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Orca Share Media1543303289630 PDF
Orca Share Media1543303289630 PDF
CHAPTER 11
1. b 5. C 9. c
2. d 6. C 10. A
3. d 7. D 11. A
4. b 8. D 12. B
1. (c)
Materials:
Units transferred out (100%) 255,000
Units in process, April 30 (100%) 25,000
EUP 280,000
Conversion Costs:
Units transferred out (100%) 255,000
Units in process, April: (25,000 x 60%) 15,000
EUP 270,000
2. (b)
Equivalent Units of Production:
Materials:
Units completed and transferred out (100%) 85,000
Units in process, end (100%) 14,000
EUP 99,000
3. (b)
Equivalent Units of Production – Materials
Units completed and transferred out (100%) 44,000
Units in process, July 31 (100%) 12,000
EUP 56,000
4. (b)
Transferred in costs (4,000 x P50 P200,000
2
5. (a)
Units completed (100%) 20,000
Units in process, end: (8,000 x 75%) 6,000
EUP – conversion costs 26,000
6. (a)
Equivalent units of production:
Materials:
Units completed and transferred out (100%) 12,000
Units in process, May 31: (100%) 8,000
EUP 20,000
Conversion costs:
Units completed and transferred out (100%) 12,000
Units in process, May 31: (8,000 75%) 6,000
EUP 18,000
Unit costs:
Transferred in cost:
Work in process, May1 (6,000 units) P12,000
Current cost (14,000 units) 29,000
Total P41,000
Divided by ÷20,000
Unit cost P 2.05
Cost added:
Materials:
BWIP P2,500
Current cost 5,500
Total P8,000
EUP ÷20,000 0.40
Conversion costs:
BWIP P1,300
Current cost 5,000
Total P6,300
EUP ÷18,000 0.35
Total unit costs P 2.80
7. (d)
8. (b)
Work in process, end: (420 x P12.35) P 5,187
9. (a)
Equivalent production for materials:
Units transferred out (100%) 6,700
Units in process, end (300 x60%) 180
EUP 6,880
10. (a)
Direct materials:
Units completed (100%) 460
Units in process, May 31: (120x 60%) 72
EUP 532
Conversion costs:
Units completed (100%) 460
Units in process, May 31: (120 x 30%) 36
EUP 496
11. (a)
Unit costs:
Materials:
Work in process, May 1 P 49,336
Current cost 322,000
Total material cost P 371,336
EUP (per #10) ÷ 532
Unit cost P 698
Conversion costs:
Work in process, May 1 P 9,104
Current cost 139,200
Total conversion costs P 148,304
EUP (per #10) ÷ 496
Unit cost P 299
Total unit cost P 997
12. (a)
Equivalent Units of Production:
Direct materials:
Units completed 34,000
Units in process, July 31: (16,000 x100%) 16,000
EUP 50,000
Conversion costs:
Units completed 34,000
Units in process, July 31: (16,000 x 50%) 8,000
EUP 42,000
Unit Costs:
Materials:
Work in process, July 1 P 60,000
Current costs 280,000
Total material costs P340,000
EUP ÷ 50,000
Unit material cost P 6.8
Conversion costs:
Work in process, July 1 P 70,000
Current costs 371,000
Total conversion costs P441,000
EUP ÷ 42,000
Unit conversion cost P 10.5
13. (a)
Units completed: (34,000 x P17.30) P588,200
14. (a)
Equivalent Units of Production:
Materials:
Units completed and transferred out 90
Units in process, June 30 0
EUP 90
Conversion costs:
Units completed and transferred out 90
Units in process, June 30: (30 x 50%) 15
EUP 105
Unit Costs:
Transferred In:
Work in process, June 1 P 40,000
Current costs 87,200
Total P127,200
EUP: (40 + 80) ÷ 120
5
Direct materials:
Work in process, June 1 P 0
Current cost 36,000
Total 36,000
EUP ÷ 90
Unit cost P 400
Conversion costs:
Work in process, June 1 P 18,000
Current cost 49,725
Total P 67,725
EUP ÷ 105
Unit cost P 645
Total unit costs P 2,105
15. (d)
Units completed: (90 x P2,105) P189,450
16. (a)
