BACOSTMX – LONG EXAMINATION 2

ACT222 & ACT223

SOLUTIONS:

(A) Determine the Units to be Accounted For using the following information:

Equivalent In Process - Stage of Units to be Accounted For

Production Ending Completion (=Units As Accounted For)
1 41,750 5,000 50% 44,250
2 55,250 31,250 92% 57,750
3 28,700 11,600 20% 37,980
4 17,580 4,000 47% 19,700
5 10,000 7,000 50% 13,500
6 11,225 5,800 10% 16,445
7 68,444 9,000 32% 74,564
7,200 50%
8 9,900 13,700
800 75%
12,400 42%
9 17,846 25,678
1,600 60%
8,900 88%
10 15,680 17,708
1,200 20%

Equivalent
No. 1 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 44,250

Completed Units 39,250 100% 39,250

In Process Ending 5,000 50% 2,500
Units As Accounted For 44,250 41,750

Equivalent
No. 2 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 57,750

Completed Units 26,500 100% 26,500

In Process Ending 31,250 92% 28,750
Units As Accounted For 57,750 55,250

Equivalent
No. 3 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 37,980

Completed Units 26,380 100% 26,380

In Process Ending 11,600 20% 2,320
Units As Accounted For 37,980 28,700

Equivalent
No. 4 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 19,700

Completed Units 15,700 100% 15,700

In Process Ending 4,000 47% 1,880
Units As Accounted For 19,700 17,580
 Equivalent
No. 5 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 13,500

Completed Units 6,500 100% 6,500

In Process Ending 7,000 50% 3,500
Units As Accounted For 13,500 10,000

Equivalent
No. 6 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 16,445

Completed Units 10,645 100% 10,645

In Process Ending 5,800 10% 580
Units As Accounted For 16,445 11,225

Equivalent
No. 7 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 74,564

Completed Units 65,564 100% 65,564

In Process Ending 9,000 32% 2,880
Units As Accounted For 74,564 68,444

Equivalent
No. 8 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 13,700

Completed Units 5,700 100% 5,700

In Process Ending 7,200 50% 3,600
In Process Ending 800 75% 600
Units As Accounted For 13,700 9,900

Equivalent
No. 9 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 25,678

Completed Units 11,678 100% 11,678

In Process Ending 12,400 42% 5,208
In Process Ending 1,600 60% 960
Units As Accounted For 25,678 17,846

Equivalent
No. 10 Actual Units Work Done
Production
Beginning Units
Started / Transferred In
Units to be Accounted For 17,708

Completed Units 7,608 100% 7,608

In Process Ending 8,900 88% 7,832
In Process Ending 1,200 20% 240
Units As Accounted For 17,708 15,680
(C) Determine the Actual Units of In-Process Ending Inventory in Department 2 using the
following information:

Equivalent Transferrred Transferred Stage of In Process -

Production Out In Completion Ending
1 33,400 30,370 36,430 50% 6,060
2 22,960 22,070 26,520 20% 4,450
3 44,200 36,334 44,884 92% 8,550
4 14,064 10,948 18,738 40% 7,790
5 8,000 6,946 9,054 50% 2,108
6 9,942 8,965 18,735 10% 9,770
7 54,700 53,176 58,256 30% 5,080
8 17,673 13,041 20,761 60% 7,720
9 22,854 20,799 27,649 30% 6,850
10 21,470 20,545 23,045 37% 2,500

1 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 36,430
Units to be Accounted For 36,430

Completed Units 30,370 100% 30,370

In Process Ending 6,060 50% 3,030
Units As Accounted For 36,430 33,400

2 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 26,520
Units to be Accounted For 26,520

Completed Units 22,070 100% 22,070

In Process Ending 4,450 20% 890
Units As Accounted For 26,520 22,960

3 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 44,884
Units to be Accounted For 44,884

Completed Units 36,334 100% 36,334

In Process Ending 8,550 92% 7,866
Units As Accounted For 44,884 44,200

4 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 18,738
Units to be Accounted For 18,738

Completed Units 10,948 100% 10,948

In Process Ending 7,790 40% 3,116
Units As Accounted For 18,738 14,064
5 Actual Units Work Done Equivalent
Production
Beginning Units
Started / Transferred In 9,054
Units to be Accounted For 9,054

Completed Units 6,946 100% 6,946

In Process Ending 2,108 50% 1,054
Units As Accounted For 9,054 8,000

6 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 18,735
Units to be Accounted For 18,735

