1
CHAPTER 13 Answers to Multiple Choices – Theoretical 1. 2. 3. ". $.
b a c b a
6. 7. !. #. 1%.
b b a c
&olutions to Multiple Choices – Co'putational 1.
()
Transferred Out to next department (100%) Normal lost units (100%) Ending work in process (100%) E*P – Materials 2.
(a)
Transferred Out! "rom #$&! ( (0,000 x '0%) "rom &! (5 ( 55,000 * 0,000) 100% Normal lost units (100%) Ending work in process! ( (5,000 x 50%) E*P – Con,ersion cost 3.
+,000 15,000 1+,500 6#+$%%
,000 +,000
,000 1,500 ,'00 12+#%%
(a)
Transferred Out Normal lost units Ending work in process E*P – Con,ersion costs $.
1,000 5,000
(b)
Transferred Out! "rom #$&! (5 (5,000 x '0%) "rom T! (1,000 * 5,000) Normal lost units (,000 x +5%) Ending work in process! (-,000 x '0%) E*P – Con,ersion costs ".
55,000 15,000 5,000 1%$+%%%
1,000 1,500 ,'00 1$+#%%
(c )
Transferred n cost! (-0 x &1.50) /ost added tis department! aterials! (-0 x &2) /on3ersion costs! (+ x &1.+5) Cost o- lost units
& ',-0.00 ,2-.5 +,+50.00 P16+$"6.2$
6.
7.
(c )
/ost of normal lost units! (&,250 x 20041,00)
&1,00
Allo Alloca cate te to En Eni in n /or0 or0 in Pro Process cess (P21 (P21+# +#%% %% "+!% "+!%% %16 16+! +!%% %%))
P6+2 P6+2$7 $7.1 .1" "
(c )
EUP Transferred Out Ending work in process Normal spoiled units E&
!.
Actual Units +,000 ,000 1,000
&.00 5.00 &2.00
Cost o- units trans-erre out (7 (7+%%% P!)
P$6+%%%
(c )
,000 ,000 ,000 ""+%%%
(a)
/ompleted and transferred out Ending work in process! (2,000 x 100%) E*P – Materials 11.
25,000 '5,000 10,000 1"%+%%%
(b)
Transferred Out to finised goods (100%) Ending work in process! (15,000 x -0%) 67normal lost units! (,000 x 100%) E*P – Con,ersion costs 1%.
Conversion +,000 1,000 1,000 ,000
Unit costs: aterials! (&0,000 4 10,000) /on3ersion costs! (&'5,000 4 ,000) Total unit costs
Transferred Out to next department (100%) Ending work in process (100%) Normal lost units (10,000 x 100%) E*P – Materials #.
Materials +,000 ,000 1,000 10,000
+,000 2,000 !%+%%%
(b)
aterials in #$& aterials added during mont Total 8i3ided 79 E& *nit 'aterial cost
& -2,000 100,000 &1-2,000 : 20,000 P 2.1%
12.
(a)
Transferred Out to next department Ending work in process (00 x '0%) ;ost units! (-00 x 100%) E*P – 4abor 13.
,-00 20 -00 1%+2!%
(a)
;a7or cost in #$& ;a7or cost incurred during te mont Total la7or costs 8i3ided 79 E& *nit labor cost 1".
(a)
Transferred Out to next department! "rom #$&! ('00 x 50%) "rom &! (,-00 * '00) Ending work in process! (00 x '0%) ;ost units E*P – 4abor 1$.
,000 15,000 12,000 (1+,50) ( '50) 3%%
,000 15,000 12,000
(a)
T costs last mont in #$& T costs * current mont Total 8i3ided 79 E& *nit T5 costs 1!.
,'00 20 -00 1%+%!%
(a)
#eginning $& Transferred n E&
00 ,00
(a)
#eginning $& Transferred n nits to account for Transferred Out Ending $& 4ost units 16.
& 15,000 -5,-0 &20,-0 : 10,20 P 37
& 0,000 '50,000 5'0,000 : 12,000 P 3%
(a)
#eginning $& Transferred n tis mont ;ost units E*P – T5 costs
100 ',200 ( 5) "+!%$
' 1#.
