Chap 10

PROBLEM 1
1)FIFO
Materials Labor & FOH
Actual Work Equiv. Prod. Work done Equiv. Prod
done
Quantity to be accounted for
Units in process, beginning 10,000
Units started 45,000
Units to be accounted for 55,000
Quantity accounted for
Units completed
In process beginning 10,000 20% 2,000 40% 4,000
Started and completed 40,000 100% 40,000 100% 40,000,
Units in process (end) 5,000 50% 2,500 40% 2,000
Units accounted for 55,000 44,500 46,000
2) AVERERAGE
done
Units completed 50,000 100% 50,000 100% 50,000
Unit accounted for 55,000 52,500 52,000
PROBLEM 2
1) FIFO
done
Units completed
Started and completed 35,000 100% 35,000 100% 35,000
2) AVERERAGE
done
Units completed 50,000 100% 50,000 100% 50,000
PROBLEM 3
1) FIFO
done
Units in process, beginning 300
Units started 2,000
Units completed
In process beginning 300 40% 120 70% 210
Units in process (end) 600 40% 240 20% 120
Units accounted for 2,300 1,760 (1) 1,730(1)
Cost Schedule
Cost to be accounted for: Unit cost
Cost Work in process, beginning P 540
Cost added during the month
Materials 3,714/1,760 P 2.11 (2)
Labor & overhead 2,258/1,730 1.305 (2)
Total Cost added 5,972 P 3.415
Total cost to be accounted for P6,512 P 3.415
Cost accounted for as follows:
Completed and transferred
From Work in process, beginning
Cost last month P 540.00
Cost added this month
Materials (120 x P2.11) 253.20
Labor & Overhead (210 x 1.305) 274.05
From units started (1,400 x 3.415) 4,781.00 5,848.25 (3)
Work in process, end
Materials ( 240 x P2.11) 505.40
Labor & overhead (120 x P1.305) 156.60 662.00 (4)
Total cost accounted for P6,510.25
Problem 4
FIFO
done
Units completed
Cost per unit for materials P126,852/18,600 = P6.82

Cost per unit for conversion cost P219,120/16,600 = P13.20
AVERERAGE METHOD
done
Units completed 17,000 100% 17,000 100% 17,000
Cost per unit for materials (P 16,440 +126,852)/21,000 = 6.82

Cost per unit for conversion cost ( P31,700 + 219,120)/19,000 = 11.95
PROBLEM 5
AVERAGE METHOD
1. Materials Labor & overhead
Quantity to be accounted for Actual Work EP Work Done EP
Done
Units to be accounted for
Units in process, July 1 15,000
Units started in process 250,000
Completed & transferred 245,000 100% 245,000 100% 245,000
Units in process, July 31 20,000 100% 20,000 40% 8,000
2. Unit cost
Materials (P210,000+ 3,500,000)/265,000) P 14
Labor & overhead (P60,000+ 1,458,000)/253,000 ) 6
Total 20
====
3. Completed and transferred (245,000 x P20) P 4,900,000
==========
4. Work in process, July 31
Materials (20,000 x P14) P280,000
Labor and overhead (8,000 x P6) 48,000 P328,000
========
FIFO method
1. Materials Labor & overhead
Actual Work EP Work Done EP
Done
Units in process, July 1 15,000
Units started in process 250,000
Quantity accounted for as follows:
Completed & transferred out
From in-process, July 1 15,000 - - 1/3 5,000
From units started and completed 230,000 100% 230,000 100% 230,000
Units in process, July 31 20,000 100% 20,000 40% 8,000
2. Unit cost
Materials (3,500,000/250,000) P 14
Labor & overhead (P1,458,000/243,000) 6
P 20
=======
3. Completed and transferred
From in process, July 1
Cost last month P270,000
Cost added
Labor and overhead (5,000 x P6) 30,000 P 300,000
Started and completed (230,000 x P20) 4,600,000
P4,900,000
==========
4. Work in process, July 31
Materials (20,000 x P14) P 280,000
Labor & overhead (8,000 x P6) 48,000 P328,000
========
Problem 7
GDL Company
Cost of Production Report-Finishing Department (Average Method)
For the month ended October 31
Quantity Schedule
Materials Labor & overhead
Done
Units received 40,000
Units completed & transferred 35,000 100% 35,000 100% 35,000
Units in process, end 10,000 100% 10,000 50% 5,000
Units loss – normal 5,000
Units accounted for 50,000 45,000 40.000
Cost Schedule
Costs to be accounted for: Unit cost
Cost from preceding department
Work in process, beginning (October 1) P 40,000
Transferred In during the month 140,000
180,000 P 4.00
Cost added in this department
Work in process, Nov. 1
Materials P 20,000
Labor 39,000
Overhead 42,000
Materials 70,000 2.00
Labor 162,500 5.0375
Overhead 130,000 4.30
Total cost added 463,500 11.3375
Total cost to be accounted for P 643,500 P15.3375
Costs accounted for as follows:
Completed & transferred (35,000 x P15.3375) 536,812.50
Cost from preceding department (10,000 x P4) 40,000
Materials (10,000 x P2) 20,000
Labor (5,000 x 5.0375) 25,187.50
Overhead (5,000 x P4.30) 21,500 106,687.50
Total cost accounted for P643,500.00
Computations:
Work in process, October 1 P 40,000
Cost transferred during October 140,000
Total 180,000
Divide (50,000-5,000) 45,000
Unit cost P 4.00
=======
Materials (20,000+ 70,000)/45,000 P2.00
Labor (39,000 + 162,500)/40,000 5.0375
Overhead (42,000 + 130,000)/40,000 4.30
2. FIFO Method
GDL Company
Cost of Production Report –Finishing Department (FIFO )
For the month ended October 31
Quantity Schedule

