,000 5!,000

Proble$ 12-!

1

1.

2.

E6ui0alent 'nits o Pro)uction, utting 'epartment Be/innin/ WIP 9tarted in process +otal to acco-nt or

Units 1,300 *,00 .,100

Materials

on!ersion

+ranserred 8-t: From BWIP From 9IP ndin/ WIP UP

1,!00 3,00 1,100 .,100

!.0 3,00 **0 *,*00

3!5 3,00 !!0 *,!*5

oating 'epartment Be/innin/ WIP 9tarted in process +otal to acco-nt or

Units 200 5,000 5,200

+ranserred o-t: From BWIP From 9IP ndin/ WIP UP

200 3,.00 1,*00 5,200

on!ersion

200 3,.00 <0< *,500

3.0 3,.00 5.0 *,5!0

Material P35,!00  *,*00 P 

on!ersion P!5,*0  *,!*5 P 5

Cost per e6ui0alent unit, utting 'epartment ;-rrent costs $iided &' UP Unit costs

3.

Materials

Cost Cost tran trans ser erre re) ) out out an) an) E EP P in0e in0ent ntor or: : o Cutt Cuttin in* *
;ost o BWIP ;ost to complete BWIP: "aterial: (!.0 x P) ;onersion: (3!5 x P5) 9tarted and completed : (3,00 x P13) +otal costs transerred o-t ndin/ WIP: "aterials: (**0 x P) ;onersion costs: (!!0 x P5) +otal costs

 #roblem 157 (continued)

P1.,0.5 P !,00 1,.!5 *,100

P3,5!0 1,100

51,05 P.,0

*,.!0 P!,*20

12

4.

oat oatin ing g 'epa 'epart rtme ment nt ;-rrent costs $iided &' UP Unit cost

,rans ransfe ferr rred ed 6n P.,0  5,000 P1345*

Mate Materi rial al P*,250 *,500 P 1410

on! on!er ersi sion on P11,300  *,5!0 P !450

Cost Assi*n$ent,

+ranserred o-t: From BWIP: ;ost last mont# ;ost added t#is mont#: "aterial: (200 x P1410) ;onersion: (3.0 x P!450) From 9IP: (3,.00 x P141) +otal cost transerred o-t ndin/ WIP: +ranserred in: in: (1,*00 x P1345*) ;onersion cost: (5.0 x P!450) +otal costs acco-nted or

5.

P13,51* 220 200

P12,00* 1,*00

P15,*0* .1,1! P,!1.

!0,*0* P2,.!0

9ince t#ere as no &e/innin/ or endin/ F= inentor', cost o /oods sold i s e@-al to cost o /oods man-act-red (transerred o-t to F=) or t#e period4 +#-s ;8=9 C P,!1.

Proble$ 12-

!0 1.

2.

E6ui E6 ui0a 0ale lent nt 'nit 'nitss o o Pro Pro)u )uct ctio ion n # Mol) Mol)in in* *
<0< 3,*00

 abor: +ranserred o-t: From BWIP: (00 x *5%) From 9IP ndin/ WIP: (500 x .0%) UP

315 3,*00

4!er&ead: +ranserred o-t: From BWIP: (00 x 30%) From 9IP: ndin/ WIP: (500 x 5%) UP

!10 3,*00

3,*00 500 3,200

3,15 300 *,015

3,.10 35 3,25

E6ui E6 ui0a 0ale lent nt 'nit 'nitss o o Pro Pro)u )uct ctio ion n # >ini >inish shin in* *
!10 3,!0

 abor: +ranserred 8-t: From BWIP: (*!0 x .0%) From 9IP ndin/ WIP: (30 x !5%) UP

!5! 3,!0

4!er&ead: +ranserred 8-t: From BWIP: (*!0 x .0%) From 9IP ndin/ WIP: (30 x !5%) UP

!5! 3,!0

 #roblem 15/ (continued)

3,230 25 *,0!5

3,2! 25 *,0.

3,2! 25 *,0.

!1 2.

Mol)in*
+ranserred o-t: From BWIP From 9IP ndin/ WIP +otal acco-nted or

Units 00 3,200 *,.00

00 3,*00

ost 2c&edule Be/innin/ WIP ;osts added in c-rrent mont#: "aterials a&or 8er#ead +otal cost to acco-nt or

4.

*,100 500 *,.00 ,otal osts P11,214!0

3.,..0400 !*,020400 !.,!!1430 P2,2450

EU#

Unit osts

  

3,200 *,015 3,25

C C C

P 24*0 .400 .45 P!142

Transferred Transferred out: From BWIP: ;ost in BWIP ;ost added in c-rrent mont#: a&or 8er#ead +otal BWIP From 9IP +otal cost transerred o-t

1,20400 1,3140 15,120400 *,3!400 P2,2!!400

C C

315 !10

x x

P .400 .45

C

3, 3,*00

x

!142

 Ending 1/P  "aterials a&or 8er#ead +otal ndin/ WIP +otal acco-nted or

*,00400 1,00400 !,*.450 ,2.450 P2,2450

C C C

500 300 3 35

x x x

24*0 .400 .45

>inishin*
P11,214!0

!! Cost o Pro)uction Report Month o ?une 2(1( 0uantit 2c&edule Be/innin/ WIP +ranserred In rom prior department +otal to acco-nt or

+ranserred 8-t: From BWIP From +I ndin/ WIP +otal acco-nted or ost 2c&edule Be/innin/ WIP +ranserred In costs t#is mont# ;ost added t#is mont#: "aterial a&or 8er#ead +otal to acco-nt or

Transferred Transferred Out: From BWIP: ;ost o BWIP ;ost added in c-rrent mont#: "aterial a&or 8er#ead +otal cost o BWIP From +ranserred In +otal costs transerred to F=  Ending 1/P: +ranserred In ;ost added: "aterial a&or 8er#ead +otal cost o WIP +otal acco-nted or #* difference due to rounding off 

 #roblem 15/ (continued)

Units *!0 *,100 *,5!0

*!0 3,!0

,otal osts P 10,!3!40* 2,2!!400

*,0!5400 1.,1.4.. ,050400 P1!,*1540

*,1*0 30 *,5!0 EU#

Unit osts



*,100

C P!1423!!0

  

*,0!5 *,0. *,0.

C C C

1400 342 142235 P!42155

P 10,!3!40* !10400 1,00!42. *240 11,2*340 10,*.45 P112,*!043!

P

C C C C

!10 x P 1400 !5! x 342 !5! x 142235 3,!0 x

!42155

,33*4!*

C

30

x

!1423!!0

25400 3410 140* ,22543 P 1!,*1540

C C C

25 25 25

x x x

1400 342 142235

!3

54

"ork in process $ %inis&ing 'epartment "ork in process $ Molding 'epartment ,o record cost of units transferred out from  Molding 'epartment to %inis&ing 'epartment.

/88.

%inis&ed 9oods 6n!entor "ork in process $ %inis&ing 'epartment ,o record cost of finis&ed goods.

118+.

/88.

118+.