(a)
T costs last mont in #$& T costs< current mont Total 8i3ided 79 E& *nit trans-erre in costs 2%.
& 1,50 1',200 &1'',150 : ',205 P 3%
(a)
05 units x &0 = P6+1$% 21.
22.
(b)
E>ui3alent nits of &roduction * aterials! /ompleted and transferred out Ending $& (100%) 67normal lost units (100%) E& * aterials
10,000 ,+5 5 1,000
*nit 'aterial costs (P6%+%%% P3%"+%%%) 13+%%%
P
2!
(a)
5 units x &2 = P7%% 23.
(a)
#eginning $& Transferred n nits added E*P
500 11,000 5,000 16+$%%
Or! Transferred Out (100%) Ending $& (100%) E*P – T5 costs 2".
(b)
Transferred n costs * #$& Transferred n costs * /urrent mont Total T costs 8i3ided 79 E& *nit T5 costs 2$.
15,500 1,000 16+$%%
(c)
1,000 units x &1 =
P12+%%%
& ,000 1-5,000 &12,000 : 1-,500 P 12
5 26.
(c)
Transferred Out to next department! "rom #$&! (500 x 0%) "rom T! (,00 * 500) Ending $&! (50 x 100%) Normal lost units! (50 x 100%) E*P – Materials 27.
<0< 1,+00
(c)
aterials added during te mont 8i3ided 79 E& *nit 'aterial cost 2!.
1,+00 50 50 2+%%%
&15,000 : ,000 P 76.
%$(a)
50 units x &+-.50 = P1#+12$ 2#.
(a)
Equivalent Units of Production /ompleted and transferred out Ending $& Normal lost units 67normal lost units E&
Units ,000 ,000 100 50
Unit Costs: aterials! (&1',0 ? &11,120) : 11,150 /on3ersion costs! (&11,100 ? &++,500) : ,+50 Total unit cost 3%.
Materials ,000 ,000 100 50 11,150
Conversion ,000 -00 100 50 ,+50
P12.1""" .-0 &'1.+'''
()
,000 units x &'1.+''' = P37$+7%% 31.
(c)
aterials! (,000 x &1.1''') /on3ersion costs! (-00 x &.-0) /osts of E$& 32.
(a)
50 units x &'1.+''' = P2+%!7
&',2 1+,+-0 P"2+%"#
33.
(a) E8ui,alent *nits o- Prouction Materials: /ompleted and transferred out! "rom #$&! (1,000 x 0%) "rom &! (,000 < 1,000) Ending $&! (,000 x 100%) Normal lost units! (100 x 100%) 67normal lost units! (50 x 100) E*P
Conversion Costs: /ompleted and transferred out! "rom #$&! (1,000 x 50%) "rom & Ending $&! (,000 x 0%) Normal lost units 67normal lost units E*P 3".
<0< 2,000
500 2,000
& 1',0 15,000 ,0 5,50 ',1' P36!+#""
(a)
aterials! (,000 x &11.') /on3ersion costs! (-00 x &0) Costs o- E/5P 37.
P11.#" 3%.%% &'1.'
(b)
/ompleted #$&! /ost last mont /ost added tis mont! /on3ersion costs! (500 x &0) Total costs of completed #$& /ompleted &! (2,000 x &'1.') /ost of normal lost units! (100 x &'1.') Total costs o- units co'plete an trans-erre out 36.
2,500 -00 100 50 #+2
%$(a) Materials (P121+1!% 1%+1$%) Con,ersion costs (P277+$%% #+2$%) Total unit cost
3$.
2,000 ,000 100 50 1%+1
%$(a)
50 units x &'1.' =
P2+%#7
&,220 12,000 P"1+!!%
+ 3!.