Done
Completed and transferred out
From in-process, beginning 10,000 - - 1/4 2,500
From units started and completed 25,000 100% 25,000 100% 25,000
Units in process, end 10,000 100% 10,000 50% 5,000
Units lost -normal 5,000
Cost Schedule
Cost to be accounted for: Unit cost
Cost Work in process, Nov.1 P 141,000
Cost from the preceding department (Dept. 1) P140,000/40,000-5000 P4.00
Materials 70,000/35,000 2.00
Labor & overhead 162,500/32,500 5.00
Overhead 130,000/32,500 4.00
Total Cost added 362,500 11.00
Total cost to be accounted for P643,500 P15.00
Cost accounted for as follows:
Completed and transferred
From Work in process, Nov 1
Cost last month P 141,000
Cost added this month
Materials -
Labor (2,500 x P5) 12,500
Overhead] (2,500 x 4) 10,000
From units started (25,000 x P15) 375,0000 538,500
Cost from preceding department (10,000x P4) 40,000
Materials (10,000 x P2) 20,000
Labor (5,000 x P5) 25,000
Overhead (5,000 x P4) 20,000 105,000
Total cost accounted for P 643,500
Problem 10
Quantity Schedule
Done
Increase in units 4,000
Units completed & transferred 86,000 100% 86,000 100% 86,000
Units in process, end 10,000 100% 10,000 2/5 4,000
Units accounted for 96,000 96,000 90.000
Computations:
Work in process, March 1 P 11,800
Cost transferred during October 86,120
Total 97,920
Divide (Beg + Units received) 96,000
Unit cost P 1.02
Cost Dept. B
Beg + Added
Materials (3,125+ 21,835)/96,000 P.26
Labor (1,490 + 43,510))/90,000 .50
Overhead (1,320 + 34,680)/90,000 .40
1.16
Total unit cost P 2.18
2. Completed and transferred (86,000 x P2.18) P187,480

========
3. Total cost of work in process, end
Cost from preceding department (10,000 x 1.02) P 10,200
Direct materials (10,000 x P.26) 2,600
Labor (4,000 x P.50) 2,000
Overhead (4,000 x P.40) 1,600
P16,400
=======
Multiple choice
1) A 54,000 units
done
Units completed 50,000 100% 50,000
Units in process (end) 5,000 80% 4,000
Unit accounted for 55,000 54,000
2. A 50,500 units
done
Units completed
In process beginning 10,000 70% 7,000
Started and completed 40,000 100% 40,000,
Units accounted for 55,000 50,500
3. D P250,500
Work in process, beginning

Cost last month P17,500
Cost added 4,000 x P2 8,000
Started and completed (50,000 x P4.50) 225,000
P250,500
4. C P107,800
Materials Labor & Overhead
done
Units completed 22,000 100% 22,000 100% 22,000
Units in process (end) 8000 100% 8,000 50% 4,000
Unit cost per unit:
Materials (P10,000 + P47,000)/30,000 P1.90
Labor and Overhead (P4,500 + 73,500)/26,000 3.00
Total P4.90
Completed and transferred (22,000 x P4.90) P107,800
========
5. A P27,200
Materials (8,000 x P1.90) P15,200
Labor & overhead (4,000 x P3) 12,000
P27,200
=======
6. A 42,000 units
done
Units completed
7. A P562,500
Materials Labor & Overhead
done
Quantity to be accounted
for
0
0
Units completed 120,00 100% 120,000 100% 120,000
0
0
Cost from preceding department:

Work in process, beginning P80,000
Cost transferred in 251,000
331,000
Cost added this department:
Materials (37,600 + 122,400) 160,000
Labor & overhead (5,000 + 66,500) 71,500
Total cost to be accounted for P 562,500
8. C 140,000 units
9. D P0.55
Cost per unit -labor (P71,500/130,000) = P0.55
10. C P44,000

done
Units completed
In process beginning 15,000 40% 6,000
Started and completed 34,000 100% 34,000
11. B P5.75 P10,395
Cost to be accounted for P24,780

Less: Cost, Work in process beginning 630
Cost added this month 24,150/4,200 = P5.75 material cost per unit
Conversion cost added (4,500 x P2.25) P10,125

Add: Conversion cost beginning 270
Total cost to be accounted for P10,395
12. C 11,000 units

done
Units started 8,000
Units completed
Units in process (end) 2,000 45% 900 65% 1,300
13. A 6,000 units
14. C 9,300 units
15. C 9,550 units

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PROBLEM 1

Cost per unit for materials P126,852/18,600 = P6.82

Cost per unit for materials (P 16,440 +126,852)/21,000 = 6.82

Materials Labor & overhead

2. Completed and transferred (86,000 x P2.18) P187,480

Work in process, beginning

Cost from preceding department:

Cost per unit -labor (P71,500/130,000) = P0.55

Materials Labor & FOH

Cost to be accounted for P24,780

Conversion cost added (4,500 x P2.25) P10,125

12. C 11,000 units

13. A 6,000 units

14. C 9,300 units

15. C 9,550 units

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