Completed Units 8,965 100% 8,965

In Process Ending 9,770 10% 977
Units As Accounted For 18,735 9,942

7 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 58,256
Units to be Accounted For 58,256

Completed Units 53,176 100% 53,176

In Process Ending 5,080 30% 1,524
Units As Accounted For 58,256 54,700

8 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 20,761
Units to be Accounted For 20,761

Completed Units 13,041 100% 13,041

In Process Ending 7,720 60% 4,632
Units As Accounted For 20,761 17,673

9 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 27,649
Units to be Accounted For 27,649

Completed Units 20,799 100% 20,799

In Process Ending 6,850 30% 2,055
Units As Accounted For 27,649 22,854

10 Actual Units Work Done Equivalent

Production
Beginning Units
Started / Transferred In 23,045
Units to be Accounted For 23,045

Completed Units 20,545 100% 20,545

In Process Ending 2,500 37% 925
Units As Accounted For 23,045 21,470
SHANGRI-LA PROBLEM:

6,000 LOST 6,000 LOST

SHANGRI-LAB PROBLEM NO LOST UNITS
UNITS @BEG. UNITS @END
EUP for Materials 45,300 39,300 45,300
EUP for Conversion Cost 45,160 39,160 45,160
Equivalent Unit Cost 15.1829 17.4523 15.1829
Cost of Completed Units 546,583.86 523,569.98 546,583.86
Cost of In-Process-End 154,616.14 177,630.02 154,616.14

MULTILAB PROBLEM:

4,000 LOST 4,000 LOST

MULTILAB PROBLEM NO LOST UNITS
UNITS @BEG. UNITS @END
EUP for Materials 31,500 27,500 31,500
EUP for Conversion Cost 33,080 29,080 33,080
Equivalent Unit Cost 34.5790 39.1111 34.5790
Cost of Completed Units 795,318.04 743,111.38 795,318.04
Cost of In-Process-End 404,881.96 457,088.62 404,881.96
SHANGRI-LAB PROBLEM:
COST OF PRODUCTION REPORT
SCENARIO A - NO LOST UNITS

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 48,000
Units to be Accounted For 48,000
Units Completed & Transferred Out 36,000 100% 36,000 100% 36,000
Units in process - end 5,000 60% 3,000 60% 3,000
7,000 90% 6,300 88% 6,160
Units Lost during the period - - -
Units as Accounted For 48,000 45,300 45,160

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 253,000.00 48,000 5.2708

Costs added in the department:

Materials 185,000.00 45,300 4.0839
Conversion Costs 263,200.00 45,160 5.8282
Total 448,200.00 9.9121
Total Costs to be Accounted For 701,200.00 15.1829

Costs Accounted For:

Completed & Transferred 36,000 15.1829 546,583.86

In Process - End
Cost from Preceding Department 12,000 5.2708 63,250.00
Materials 9,300 4.0839 37,980.13
Conversion Costs 9,160 5.8282 53,386.01 154,616.14
Total Costs As Accounted For 701,200.00

COST OF PRODUCTION REPORT

SCENARIO B - 6000 LOST UNITS DISCOVERED AT THE BEGINNING

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 48,000
Units to be Accounted For 48,000
Units Completed & Transferred Out 30,000 100% 30,000 100% 30,000
Units in process - end 5,000 60% 3,000 60% 3,000
7,000 90% 6,300 88% 6,160
Units Lost during the period 6,000 0% - 0% -
Units as Accounted For 48,000 39,300 39,160

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 253,000.00 42,000 6.0238

Costs added in the department:

Materials 185,000.00 39,300 4.7074
Conversion Costs 263,200.00 39,160 6.7211
Total 448,200.00 11.4285
Total Costs to be Accounted For 701,200.00 17.4523

Costs Accounted For:

Completed & Transferred 30,000 17.4523 523,569.98

In Process - End
Cost from Preceding Department 12,000 6.0238 72,285.71
Materials 9,300 4.7074 43,778.63
Overhead 9,160 6.7211 61,565.68 177,630.02
Total Costs As Accounted For 701,200.00

COST OF PRODUCTION REPORT

SCENARIO C - 6000 LOST UNITS DISCOVERED AT THE END

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 48,000
Units to be Accounted For 48,000
Units Completed & Transferred Out 30,000 100% 30,000 100% 30,000
Units in process - end 5,000 60% 3,000 60% 3,000
7,000 90% 6,300 88% 6,160
Units Lost during the period 6,000 100% 6,000 100% 6,000
Units as Accounted For 48,000 45,300 45,160