(a)
Materials: Transferred Out! "rom #$&! (+,500 x &0%) "rom &! (+,500 * +,500) 100% Ending $&! (1,000 x 100%) Normal lost units! (1,100 x 100%) 67normal lost units! (00 x 100%) E*P – Materials Conversion costs: Transferred Out! "rom #$&! (+,500 x -0%) "rom & Ending $&! (1,000 x +0%) Normal lost units! (1,100 x +5%) 67normal lost units! (00 x +5%) E*P – CC 3#.
<0< -5,000
',500 -5,000
-,500 ,100 25 -+5 !%+1%%
(b)
Unit costs: aterials! (&10,000 4 20,000) /on3ersion costs! (&0,'00 4 20,100) Total unit costs
"%.
-5,000 1,000 1,100 00 !%+%%%
&1.50 '.00 &5.50
6ssignment of /osts! /ompleted and transferred out! "rom #$&! /ost last mont /ost added tis mont * //! (',500 x &') Total costs of completed #$& "rom &! (-5,000 x &5.50) Total cost of units completed /ost of normal lost units! aterials! (1,100 x &1.50) &1,-50 /on3ersion costs! (25 x &') ,00 Total costs o- co'plete units a-ter a9ust'ent -or lost units
',50 P"%"+6
%$ Ending WIP aterials! (1,000 x &1.50) /on3ersion costs! (,100 x &') Total costs o- E/5P
&1,500 -,'00 P$$+#%%
& ',00 12,000 ',00 5+,500 ,+00
(a)
aterials! (00 x &150) /on3ersion costs! (-+5 x &') Cost o- abnor'al lost units
& 1,50 ,+00 P "+%
%$ 2 "1.
(a)
Equivalent Units of production Transferred Out Ending $& Normal lost units 67normal lost units E*P "2.
Units +,500 1,000 1,100 00
Materials +,500 1,000 1,100 00 !7+$%%
(c)
Unit costs: aterials! (&10,'00 ? &10,000) = &10,0004 2+,500 /on3ersion costs! (&1,200 = &0,'00) = &',00 4 2,100 Total unit costs Assignment of Costs: Transferred Out! (+,500 x &5.5115) /ost of normal lost units! aterials! (1,100 x &1.'0) /on3ersion costs! (25 x &'.01--) Total costs o- units trans-erre out
&1,- ,12
(b)
& 1,'1 ,+15 P "+%$6
(a)
Equivalent Units of Production /ompleted Ending $& Normal spoilage (+0,000 x 10%) 67normal spoilage E*P "$.
',5+ P"%"+$73
&1,+' -,5+ P$$+#71
aterials! (00 x &1.'0) /on3ersion costs! (-+5 x &'.01--) Cost o- abnor'al lost units
"".
&1.'0 '.01-&5.5115
&,-1-
Ending WIP: aterials! (1,000 x &1.'0) /on3ersion costs! (,100 x &'.01--) Cost o- E/5P "3.
Conversion +,500 ,100 25 -+5 !3+1%%
Units 50,000 0,000 +,000 ,000
DM 50,000 0,000 0 0 7%+%%%
CC 50,000 1,000 5,-00 ,'00 77+%%%
(a)
Unit costs: Transferred n costs! (2,00 ? -'+,500) : 20,000 /ost added tis department! aterials! (&0 ? &-55,00) : +0,000 /on3ersion cost! (&',000 ? &1,51,-00) : ++,000 Total unit costs
& .1 .1-.20 &5.
Number 45 (continued)
Cost of normal lost units: Transferred n costs! (+,000 x &.1) /ost added tis department! /on3ersion costs! (5,-00 x &1-.20) Cost o- nor'al lost units "6.
& -,10 ',020 P1$7+##%
()
Completed and transferred out: /ompleted and transferred out! (50,000 x &5.) /ost of normal lost units! (&15+,0 x 504+0) A9uste cost o- units co'plete an trans-erre out "7.
(a)
Ending work in process! Transferred n costs! (0,000 x &.1) /ost added! aterials! (0,000 x &.-) /on3ersion costs! (1,000 x &1-.20) /ost of normal lost units! (&15+,0 x 04+0) Cost o- E/5P "!.
