Professional Documents
Culture Documents
Chapter 6 Cost
Chapter 6 Cost
Chapter 6 Cost
=
=
=
Carrying cost
=
=
=
Share of Freight
450
540
630
Page 2
Problem 4
1. FIRST-IN, FIRST-OUT
Received
5
400 x 7.00
2,800
400 x 8.00
3,200
16
24
600 x 9.00
Issued
800 x 6.00
4,800
800 x 6.00
200 x 7.00
4,800
1,400
5,400
27
Balance
1,600 x 6.00
1,600 x 6.00
400 x 7.00
1,600 x 6.00
400 x 7.00
400 x 8.00
800 x 6.00
400 x 7.00
400 x 8.00
800 x 6.00
400 x 7.00
400 x 8.00
600 x 9.00
200 x 7.00
400 x 8.00
600 x 9.00
9,600`
9,600
2.800
9,600
2,800
3,200
4,800
2,800
3,200
4,800
2,800
3,200
5,400
1.400
3,200
5,400
Issued
800 x 6.50
5,200
1,000 x 7.18
7,180
Balance
1,600 x 6.00
2,000 x 6.20
2,400 x 6.50
1,600 x 6.50
2,200 x 7.18
1,200 x 7.18
9,600
12.400
15,600
10,400
15,800
8,620
Page 3
2. WEIGHTED AVERAGE
Received
1
3
5 500 x 4.50
2,250
6
10
11
15 500 x 5.00
2,500
20 (300) x 5.00 ( 1,500)
26
Issued
250 x 4.00
1,000
150 x 4.20
110 x 4.20
( 10)x 4.20
630
462
( 42)
100 x 4.33
433
Balance
1,000 x 4.00
750 x 4.00
1,250 x 4.20
1,100 x 4.20
990 x 4.20
1,000 x 4.20
1,500 x 4.47
1,200 x 4.33
1,100 x 4.33
4,000
3,000
5,250
4,620
4,158
4,200
6,700
5,200
4,767
Balance
300 x 17.50
100 x 17.50
100 x 17.50
900 x 18.00
400 x 18.00
5,250
1,750
1,750
16,200
7,200
200 x 1750
3,500
100 x 17.50
500 x 18.00
1,750
9,000
21,900
25
2. AVERAGE
Received
1
8
10 900 x 18.00
18
20 1,200 x 18.25
25
Issued
400 x 18.00
600 x 18.25
7,200
10,950
Issued
200 x 17.50
3,500
600 x 17.95
10,770
1000 x 18.175
18,175
16,200
21,900
400 x 18.00
1,200 x 18.25
7,200
21,900
600 x 18.25
10,950
Balance
300 x 17.50
100 x 17.50
1,000 x 17.95
400 x 17.95
1,600 x 18.175
600 x 18.175
5,250
1,750
17,950
7,180
29,080
10,906
1,320,000
360,000
480,000
480,000
Page 4
2. Spoiled Goods
FO Control
Work in process (100 x 165)
3. Finished goods
Work in process
Unit cost = 1,303,500/7,900 = 165
8,000
8,500
16,500
1,303,500
1,303,500
1,320,000
360,000
480,000
480,000
2. Spoiled Goods
Work in process
8,000
3. Finished goods
Work in process
1,312000
8,000
1,312,000
c.
2.
Work in process
Materials
Payroll
FO Applied
Finished goods
Work in process
80,000
40,000
56,000
23,200
4,000
8,000
11,200
199,200
199,200
FO Control
Materials
Payroll
24,000
4,000
8,000
Page 5
c.
Finished goods
Work in process
c.
2.
180,000
180,000
75,000
25,000
20,000
30,000
(20,000 x 150%)
Work in process
Materials
Payroll
FO Applied
1,250
500
300
450
Finished goods
Work in process
76,250
76,250
Charged to all production (FO rate should be 160% of direct labor cost)
a.
Work in process
77,000
Materials
25,000
Payroll
20,000
FO Applied (20,000 x 160^)
32,000
b.
c.
FO Control
Materials
Payroll
FO Applied
1,280
500
300
480
(300 x 160%)
Finished goods
Work in process
77,000
77,000
Work in process
Materials
Payroll
FO Applied
5,000
2,000
2,000
100
60
20
20
Page 6
c.
2.
Finished goods
Work in process
c.
FO Control
Materials
Payroll
FO Applied
3.
4.
9,000
5,000
2,000
2,000
60
20
20
(300 x 160%)
Finished goods
Work in process
Work in process
Materials
Payroll
FO Applied
9,000
9,000
300,000
117,000
100,000
83,000
4,350
1,650
1,500
1,200
Spoiled goods
Work in process
825
Finished goods
Work in process
303,525
9,100
100
9,100
825
303,525
700,000
350,000
150,000
200,000
30,000
30,000
Page 7
c.
2.
Finished goods
Work in process
670,000
670,000
700,000
350,000
150,000
200,000
b.
c.
Spoiled goods
FO Control
Work in process (600 x 70)
Finished goods
Work in process (9,400 x 70)
30,000
12,000
42,000
658,000
658,000
P 125.00
5.00
2.00
P 132.00
b. Carrying costs
Cost of capital ( 132.00 x 15%)
Inventory insurance
Inventory tax ( 125.00 x 2%)
Total
P 19.80
3.00
2.50
P 25.30
c. Ordering costs
Shipping permit
Processing costs
Unloading
Total
P 300.00
23.00
90,00
P 413.00
Page 8
Problem 15 - Candice Foundry Inc.
1.
Spoiled units are due to internal failure
a.
Work in process
Materials
Payroll
FO Applied
b.
c.
2.
90,000
46,000
14,000
30,000
3,000
600
3,600
86,400
86,400
Spoiled goods
Work in process
3,000
Finished goods
Work in process
87,000
TRUE/FALSE
1.
True
2.
False
3.
False
4.
True
5.
True
Multiple choice
1,
a
2,
b
3,
d
4,
a
5,
c
6.
7.
8.
9.
10.
3,000
87,000
False
False
False
False
True
6.
b
7.
b
8.
a
9. 700 at 5,400
10.
b
11.
12.
13.
14.
15.
11.
12.
13.
14.
15.
a
a
c
c
d
True
False
False
False
False
16.
17.
18.
19.
20.
d
b
b
a
b