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 253,000.00 48,000 5.2708

Costs added in the department:

Materials 185,000.00 45,300 4.0839
Conversion Costs 263,200.00 45,160 5.8282
Total 448,200.00 9.9121
Total Costs to be Accounted For 701,200.00 15.1829
Costs Accounted For:
Completed & Transferred 36,000 15.1829 546,583.86
Cost transferred to Dept 3 / FG 30,000 15.1829 455,486.55
Spoiled Goods Inventory 6,000 15.1829 91,097.31

In Process - End
Cost from Preceding Department 12,000 5.2708 63,250.00
Materials 9,300 4.0839 37,980.13
Overhead 9,160 5.8282 53,386.01 154,616.14
Total Costs As Accounted For 701,200.00
MULTILAB PROBLEM:

COST OF PRODUCTION REPORT

SCENARIO A - NO LOST UNITS

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 37,000
Units to be Accounted For 37,000
Units Completed & Transferred Out 23,000 100% 23,000 100% 23,000
Units in process - end 8,000 50% 4,000 60% 4,800
6,000 75% 4,500 88% 5,280
Units Lost during the period - - -
Units as Accounted For 37,000 31,500 33,080

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 650,000.00 37,000 17.5676

Costs added in the department:

Materials 250,000.00 31,500 7.9365
Conversion Costs 300,200.00 33,080 9.0750
Total 550,200.00 17.0115
Total Costs to be Accounted For 1,200,200.00 34.5790

Costs Accounted For:

Completed & Transferred 23,000 34.5790 795,318.04

In Process - End
Cost from Preceding Department 14,000 17.5676 245,945.95
Materials 8,500 7.9365 67,460.32
Conversion Costs 10,080 9.0750 91,475.70 404,881.96
Total Costs As Accounted For 1,200,200.00

COST OF PRODUCTION REPORT

SCENARIO B - 4000 LOST UNITS DISCOVERED AT THE BEGINNING

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 37,000
Units to be Accounted For 37,000
Units Completed & Transferred Out 19,000 100% 19,000 100% 19,000
Units in process - end 8,000 50% 4,000 60% 4,800
6,000 75% 4,500 88% 5,280
Units Lost during the period 4,000 0% - 0% -
Units as Accounted For 37,000 27,500 29,080

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 650,000.00 33,000 19.6970

Costs added in the department:

Materials 250,000.00 27,500 9.0909
Conversion Costs 300,200.00 29,080 10.3232
Total 550,200.00 19.4142
Total Costs to be Accounted For 1,200,200.00 39.1111

Costs Accounted For:

Completed & Transferred 19,000 39.1111 743,111.38

In Process - End
Cost from Preceding Department 14,000 19.6970 275,757.58
Materials 8,500 9.0909 77,272.73
Overhead 10,080 10.3232 104,058.32 457,088.62
Total Costs As Accounted For 1,200,200.00

COST OF PRODUCTION REPORT

SCENARIO C - 4000 LOST UNITS DISCOVERED AT THE END

Materials Labor and Overhead

Equivalent Equivalent
Quantity Schedule Actual Units Work Done Work Done
Production Production
Units In Process - Beginning -
Units Received / Transferred In 37,000
Units to be Accounted For 37,000
Units Completed & Transferred Out 19,000 100% 19,000 100% 19,000
Units in process - end 8,000 50% 4,000 60% 4,800
6,000 75% 4,500 88% 5,280
Units Lost during the period 4,000 100% 4,000 100% 4,000
Units as Accounted For 37,000 31,500 33,080

Costs Charged to the Department:

Equivalent Equivalent
Production Unit Cost
Cost from Preceding Department 650,000.00 37,000 17.5676

Costs added in the department:

Materials 250,000.00 31,500 7.9365
Conversion Costs 300,200.00 33,080 9.0750
Total 550,200.00 17.0115
Total Costs to be Accounted For 1,200,200.00 34.5790
Costs Accounted For:
Completed & Transferred 23,000 34.5790 795,318.04
Cost transferred to Dept 3 / FG 19,000 34.5790 657,001.86
Spoiled Goods Inventory 4,000 34.5790 138,316.18

In Process - End
Cost from Preceding Department 14,000 17.5676 245,945.95
Materials 8,500 7.9365 67,460.32
Overhead 10,080 9.0750 91,475.70 404,881.96
Total Costs As Accounted For 1,200,200.00