NOTE: This file should be read in conjunction with LEC06B_BSA 2103_011920.

pdf

Case No./Tab Scenario

1 FIFO; Abnormal Lost Units
2 FIFO; Normal Lost Units - Even Application of Cost
3 FIFO; Normal Lost Units - Uneven Application of Cost
4 FIFO; Increase in Units and Change in Unit Cost Due to Addition of Materials
5 WA; Normal Lost Units - Uneven Application of Cost
The Astro Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B,
and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials
used. Production data for the month follow:

Department A Department B Department C

In process, September 1 5,000 2/5 8,000 3/8 10,000 1/2
Transferred to next department 35,000 34,000 34,000
Abnormal lost units discovered:
(1) at start of processing 2,000 - -
(2) when 1/2 processed - 4,000 -
(3) at end of processing - - 7,000
In process, September 30 3,000 1/3 5,000 3/5 3,000 1/3

Cost Data:
Work in process, September 1 6,000 36,000 98,400
Cost added: Materials 17,000 72,000 92,500
Labor 59,500 36,000 55,500
Overhead 25,500 36,000 37,000

ASTRO MANUFACTURING COMPANY

Department A
Cost of Production Report
For the month ended, September 30

Work Equivalent
Quantity Schedule Actual units Done Units
In process, September 1 5,000
Started in process 35,000
Units to be Accounted For 40,000

In process, September 1, Finished & Transferred 5,000 3/5 3,000

Started, Finished & Transferred 30,000 100% 30,000
In process, September 30 3,000 1/3 1,000
Abnormal lost units at start of process 2,000 - -
Units Accounted For 40,000 34,000

Cost Schedule Total Costs

Work in Process, September 1 6,000
Current period costs 102,000 102,000
Total Cost to be Accounted For 108,000 102,000
Divided by EUP 34,000
Cost per EUP 3

Cost Assignment
Finished & Transferred
In Process, September 1
Cost last month 6,000
Cost to complete 9,000 15,000
Started, Finished & Transferred 90,000
Total Cost Transferred to Department B 105,000
Work in Process, September 30 3,000
Total Cost Accounted for 108,000

ASTRO MANUFACTURING COMPANY

Department B
Cost of Production Report
For the month ended, September 30
 Work Equivalent
Quantity Schedule Actual units Done Units
In process, September 1 8,000
Received from Preceding Department 35,000
Units to be Accounted For 43,000

In process, September 1, Finished & Transferred 8,000 5/8 5,000

Started, Finished & Transferred 26,000 100% 26,000
In process, September 30 5,000 3/5 3,000
Abnormal lost units at 1/2 completion 4,000 1/2 2,000
Units Accounted For 43,000 36,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, September 1 36,000
Current period costs 249,000 144,000 105,000
Total Cost to be Accounted For 285,000 144,000 105,000
Divided by EUP 36,000 35,000
Cost per EUP 7 4.00 3.00

Cost Assignment
Finished & Transferred
In Process, September 1
Cost last month 36,000
Cost to complete 20,000 56,000
Received this month, Finished & Transferred 182,000
Total Cost Transferred to Department C 238,000
Work in Process, September 30
Cost from Preceding Department 15,000
Cost this Department 12,000 27,000
Abnormal loss
Cost from Preceding Department 12,000
Cost this Department 8,000 20,000
Total Cost Accounted for 285,000

ASTRO MANUFACTURING COMPANY

Department C
Cost of Production Report
For the month ended, September 30

Work Equivalent
Quantity Schedule Actual units Done Units
In process, September 1 10,000
Received from Preceding Department 34,000
Units to be Accounted For 44,000

In process, September 1, Finished & Transferred 10,000 1/2 5,000

Started, Finished & Transferred 24,000 100% 24,000
In process, September 30 3,000 1/3 1,000
Abnormal lost units at end of process 7,000 100% 7,000
Units Accounted For 44,000 37,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, September 1 98,400
Current period costs 423,000 185,000 238,000
Total Cost to be Accounted For 521,400 185,000 238,000
Divided by EUP 37,000 34,000
Cost per EUP 12.00 5.00 7.00