&1,+-',500 11,250 P1+!77+3
%$&12,-00 &12+,00 1,00
50-,'00 '5,1'0 P73"+1"%
(a)
Transferred n costs! (,000 x &.1) /ost added! /on3ersion costs! (,'00 x &1-.20) Cost o- abnor'al lost units
&+,0 '0,0 P67+71%
10 &olutions to Proble's
Proble' 13:1
1.
Asse'bl;
','0 210 50 -,100
Labor: Transferred Out to next department Ending work in process! (210 x -0%) ;ost units E&
','0 '250 5,++-
Overhead: Transferred Out to next department Ending work in process! (210 x 20%) ;ost units E&
','0 -'2 50 5,2
11 2.
Asse'bl;
Units 00 5,00 -,100
Transferred Out to next department Ending $& ;ost units Total accounted for
','0 210 50 -,100
Cost Schedule aterials! #eginning $& /urrent mont Total materials ;a7or! #eginning $& /urrent mont Total la7or O3eread! #eginning $& /urrent mont Total o3eread Total costs to account for
/osts accounted for! Transferred Out to next department! /ompleted /ost of lost units /osts of units transferred out Ending $&! aterials ;a7or O3eread Total E$& Total costs accounted for
otal Costs & +,'2 2'+,00 22',500 2,-2 1+,-+121,'' ,+-' '10,+10 ','+' &1,',12
!U" = 00 = 5,00 : -,100
Unit Costs
=
&1'5.00
:
5,++-
=
1.50
:
5,2
=
+.00 &'.50
&1,,50 2+,5 1,1,255
= =
','0 50
x x
&'.50 '.50
11+,'50 15,0 '+,0' 120,0- &1,',12
= = =
210 '2-'2
x x x
1'5.00 1.50 +.00
1 Proble' 13:2
1.
Miin
500 1',00 1',200
Materials: Transferred Out to finised goods Ending work in process! (00 x 100%) Normal lost units! (00 x 100%) E&
1,-00 00 00 1',200
Conversion costs: Transferred Out to finised goods Ending work in process! (00 x +5%) Normal lost units! (00 x 100%) E&
1,-00 -+5 00 1',5+5
1
"roblem %&' (continued)
2.
Miin
Units 500 1',00 1',200
Transferred Out to finised goods Ending work in process Normal lost units Total accounted for
1,-00 00 00 1',200
Cost Schedule Transferred n costs! #eginning $& /urrent mont Total Transferred n costs /ost in tis department! aterials! #$& /urrent mont Total materials //! #$& /urrent mont Total // Total costs tis department Total costs to account for
/osts 6ccounted "or! Transferred Out to finised goods! /ompleted Normal lost units Total costs Ending work in process! Transferred n costs /ost tis department! aterials /on3ersion costs Total E$& Total costs accounted for
otal Costs
&
',5'0 +5,'0' +5,''
+,-0 '20,20 512,000 +2,50 1,50,000 1,'2,50 1,'-,50 &,+','
!U"
Unit Costs
= = :
500 1',00 1',200
=
& 5.+2
:
1',200
=
5.00
:
1',5+5
=
2.00 &12-.+2
&,5'0,02 5-,0' ,5-,'
= =
1,-00 00
x x
&12-.+2 12-.+2
'2,'0
=
00
x
5.+2
1,500 --,150 1'-,05 &,+','
= =
00 -+5
x x
5.00 2.00
1'
Proble' 13:3
1.
>inishin
500 5,00 5,200
Materials: Transferred Out to finised goods Ending work in process! ('50 x 20%) Normal lost units! (150 x 100%) E&
5,00 -0 150 5,+10
Conversion costs: Transferred Out to finised goods Ending work in process! ('50 x 14%) Normal lost units! (150 x 100%) E&
5,00 150 150 5,500
15
"roblem %&'& (continued)
2.
