Excel Professional Services

Process Cost

Problem 1
(a) I.P., beg.
Received
TOTAL

6,000
44,000
50,000
MATERIALS

CONVERSION

AVERAGE:
C&T
I.P.,end
Lost unit
TOTAL

WD
40,000 100%
5,000
5,000
50,000

EUP
40,000

40,000

WD
EUP
100% 40,000
30%
1,500
100% 5,000
46,500

Problem 1
I.P., beg.
Received
TOTAL
FIFO:

6,000
44,000
50,000
MATERIALS

C&T: I.P.,beg.
Received
I.P., end
Lost units
TOTAL

CONVERSION

WD EUP WD EUP
6,000 100% 6,000 60% 3,600
34,000 100% 34,000 100% 34,000
5,000
30% 1,500
5,000
100% 5,000
50,000
40,000
44,100

Problem 1(B)
I.P., beg.
Received
TOTAL
AVERAGE:
C&T
I.P.,end
Lost Unit (normal)
TOTAL

10,000
30,000
40,000
MATERIALS

CONVERSION

WD
EUP WD
32,000 100% 32,000 100%
6,000 100% 6,000 40%
2,000
40,000
38,000

EUP
32,000
2,400
34,400

Problem 1(B)
I.P., beg.
Received
TOTAL
FIFO:

10,000
30,000
40,000
MATERIALS

WD

C&T: I.P., beg.

Received
I.P., end
Lost Unit (normal)
TOTAL

EUP

CONVERSION

WD EUP
10,000
70% 7,000
22,000 100% 22,000 100% 22,000
6,000 100% 6,000 40% 2,400
2,000
40,000
28,000
31,400

Problem 1-C
(c ) I.P., beg.
Received
TOTAL

5,000
25,000
30,000

AVERAGE:

MATERIALS CONVERSION
WD
EUP
WD
EUP
22,000 100% 22,000 100% 22,000
5,000 100% 5,000 80% 4,000

C&T
I.P., end
Lost Unit
(abnormal)
TOTAL

3,000 100% 3,000

30,000
30,000

60%

1,800
27,800

Problem 1-C
I.P., beg.
Received
TOTAL

FIFO:

5,000
25,000
30,000

MATERIALS

WD

EUP

CONVERSION

WD
EUP
C&T: I.P.,beg.
5,000
50% 2,500
Received
17,000 100% 17,000 100% 17,000
I.P., end
5,000 100% 5,000 80% 4,000
Lost Unit (abnormal) 3,000 100% 3,000 60% 1,800
TOTAL
30,000
25,000
25,300

Problem 2
FIFO(DEPT. 1)
Q.S.: I.P.,beg.
S.I.P.
TOTAL

6,000
44,000
50,000

(1)EUP:

MATERIALS

WD

C&T: I.P.,beg.
I.P.,end
TOTAL

6,000
34,000
10,000
50,000

EUP

CONVERSION

WD
EUP
1/3
2,000
100% 34,000 100% 34,000
100% 10,000 3/5
6,000
44,000
42,000

Problem 2
(2)UNIT COST:
M: 19,800/44,000
CC:16,800/42,000
36,600
(3)Cost to be accounted for:
Cost of I.P., beg.
Cost added
TOTAL

= P0.45
= P0.40
P0.85

P 5,200
36,600
P 41,800

Problem 2
(4)Cost accounted for as follows:
C&T: from I.P., beg.
CLM
Cost added:
CC (2,000 * 0.40)
from S.I.P. (34,000 * 0.85)
Total Cost of Completed Units
I.P.,end: M (10,000 * 0.45)
CC (6,000 * 0.40)
Total Accounted for

P 5,200
800

P 4,500
2,400

6,000
28,900
P 34,900

6,900
P 41,800

Problem 2
DEPT. 2
I.P.,beg.
Received
TOTAL

(1) EUP
C&T: I.P.,beg.
Received
I.P.,end
TOTAL

5,000
40,000
45,000

MATERIALS

WD
5,000 30%
32,000 100%
8,000 70%
45,000

CONVERSION

EUP
WD
EUP
1,500
2/5
2,000
32,000 100% 32,000
5,600
7/8
7,000
39,100
41,000

Problem 2
(2)Unit Cost:
PD: 34,900/40,000 = P 0.8725
M: 34,799/39,100 =
0.89
CC:45,920/41,000 =
1.12
115,619
P 2.8825
(3)Total Cost to be
Accounted for:
Cost of I.P.,beg.
Cost transferred in
Cost added
TOTAL