Cost Assignment
Finished & Transferred
In Process, September 1
 Cost last month 98,400
Cost to complete 25,000 123,400
Received this month, Finished & Transferred 288,000
Total Cost Transferred to Storeroom 411,400
Work in Process, September 30
Cost from Preceding Department 21,000
Cost this Department 5,000 26,000
Abnormal loss
Cost from Preceding Department 49,000
Cost this Department 35,000 84,000
Total Cost Accounted for 521,400
The Sonic Manufacturing Co. manufactures a product in three successive departments - Department 1, Department 2, and Department 3.
Owing to rigid quality control measures, an unavoidable unit loss occurs during various stages of processing in each department. A loss
percentage not exceeding 6% of total production is considered normal. Production data for the month of October follow:

Department 1 Department 2 Department 3

In process, October 1 10,000 3/5 10,000 1/5 7,000 5/7
Transferred to next department 43,000 44,000 44,000
Normal lost units discovered:
(1) at end of processing 1,000 - -
(2) at start of processing - 3,000 -
(3) during processing - - 2,000
In process, October 31 6,000 1/3 6,000 1/2 5,000 1/5

Cost Data:
Work in process, September 1 30,100 59,805 105,020
Cost added: Materials 80,000 67,500 112,000
Labor 52,000 101,250 76,000
Overhead 40,000 56,250 52,000

SONIC MANUFACTURING COMPANY

Department 1
Cost of Production Report
For the month ended, October 31

Work Equivalent
Quantity Schedule Actual units Done Units
In process, October 1 10,000
Started in process 40,000
Units to be Accounted For 50,000

In process, October 1, Finished & Transferred 10,000 2/5 4,000

Started, Finished & Transferred 33,000 100% 33,000
In process, October 31 6,000 1/3 2,000
Normal lost units at the end of processing 1,000 100% 1,000
Units Accounted For 50,000 40,000

Cost Schedule Total Costs

Work in Process, October 1 30,100
Current period costs 172,000 172,000
Total Cost to be Accounted For 202,100 172,000
Divided by EUP 40,000
Cost per EUP 4.30
Adjustment for lost units 0.10
Adjusted unit cost (for units Finished & Transferred) 4.40

Cost Assignment
Finished & Transferred
In Process, October 1
Cost last month 30,100
Cost to complete 17,200
Adjustment for lost units 1,000 48,300
Started, Finished & Transferred 145,200
Total Cost Transferred to Department 2 193,500
Work in Process, October 31 8,600
Total Cost Accounted for 202,100

SONIC MANUFACTURING COMPANY

Department 2
Cost of Production Report
For the month ended, October 31
 Work Equivalent
Quantity Schedule Actual units Done Units
In process, October 1 10,000
Received from Preceding Department 43,000
Units to be Accounted For 53,000

In process, October 1, Finished & Transferred 10,000 4/5 8,000

Started, Finished & Transferred 34,000 100% 34,000
In process, October 30 6,000 1/2 3,000
Normal lost units at the start of processing 3,000 - -
Units Accounted For 53,000 45,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, October 1 59,805
Current period costs 418,500 225,000 193,500
Total Cost to be Accounted For 478,305 225,000 193,500
Divided by EUP 45,000 43,000
Cost per EUP 9.5000 5.00 4.50
Adjustment for lost units 0.3375
Adjusted unit cost (for units Finished & Transferred) 9.8375

Cost Assignment
Finished & Transferred
In Process, October 1
Cost last month 59,805
Cost to complete 40,000 99,805
Received this month, Finished & Transferred 334,475
Total Cost Transferred to Department 3 434,280
Work in Process, October 31
Cost from Preceding Department 27,000
Cost this Department 15,000
Adjustment for lost units 2,025 44,025
Total Cost Accounted for 478,305

SONIC MANUFACTURING COMPANY

Department 3 (Method I)
Cost of Production Report
For the month ended, October 31