>inishin
Units 500 5,00 5,200
6ccounted for as follows! Transferred Out to next department Ending work in process Normal lost units Total accounted for
5,00 '50 150 5,200
Cost Schedule Transferred n costs! #eginning $& /urrent mont Total T costs /ost tis department! aterials! #eginning $& /urrent mont Total materials //! #eginning $& /urrent mont Total // Total cost in tis department Total costs to account for
/osts accounted for! Transferred Out to next department! /ompleted /ost of normal lost units Total costs of TO Ending work in process! Transferred in costs /ost in tis department! aterials /on3ersion costs Total E$& Total accounted for
otal Costs
& ',00 0,000 -,00 1,00 11,25 1',125 -,+0 151,-20 152,'00 &,525 &512,+25
!U"
Unit Costs
:
5,200
=
&.00
:
5,+10
=
.50
:
5,500
=
2.20 &1.0
&'+',+-0 1,-5 '22,'55
= =
5,00 150
x x
&1.0 1.0
1+,550
=
'50
x
.00
2,'-0 ',0 0,0 &512,+25
= =
-0 150
x x
.50 2.20
1Proble' 13:" 1.
>inishin
1,000 -,200 ( 00) +,-00
Materials: Transferred Out to finised goods Ending work in process! (,000 x 100%) 67normal lost units! (100 x 100%) E&
',500 ,000 100 +,-00
Conversion Costs: Transferred Out to finised goods Ending work in process! (,000 x -0%) 67normal lost units! (100 x 100%) E&
',500 1,200 100 -,'00
1+ "roblem %&'4 (continued) 2.
>inishin
Units 1,000 -,200 +,200
Transferred Out to finised goods Ending work in process Normal lost units 67normal lost units Total accounted for
',500 ,000 00 100 +,200
Cost Schedule Transferred n costs! #eginning $& /urrent mont Total T costs /osts added in tis department! aterials! #$& /urrent mont Total materials //! #$& /urrent mont Total // Total costs tis department Total costs to account for
/osts accounted for as follows! Transferred Out to finised goods Ending work in process! Transferred n costs /ost added tis department! aterials /on3ersion costs Total E$& 67normal lost units! Transferred n costs /ost added tis department! aterials /on3ersion costs Total a7normal lost units Total costs accounted for
&
otal Costs
&
1,000 --2,5-0 -20,5-0
2,'00 512,000 5-,'00 1,-20 '0,000 5,-20 1,'20,020 &,1-0,-'0
!U"
Unit Costs
:
+,-00 =
&12.10
:
+,-00 =
1'.00
:
-,'00 =
-.0 &52.0
&,011,50
=
',500 x
&52.0
5',00
=
,000 x
12.10
',000 '+,1-0 1','-0
= =
,000 x 1,200 x
1'.00 -.0
1,210
=
100 x
12.10
1,'00 ,-0 5,20 &,1-0,-'0
= =
100 x 100 x
1'.00 -.0
*inished +oods Loss #rom abnormal s.oila+e 0or1 in .rocess o record costs trans#erred to #inished +oods and abnormal s.oila+e
,-%%,&55,/&,-%2,%/-
12 Proble' 13:$ 1.
Miin
,00 100 ,000
Materials and Overhead: Transferred Out to next department Ending work in process! (100 x 20%) E&
,00 20 ,20
Labor: Transferred Out to next department Ending work in process! (100 x +0%) E&
,00 +0 ,+0
1
"roblem %&'5 (continued)
2.
Miin
Units 150 ,550 00 ,000
Accounted for as follows: Transferred Out to next department Ending work in process Total accounted for
,00 100 ,000
Cost Schedule otal Costs Transferred n /osts! #eginning $& & 10,200 /urrent ont 1',00 Total T costs 5,000 /ost added in tis department! aterials! #$& ,1' /urrent mont 20,000 Total materials 2,1' ;a7or! #$& ,01 /urrent mont --,000 Total la7or -2,01 O3eread! #$& 1,21 /urrent mont 5-,000 Total o3eread 5+,21 Total costs in tis department &02,-+ Total costs to account for &',-+
/osts accounted for as follows! Transferred Out to next department &'1,020 Ending work in process! Transferred n costs +,500 /ost added in tis department! aterials , ;a7or 1,-0 O3eread 1,55 Total E$& 1,22+ Total accounted for &',-+
!U"
Unit Costs
:
,000
=
& +5.00
:
,20
=
+.0
:
,+0
=
.0
:
,20
=
1.'0 &1'5.0
=
,00
x
&1'5.0
=
100
x
+5.00
= = =
20 +0 20
x x x
+.0 .0 1.'0
0
Proble' 13:6
1.