P 10,000
34,900
80,719
P 125,619

Problem 2
(4)Total Cost Accounted for as
follows:
C&T: from I.P.,beg.
Cost LM
Cost added:
M(1,500 * .89)
CC(2,000 * 1.12)
from Received (32,000 * 2.8825)
TOTAL COST of COMPLETED UNITS
I.P.,end
CFPD: 8,000 * .8725=
M: 5,600 * .89=
CC: 7,000 * 1.12=
TOTAL COST ACCOUNTED for

P 10,000
1,335
2,240

P 6,980
4,984
7,840

P 13,575
92,240
P 105,815

19,804
P 125,619

PROBLEM 3: AVERAGE
COSTING
I.P.,beg.
15,000
Started in P
TOTAL

20,000
35,000

(1) EUP
MATERIALS

C&T
I.P.,end
TOTAL

CONVERSION

WD EUP WD EUP
30,000 100% 30,000 100% 30,000
5,000 100% 5,000 2/5 2,000
35,000
35,000
32,000

(2)Unit Cost:

PROBLEM 3:

M (8,145 + 10,860)/35,000=
CC (4,365 + 9,843)/32,000=
12,510 20,703

(3)Total Cost to be Accounted for:

Cost of I.P.,beg.
Cost added
TOTAL

P 0.543
0.444
P 0.987

P 12,510
20,703
P 33,213

PROBLEM 3:
(4)Cost Accounted for as follows:
C&T: (30,000 * .987)
I.P.,end: M: 5,000 * .543=2,715
CC: 2,000 * .444=888

P 29,610

TOTAL

P 33,213

3,603

PROBLEM 3:
DEPT. 2: AVERAGE
COSTING
Q.S.: I.P.,beg.
Received
TOTAL

9,000
30,000
39,000

EUP

C&T
I.P.,end
TOTAL

MATERIALS CONVERSION
WD
EUP
WD
EUP
31,000 100% 31,000 100% 31,000
8,000 100% 8,000
7/8
7,000
39,000
39,000
38,000

PROBLEM 3:
(2)Unit Cost:
PD:(29,610 + 9,000)/39,000=
M:(3,996 + 30 636)/39,000=
CC:(3,330 + 38,850)/38,000=
TOTAL:
7,326 69,486

P0.99
0.888
1.11
P2.988

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. (7,326 + 9,000)
Cost transferred in
Cost added
TOTAL

P 16,326
29,610
69,486
P 115,422

PROBLEM 3:
(4) Total Cost Accounted for as follows:
C&T: 31,000 * 2,988
I.P.,end: CFPD: 8,000 * .99= 7,920
M: 8,000 * .888= 7,104
CC: 7,000 * 1.11= 7,770
TOTAL

P 92,628

22,794
P 115,422

PROBLEM 4: FIFO
I.P.,beg.
Received
TOTAL
(1)EUP
C&T: I.P.,beg.
Received
I.P.,end
Lost Unit (N)
TOTAL

10,000
40,000
50,000
MATERIALS
WD
EUP
10,000
25,000 100%
10,000 100%
5,000 100%
50,000

25,000
10,000
5,000
40,000

CONVERSION
WD
EUP
1/4
2,500
100% 25,000
1/2
5,000
100%
5,000
37,500

PROBLEM 4:

(2)Unit Costs:
PD: 140,000/40,000
M: 70,000/40,000=
CC: 292,500/37,500=
TOTAL: 362,500

P 3.50
1.75
7.8
P 13.05

(3)Total Cost to be Accounted for:

Cost of I.P.,beg.
Cost transferred in
Cost added
TOTAL

P 140,500
140,000
362,500
P 643,000

PROBLEM 4

(4)Total Accounted for as

follows:

C&T: I.P.,beg. CLM

Cost added (2,500 * 7.80)
Received (25,000 * 13.05)
Subtotal
CNLU (5,000 * 13.05)
TOTAL Cost of Completed Units
I.P.,end: CFPD (10,000 *3.50)=
M (10,000 * 1.75)=
CC (5,000 * 7.80)=
TOTAL COST ACCOUNTED for

140,500
19,500

P 35,000
17,500
39,000

160,000
326,250
P 486,250
65,250
P 551,500

91,500
P 643,000

PROBLEM 4
PROBLEM 4: AVERAGE METHOD
I.P.,beg.
Received
TOTAL

10,000
40,000
50,000

EUP
C&T
I.P.,end
Lost Unit (N)
TOTAL

35,000
10,000
5,000
50,000

MATERIALS CONVERSION
WD
EUP
WD
EUP
100% 35,000 100% 35,000
100% 10,000 1/2
5,000
100% 5,000 100% 5,000
50,000
45,000

PROBLEM 4

(2)Unit Cost:
PD (140,000 + 38,000)/50,000=
M (21,500 + 70,000)/50,000=
CC (81,000 + 292,500)/45,000=
102,500 362,500

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. (38,000 + 102,500)
Cost transferred in
Cost added
TOTAL

P 3.56
1.83
8.3
P 13.69
P 140,500
140,000
362,500
P 643,000

PROBLEM 4
(4)Total Cost Accounted for as follows:
C&T: 35,000 * 13.69
CNLU(5,000 * 13.69)
TOTAL
I.P.,end: CFPD: 10,000 * 3.56=
M: 10,000 * 1.83=
CC: 5,000 * 8.30=
TOTAL

P 479,150
68,452
P 547,600
35,600
18,300
41,500

95,400
P 643,000

Problem 5
Received from PD
(1) EUP

C&T
I.P.,end
Lost Unit (N)
Lost Unit (A)
TOTAL

12,000
MATERIALS
WD
EUP
9,000 100% 9,000
2,000
450
550
12,000
9,000

CONVERSION
WD
EUP
100% 9,000
70%
1,400
90%
405
90%
495
11,300

Problem 5
(2)Unit Cost:
PD: 84,000/12,000=
M: 18,000/9,000=
CC: 45,200/11,300=
TOTAL

P 7.00
2.00
4.00
P 13.00

(3)Total Cost to be Accounted for:

Cost transferred in
Cost added
TOTAL

84,000
63,200
P 147,200

Problem 5
(4)Total Cost Accounted for as follows:
C&T: 9,000 * 13
CNLU: (450 * 7) + (405 * 4)
Total Cost of Completed Units
FOC: (550 * 7) + (495 * 4)
I.P.,end:
CFPD: (2,000 * 7)
CC (1,400*4)
TOTAL

P 117,000
4,770
P 121,770
5,830
14,000
5,600

19,600
P 147,200

Multiple Choice
Item 1 C
Compl/Transferred
IP, Ending
Total

4,800
700
5,500

Materials
Conversion
Work Done EUP Work Done EUP
100%
4,800
100%
4,800
100%
700
60%
420
5,500
5,220

Item 2 A
Material Unit Cost: (P2,400 + P25,100)/ 5,500
P5

Multiple Choice
Item 3 C

Compl/transferred
IP, Ending
Total

6,800
400
7,200

Conversion
Work Done
EUP
100%
6,800
50%
200
7,000

Item 4 A
Conversion Unit Cost (P550 + P13,450) / 7,000 = P2.00

Multiple Choice
Item 5 D

Compl/transferred
IP, Ending
Lost units (Normal)
Total

110,000
70,000
30,000
210,000

Materials
Work Done EUP
100% 110,000
100% 70,000
100% 30,000
210,000

Multiple Choice
Item 6 D

C&T
IP, Ending
Total

255,000
25,000
280,000

Materials
Conversion
Work Done EUP Work Done
EUP
100%
255,000
100%
255,000
100%
25,000
60%
15,000
280,000
270,000

Multiple Choice
Item 7 C
Compl/transferred
IP, Ending
Total
Unit Costs :

12,000
8,000
20,000

Materials
Work Done EUP
100%
12,000
100%
8,000
20,000

PD
(P12,000 + P29,000) / 20,000
M
(P 2,500 + P 5,500 ) / 20,000
CC
(P 1,000 + P 5,000 ) / 18,000
Cumulative Unit Cost