Work Equivalent
Quantity Schedule Actual units Done Units
In process, October 1 7,000
Received from Preceding Department 44,000
Units to be Accounted For 51,000

In process, October 1, Finished & Transferred 7,000 2/7 2,000

Started, Finished & Transferred 37,000 100% 37,000
In process, October 31 5,000 1/5 1,000
Normal lost units during processing 2,000 - -
Units Accounted For 51,000 40,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, October 1 105,020
Current period costs 674,280 240,000 434,280
Total Cost to be Accounted For 779,300 240,000 434,280
Divided by EUP 40,000 44,000
Cost per EUP 15.87 6.00 9.87
Adjustment for lost units 0.47
Adjusted unit cost (for units Finished & Transferred) 16.34

Cost Assignment
Finished & Transferred
In Process, October 1
 Cost last month 105,020
Cost to complete 12,000 117,020
Received this month, Finished & Transferred 604,580
Total Cost Transferred to Storeroom 721,600
Work in Process, October 31
Cost from Preceding Department 49,350
Cost this Department 6,000
Adjustment for lost units 2,350 57,700
Total Cost Accounted for 779,300

SONIC MANUFACTURING COMPANY

Department 3 (Method II)
Cost of Production Report
For the month ended, October 31

Work Equivalent
Quantity Schedule Actual units Done Units
In process, October 1 7,000
Received from Preceding Department 44,000
Units to be Accounted For 51,000

In process, October 1, Finished & Transferred 7,000 2/7 2,000

Started, Finished & Transferred 37,000 100% 37,000
In process, October 31 5,000 1/5 1,000
Normal lost units during processing 2,000 - -
Units Accounted For 51,000 40,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, October 1 105,020
Current period costs 674,280 240,000 434,280
Total Cost to be Accounted For 779,300 240,000 434,280
Divided by EUP 40,000 44,000
Cost per EUP 15.8700 6.00 9.87
Adjustment for lost units 0.4935
Adjusted unit cost (for units Finished & Transferred) 16.3635

Cost Assignment
Finished & Transferred
In Process, October 1
Cost last month 105,020.00
Cost to complete 12,000.00
Adjustment for lost units 987.00 118,007.00
Received this month, Finished & Transferred 605,449.50
Total Cost Transferred to Storeroom 723,456.50
Work in Process, October 31
Cost from Preceding Department 49,350.00
Cost this Department 6,000.00
Adjustment for lost units 493.50 55,843.50
Total Cost Accounted for 779,300.00
The Megaman Manufacturing Co. manufactures a product in three successive departments - Mixing Department, Refining Department, and Finishing
Department. Normal lost units coming from those placed in process during the period or those received from preceding departments occur in all three
departments during processing. Production data for the month of March follow:

Mixing Department Refining Department Finishing Department

In process, March 1 (all materials,
1/2 labor and overhead) 4,000
(1/3 labor and overhead) 3,000
(1/4 labor and overhead) 4,000
Transferred to next department 38,000 36,000 36,000
Completed and on hand 1,000
In process, March 31 (all materials,
2/3 labor and overhead) 3,000
(1/2 labor and overhead) 4,000
(1/3 labor and overhead) 3,000
Units lost in process 2,000 1,000 1,000

Cost Data:
Work in process, September 1 4,482 6,512 15,860
Cost added: Materials 19,760 - -
Labor 24,180 34,040 33,120
Overhead 23,400 29,970 19,440

MEGAMAN MANUFACTURING COMPANY

Mixing Department
Cost of Production Report
For the month ended, March 31

Work Work
Quantity Schedule Actual units Done Materials Done Conversion
In process, March 1 4,000
Started in process 40,000
Units to be Accounted For 44,000

In process, March 1, Finished & Transferred 4,000 - - 1/2 2,000

Started, Finished & Transferred 34,000 100% 34,000 100% 34,000
Started, Finished & on hand 1,000 100% 1,000 100% 1,000
In process, March 31 3,000 100% 3,000 2/3 2,000
Normal lost units in process 2,000 - - - -
Units Accounted For 44,000 38,000 39,000