Asse'bl;
0,000 ( 20) ,-0
Materials: Transferred Out to te next department! "rom #$&! (,000 x 0%) "rom &! (0,+0 * ,000) Ending work in process! (1,50 x 100%) E&
0 2,+0
Conversion Costs: Transferred Out to te next department! "rom #$&! (,000 x '0%) "rom & Ending work in process! (1,50 x 20%) E&
200 2,+0
2,+0 1,50 ,-0
,0+0 1,020 0,150
1
"roblem %&'3 (continued) 2.
Asse'bl;
Accounted for: Transferred Out to next department! "rom #$& "rom & Ending work in process ;ost units in production Total accounted for Cost Schedule #eginning $& /osts in current mont! Transferred in costs /osts added in tis department! aterials /on3ersion costs Total costs added Total costs in current mont Total costs to account for
Costs accounted for as follows: Transferred Out to next department! "rom #$&! /ost last mont /ost added tis mont! aterials /on3ersion costs Total from #$& "rom & Total costs of units TO Ending work in process! Transferred in costs /ost added in tis department! aterials /on3ersion costs Total E$& Total costs accounted for
Units ,000 0,000 ,000
,000 2,+0
0,+0 1,50 20 ,000
otal Costs & 1,-2
!U"
Unit Costs
1,5,2+5
:
,-0 =
&'.+5
-,5 1,0-,01,5,2 ,5'2,++' &,-22,1'
: :
,-0 = 0,150 =
+.-5 '.0' '1.- &25.''
=
200
x
&'.0'
=
2,+0 x
25.''
& 1,-2 0 +, 1--,-00 ,'15,2 ,521,2 5,0-
=
1,50 x
'.+5
10,+ -,+- 10-,15 &,-22,1'
= =
1,50 x 1,020 x
+.-5 '.0'
Proble' 13:7
1.
Total E8ui,alent *nits o- Prouction
/ost added in arc 8i3ided 79 cost per e>ui3alent unit E>ui3alent units of work done in arc
2.
3.
irect Materials &1,'20,000 : &0 +',000
E8ui,alent *nits o- Prouction o- Actual *nits irect Materials Total e>ui3alent units of production (no. 1) +',000 ;ess! te following /ompleted from #$& 0 /ompleted from &! (-1,000 < 10,000) 51,000 Normal spoilage! (-1,000 x 11%) -,+10 67normal spoilage! (2,000 * -,+10) 1,0 Total 5,000 E& of ending work in process 15,000 8i3ided 79 actual units of E$& : 15,000 Percentae o- co'pletion o- E/5P
1%%?
Conversion Costs &',000 : &1 +2,500
Conversion Costs +2,500
+,500 (+5%) 51,000 -,+10 1,0 --,500 1,000 : 15,000 !%?
"roblem %&'2 (continued) ".
Coo0in or the Month o- March 2%1% Quantity Schedule #eginning $& tarted in &rocess Total to account for
/ompleted and transferred out! "rom #$& "rom & Ending $& Normal spoilage 67normal spoilage Total accounted for Cost Schedule #eginning $& /osts added in current mont! 8irect materials /on3ersion costs Total costs to account for
Costs accounted for as follows: /ompleted and transferred Out! "rom #$&! /ost last mont /ost added tis mont! 8irect materials /on3ersion costs Total #$& "rom & Normal spoilage Total cost of units transferred out Ending work in process! 8irect materials /on3ersion costs Total E$& Total costs accounted for
Units 10,000 +',000 2',000
10,000 51,000
-1,000 15,000 -,+10 1,0 2',000
otal Costs & 50,000
1,'20,000 ',000 &,-+,000
!U"
: :
Unit Costs
+',000 = +2,500 =
&0 1 &
& 50,000 0 0,000 '0,000 1,-,000 1',+0 ,12-,+0
00,000 1'',000 ''',000 &,-+,000
=
+,500
x
&1
= =
51,000 x -,+10 x
= =
15,000 x 1,000 x
0 1
' Proble' 13:!