Conversion
Work Done
EUP
100%
12,000
75%
6,000
18,000
=
=
=

P 2.05
0.40
0.33
P 2.78

Multiple Choice
Item 8 C
Compl/transferred
IP, Ending
Total

Materials
WD
EUP
105,000 100% 105,000
20,000
125,000
105,000

Conversion
WD EUP
100% 105,000
80% 16,000
121,000

Multiple Choice
Item 9 B
Compl/transferred
IP, Ending
Total

37,000
3,000
40,000

Conversion Unit Cost (P3,400 + P15,000) / 38,200

Conversion
Work Done EUP
100%
37,000
40%
1,200
38,200
=

P0.48

Item 10 B
Preceding Dept Unit Cost (P2,900 + P17,500) / 40,000 =
Transferred-in cost of IP, end (3,000 EUP x P0.51)

P0.51
P1,530

CLASSROOM DRILL
Item1 D
Compl/transferred
IP, Ending
Total

44,000
12,000
56,000

Materials
Work Done EUP
100%
44,000
100%
12,000
56,000

Material Unit Cost (P3,000 + P25,560) / 56,000 = P0.51 x 12,000 = P6,120

CLASSROOM DRILL
Item 2 C
Compl/transferred
IP, Ending
Total

15,000
5,000
20,000

Materials
Work Done EUP
100%
15,000
100%
5,000
20,000

Conversion
Work Done
EUP
100%
15,000
65%
3,000
18,000

CLASSROOM DRILL

Item 3 D
Unit Conversion Cost: (P2,000 + P3,000) / 18,000
= P5,000/18,000

CLASSROOM DRILL
Item 4 D
WIP, beg
+ Total Manufacturing Cost
WIP, end
= Cost of Goods Mftd.
Therefore:
P8,000 + (P29,000 + P36,000) P4,000 =

P69,000

CLASSROOM DRILL
Item 5 A
Materials & Conversion
Work Done
EUP
Compl/transferred
800
100%
800
Lost units, Normal
100
Lost units, Abnormal
100
100%
100
Total
1,000
900
Unit Cost (P5,000 + P3,000 P180) / 900 EUPs
= P8.80
Cost of goods manufactured = 800 units completed x P8.80 = P7,040

CLASSROOM DRILL

Item 6 A

CLASSROOM DRILL
Item 7 C
Compl/transferred
IP, Ending
Total

21,000
3,000
24,000

Materials
Work Done
EUP
100%
21,000
100%
3,000
Average M 24,000
Less
4,000
FIFO M
20,000

Conversion
Work Done
EUP
100%
21,000
60%
1,800
22,800
2,000
20,800

CLASSROOM DRILL
Item 8 B
Average Unit Costs: Materials (P1,992 + P12,000) / 24,000 = P0.583
Conversion (P1,920 + P19,968) / 22,800 = .960
Cost of IP, Ending : Materials (3,000 x P0.583)
Conversion (1,800 x P0.960)
Total Cost

P1,749
1,728
P3,477

FIFO Unit Costs

P0.600
0.960
P1,800
1,728
P3,528

: Materials
(P12,000 / 20,000)
Conversion (P19,968 / 20,800)
Cost of IP, Ending Materials
(3,000 x P0.60)
Conversion (1,800 x P0.96)
Total Cost

CLASSROOM DRILL

Item 9 B

Item 10 B
C&T: From IP, beg
From SIP
IP, Ending
Total

6,000
10,000
2,000
18,000

Materials
Work Done EUP
100%
10,000
100%
2,000
12,000

Unit Costs: Materials (P6,000 / 12,000)

Conversion (P9,000 / 15,000)
Total

Conversion
Work Done
EUP
2/3
4,000
100%
10,000

1,000
15,000
P0.50
0.60
P1.10

C & T: from IP, beginning Cost last month

Cost added this month:
CC (4,000 x P0.60)
From Started in Process (10,000 x P1.10)
Total cost of completed units

P 4,800

IP, Ending Materials (2,000 x P0.50)

Conversion (1,000 x P0.60)

P 1,000
600

2,400

P 7,200
11,000
P18,200
P 1,600