Cost Schedule Total Costs Materials Conversion

Work in Process, March 1 4,482
Current period costs 67,340 19,760 47,580
Total Cost to be Accounted For 71,822 19,760 47,580
Divided by EUP 38,000 39,000
Cost per EUP 1.74 0.52 1.22

Cost Assignment
Finished & Transferred
In Process, March 1
Cost last month 4,482
Cost to complete 2,440 6,922
Started, Finished & Transferred 59,160
Total Cost Transferred to Refining Department 66,082
Completed and on hand 1,740
Work in Process, March 31
Materials 1,560
Conversion 2,440 4,000
Total Cost Accounted for 71,822

MEGAMAN MANUFACTURING COMPANY

Refining Department
Cost of Production Report
For the month ended, March 31

Work
Quantity Schedule Actual units Done Equivalent Units
In process, March 1 3,000
Received from Preceding Department 38,000
Units to be Accounted For 41,000
In process, March 1, Finished & Transferred 3,000 2/3 2,000
Started, Finished & Transferred 33,000 100% 33,000
In process, March 31 4,000 1/2 2,000
Normal lost units in process 1,000 - -
Units Accounted For 41,000 37,000

Cost Schedule Total Costs Conversion Transferred In

Work in Process, March 1 6,512
Current period costs 130,092 64,010 66,082
Total Cost to be Accounted For 136,604 64,010 66,082
Divided by EUP 37,000 38,000
Cost per EUP 3.469 1.73 1.739
Adjustment for lost units 0.047
Adjusted unit cost (for units Finished & Transferred) 3.516

Cost Assignment
Finished & Transferred
In Process, March 1
Cost last month 6,512
Cost to complete 3,460 9,972
Received this month, Finished & Transferred 116,028
Total Cost Transferred to Finishing Department 126,000
Work in Process, March 31
Cost from Preceding Department 7,144
Cost this Department 3,460 10,604
Total Cost Accounted for 136,604

MEGAMAN MANUFACTURING COMPANY

Finishing Department
Cost of Production Report
For the month ended, March 31

Work
Quantity Schedule Actual units Done Equivalent Units
In process, March 1 4,000
Received from Preceding Department 36,000
Units to be Accounted For 40,000

In process, March 1, Finished & Transferred 4,000 3/4 3,000

Started, Finished & Transferred 32,000 100% 32,000
In process, March 31 3,000 1/3 1,000
Normal lost units in process 1,000 - -
Units Accounted For 40,000 36,000

Cost Schedule Total Costs Conversion Transferred In

Work in Process, March 1 15,860
Current period costs 178,560 52,560 126,000
Total Cost to be Accounted For 194,420 52,560 126,000
Divided by EUP 36,000 36,000
Cost per EUP 4.96 1.46 3.50
Adjustment for lost units 0.10
Adjusted unit cost (for units Finished & Transferred) 5.06

Cost Assignment
Finished & Transferred
In Process, March 1
Cost last month 15,860
Cost to complete 4,380 20,240
Received this month, Finished & Transferred 161,920
Total Cost Transferred to Storeroom 182,160
Work in Process, March 31
Adjusted Cost from Preceding Department 10,800
Cost this Department 1,460 12,260
Total Cost Accounted for 194,420
Capcom Foods, Inc. manufactures a product which is processed in two successive departments. The complementary materials added at
the start of the process in Department 2 increase the quantity received from Department 1 by 20%. In November, 40,000 units were
transferred from Department 1 at a unit cost of P6. Production data are as follows:

In process, November 1 12,000 units 1/3 completed

In process, November 30 10,000 units 2/5 completed
Work in process, November 1 100,400
Cost added in November:
Materials 94,500
Labor 73,500
Overhead 42,000

CAPCOM FOODS, INC.