Quantity Schedule Aecei3ed from 8epartment 6
Transferred Out to finised goods Ending work in process Normal spoilage (,000 x 5%) 67normal spoilage Total accounted for Cost Schedule Transferred n costs /ost added tis department! aterials /on3ersion costs Total costs to account for
/ost accounted for as follows! Transferred Out to finised goods! /ompleted Normal spoilage! Transferred n costs /osts added tis dept.! aterials /on3ersion costs Total costs Total costs Transferred Out Ending work in process! Transferred n costs /ost added! aterials /on3ersion costs Total E$& 67normal spoilage! Transferred n costs /ost added! aterials /on3ersion costs Total a7normal spoilage Total accounted for
ctual Units 1,000
!6uivalent Units Materials Conversion
,000 ,000 '50 550 1,000
,000 0 0 0 ,000
otal Costs & 2',000
:
!U" 1,000
=
12,000 '5,00 &1'+,00
: :
,000 11,00
= =
.00 '.00 &1.00
&11+,000
=
.000
x
&1.00
,150
=
'50
x
+.00
=
'05
x
'.00
1',000
=
,000
x
+.00
0 5,-00 1.-00
=
1,'00
x
'.00
,250
=
550
x
+.00
=
'5
x
'.00
0 1,-0 ',++0 11,++0
0 1,20 5,20 &1'+,00
.000 1,'00 '05 '5 11,00 Unit Costs & +.00
5 Proble' 13:# Asse'bl;
ctual Units 10,000
Transferred Out to "B Ending work in process Normal spoilage (+,000 x 5%) 67normal spoilage Total accounted for
+,000 ,000 50 -50 10,000
Costs Schedule aterial 6 aterial # /on3ersion costs Total costs to account for
Costs accounted for as follows: Transferred Out to "B! /ompleted Normal spoilage! aterial 6 aterial # /on3ersion costs /osts of normal spoilage Total costs transferred out Ending work in process! aterial 6 aterial # /on3ersion costs Total E$& 67normal spoilage! aterial 6 aterial # /on3ersion costs Total a7normal spoilage Total accounted for
!6uivalent Units o# "roduction Material Material 7 Conversion
+,000 ,000 50 -50 10,000
otal costs & 1,500 ',500 2',20 &10,20
+,000 ,000 0 0 ,000
+,000 1,00 15 525 ,200
: : :
!U" 10,000 ,000 ,200
Unit Costs & 1.5 0.50 2.-0 &10.'5
= = =
& +,150
=
+,000
x
&10.'5
'+ 0 ,+0 ,12 +-,
=
50
x
1.5
=
15
x
2.-0
,+00 1,000 1-,'0 0,0'0
= = =
.000 ,000 1,00
x x x
1.5 .50 2.-0
2++ 0 5,01 5,02 &10,20
=
-50
x
1.5
=
525
x
2.-0
Proble' 13:1% a.
#eginning $& Transferred n nits to account for
,000 '5,000 '2,000
Transferred Out Ending $& #ikes lost nits accounted for
'0,000 ',000 ',000 '2,000
1.
here#ore: #ikes passing troug 6ssem7l9 '2,000 ;ess 7ikes in ending $& (a3e not reaced te inspection &oint so tere is no wa9 to determine accepta7ilit9) (',000) #ikes reacing te inspection point '',000 Normal defecti3e rate x 5% Normal num7er of spoilage ,00
2.
Total 7ikes lost Normal spoilage 67normal spoilage
b.
Transferred Out Ending $& Normal spoilage 67normal spoilage E& c.
#eginning $& /urrent costs Total cost 8i3ided 79 E& /ost per E& . 1. 2. 3. ".
e.
',000 (,00) 1,200 Units '0,000 ',000 ,00 1,200 '2,000 otal & 10,+0 1,5+-,0+0 &1,-+2,2-0
&
5.'5
rans $n '0,000 ',000 ,00 1,200 '2,000
Material '0,000 ,000 ,00 1,200 '-,000
rans $n & 2,00 1,+,200 &1,0,000 : '2,000 & +.50
Conversion '0,000 200 ,00 1,200 '',200
Material & -,--0 -,2'0 &10,500 : '-,000 & .5
Conversion & 1,0 '1,'0 &55,-0 : '',200 & 5.+0
Normal damaged units! (,00 x &5.'5) 67normal damaged units! (1,200 x &5.'5) Bood units completed! ('0,000 x &5.'5) Ending $&! Transferred n! (',000 x &+.50) /ost added! aterial! (,000 x &.5) /on3ersion! (200 x &5.+0) Total E$&
& ++,0 & -,210 &1,'12,000
/ost of good 7ikes /ost of Normal spoilage Total costs of transferred out to te &acking 8epartment
&1,'12,000 ++,0 &1,'5,0
63erage unit cost! (&1,'5,0 4 '0,000)
&
& 110,000 ',500 ',5-0 & 11,0-0
+.'0
+
Proble' 13:11 1.
E8ui,alent *nits o- Prouction Cleanin
0 -,'00
00 -,'00
,000 ,000
-00 ,000
-,'00 1,-00 +'0 -0 ,000
-,-00 '00 +'0 -0 2,000
-,000 0 00 100 -,'00
,-00 1,000 00 100 5,000
2
2.
Cleanin
/ompeted and transferred out! "rom #$& "rom & Ending $& (>ueeDe) Normal lost units 67normal lost units Total accounted for Cost Schedule #eginning $& /urrent mont! aterials /on3ersion costs Total costs to account for
/osts accounted for! /ompleted and transferred out! "rom #$&! /ost last mont (#$&) /ost added tis mont! aterials /on3ersion cost Total #$& "rom & Total costs of completed units Normal lost units Total costs of units transferred out Ending $&! aterials /on3ersion cost Total E$& 67normal lost units Total accounted for
Units 1,000 ,000 10,000
1,000 -,'00
+,'00 1,-00 +'0 -0 10,000
otal Costs & 12,000
0,000 20,000 &122,000
!U"
Unit Costs
: :
,000 2,000
= =
&10.00 10.00 &0.00
=
00
x
&10.00
=
-,'00
x
0.00
=
+'0
x
0.00
= =
1,-00 '00
x x
10.00 10.00
=
-0
x
0.00
& 12,000 0 ,000 0,000 12,000 1'2,000 1',200 1-,200 1-,000 ',000 0.000 5,00 &122,000
"roblem %&'%% (continued) Millin
/ompleted and transferred out! "rom #$& "rom T Ending $& (>ueeDe) Normal lost units 67normal lost units Total accounted for Cost Schedule #eginning $& Transferred n costs /ost added tis department! aterials /on3ersion costs Total costs to account for
/ost accounted for! /ompleted and transferred out! "rom #$&! /ost last mont /ost added tis department! aterials /on3ersion costs Total #$& "rom T Total costs of completed units Normal lost units Total costs of units transferred out Ending $&! Transferred in costs /ost added! aterials /on3ersion costs Total E$& 67normal lost units Total accounted for
Units ,000 +,'00 10,'00
,000 ,000
otal Costs & 2,000 1-,200
-,'00 ',500 &0+,+00
-,000 ',000 00 100 10,'00 !U"
otal Costs
:
+,'00
=
&.00
: :
-,'00 5,000
= =
1.00 .0 &.0
& 2,000 ,000 5,'0 +,'0 2,+00 1-,-'0 ,2+0 0-,510
= =
,000 -00
x x
& 1.00 .0
=
,000
x
.0
=
00
x
.0
22,000
=
',000
x
.00
=
1,000
x
.0
=
100
x
.0
0 ,00 +,00 ,0 &0+,+00