Department 2
Cost of Production Report
For the month ended, November 30

Work Equivalent
Quantity Schedule Actual units Done Units
In process, November 1 12,000
Started in process 40,000
Increase in units, 20% 8,000
Units to be Accounted For 60,000

In process, November 1, Finished & Transferred 12,000 2/3 8,000

Started, Finished & Transferred 38,000 100% 38,000
In process, November 30 10,000 2/5 4,000
Units Accounted For 60,000 50,000

Cost Schedule Total Costs DM, DL, OH Transferred In

Work in Process, November 1 100,400
Current period costs 450,000 210,000 240,000
Total Cost to be Accounted For 550,400 210,000 240,000
Divided by EUP 50,000 48,000
Cost per EUP 9.20 4.20 5.00

Cost Assignment
Finished & Transferred
In Process, November 1
Cost last month 100,400
Cost to complete 33,600 134,000
Started, Finished & Transferred 349,600
Total Cost Transferred to Storeroom 483,600
Work in Process, November 30
Cost from Preceding Department 50,000
Cost this Department 16,800 66,800
Total Cost Accounted for 550,400
Sega Products, Inc. has two processing departments, Grinding and Blending. The Grinding Department adds all materials at the start of the process and a unit
loss in unavoidable at the end of processing. The Blending Department adds 50% of materials needed at the start of the process and 50% when 1/2 completed.
Lost units are encountered throughout the process. Production data are as follows:

Grinding Department Blending Department

In process, March 1 3,000 2/3 12,000 4/5
Transferred to the next department 18,000 22,000
In process, March 31 1,500 1/3 6,000 1/3
Lost units 500 2,000

Cost Data:
Work in process, September 1
Cost from preceding department - 110,700
Cost this department: Materials 14,700 35,730
Labor 7,400 19,120
Overhead 5,300 15,020
Cost added: Materials 75,300 44,270
Labor 38,200 32,240
Overhead 34,600 27,220

SEGA PRODUCTS, INC.

Grinding Department
Cost of Production Report
For the month ended, March 31

Work Work
Quantity Schedule Actual units Done Materials Done Conversion
In process, March 1 3,000
Started in process 17,000
Units to be Accounted For 20,000

Finished & Transferred 18,000 100% 18,000 100% 18,000

In process, March 31 1,500 100% 1,500 1/3 500
Normal lost units at the end 500 100% 500 100% 500
Units Accounted For 20,000 20,000 19,000

Cost Schedule Total Costs Materials Conversion

Work in Process, March 1 27,400 14,700 12,700
Current period costs 148,100 75,300 72,800
Total Cost to be Accounted For 175,500 90,000 85,500
Divided by EUP 20,000 19,000
Cost per EUP 9.00 4.50 4.50
Adjustment for lost units 0.25
Adjusted unit cost (for units Finished & Transferred) 9.25

Cost Assignment
Finished & Transferred 166,500
Work in Process, March 31
Materials 6,750
Conversion 2,250 9,000
Total Cost Accounted for 175,500

SEGA PRODUCTS, INC.

Blending Department
Cost of Production Report
For the month ended, March 31

Work Work
Quantity Schedule Actual units Done Materials Done Conversion
In process, March 1 12,000
Received from Preceding Department 18,000
Units to be Accounted For 30,000

Finished & Transferred 22,000 100% 22,000 100% 22,000

In process, March 31 6,000 50% 3,000 1/3 2,000
Normal lost units during process 2,000 - - - -
Units Accounted For 30,000 25,000 24,000

Cost Schedule Total Costs Materials Conversion Transferred In

Work in Process, March 1 180,570 35,730 34,140 110,700
Current period costs 270,230 44,270 59,460 166,500
Total Cost to be Accounted For 450,800 80,000 93,600 277,200
Divided by EUP 25,000 24,000 30,000
Cost per EUP 16.34 3.20 3.90 9.24
Adjustment for lost units 0.66
Adjusted unit cost (for units Finished & Transferred) 17.00

Cost Assignment
Finished & Transferred 374,000
Work in Process, March 31
Adjusted cost from preceding department 59,400
Materials 9,600
Conversion 7,800 76,800
Total Cost Accounted for 450,800