Equivalent Units of Production:
Materials:
Units completed 90
Work in process, July 31 (100%) 10
EUP 100
Conversion costs:
Units completed 90
Work in process, July 31 (70%) 7
EUP 97
Unit Costs:
Materials:
BWIP P1,800,000
Current costs 8,000,000
Total material cost P9,800,000
EUP ÷ 100
Unit material cost P 98,000
Conversion costs:
BWIP P 479,500
Current cost 3,740,000
Total conversion costs P4,219,500
EUP ÷ 97
Unit conversion costs P 43,500
Total unit costs P 141.500
6
17. (a)
Units completed: (90 x P141,500) P12,735,000
18. (a)
Department X:
Units in process, May 1 500
Units started in process 15,000
Total units to account for 15,500
Units completed (10,500)
Units still in process 5,000
Department Y:
Units in process, May 1 300
Transferred in from Department X 8,000
Total units to account for 8,300
Units completed (7,000)
Units still in process 1,300
19. (a)
Equivalent Units of Production:
Materials:
Transferred out 50,000
Work in process, June 30 20,000
EUP 70,000
Conversion Costs:
Transferred out 50,000
Work in process, June 30: (40% x 20,000) 8,000
EUP 58,000
Units Costs:
Materials:
BWIP P 187,500
Current cost 1,212,500
Total P1,400,000
EUP ÷ 70,000
Unit material cost P 20.00
Labor cost:
BWIP P 53,750
Current cost 816,250
Total P 870,000
EUP ÷ 58,000
Unit conversion cost P 15.00
Overhead: (P15 x 70%) P 10.50
Total unit costs P 45.50
20. (a)
Cost of goods manufactured: (50,000 x P45.50) P2,275,000
Less: Finished goods inventory, June 30 72,500
Cost of goods sold P2,202,500
7
21. (b)
Department 1 Department 2
Work in process, June 1 34,000 33,000
Started in process/transferred in 117,000 132,500
Total units to account for 151,000 165,500
Transferred out (132,500) ( 131,200)
Units still process, June 30 18,500 34,300
22. (b)
Materials Conversion Costs
Units transferred out 131,200 131,200
Ending work in process 34,200 (100%) 25,725 (75%)
EUP 165,500 156,925
23. (d)
Beginning work in process P23,000
Materials added 29,000
Conversion costs added 36,000
Total cost of units placed in process 88,000
Less: Ending work in process 19,000
Cost of units transferred out to finished goods P69,000
24. (d)
Equivalent Units of Production:
Materials:
Transferred out 8,000
Ending work in process: (10,000 – 8,000) 100% 2,000
EUP 10,000
Conversion costs:
Transferred out 8,000
Ending work in process: (2,000 x 70%) 1,400
EUP 9,400
Unit costs:
Materials: (P15,000 / 10,000) P1.50
Conversion costs: (P24,440 / 9,400) 2.60
Total unit costs P4.10
25. (d)
Materials: (2,000 x P1.50) P3,000
Conversion costs: (1,400 x P2.60) 3,640
Total work in process P6,640
26. (a)
Equivalent Units of Production Materials CC
Transferred out 85,000 85,000
Ending work in process 5,000 (100%) 3,000 (60%)
EUP 90,000 88,000
Transferred Out:
Materials: (85,000 x P1.31) P111,350
Conversion costs: (85,000 x P0.75) 63,750
27. (d)
10,000 units + 80,000 units = P90,000 units
28. (c)
Equivalent Units of Production Materials CC
Completed production 184,000 184,000
Ending work in process 1 43,200 (90%) 9,200 (40%)
EUP 227,200 203,200
29. (d)
Ending work in process:
Materials: (43,200 x P2.3) P 99,360
Conversion costs: (19,200 x P3.0) 57,600
Total costs of EWIP P156,960
30. (c)
Equivalent Units of Production Materials CC
Completed and transferred out 92,000 92,000
Ending work in process 21,600 (90%) 9,600 (40%)
EUP 113,600 101,600
31. (d)
Materials: (21,600 x P4.60) P 99,360
Conversion costs: (9,600) x P6.00) 57,600
Cost of ending work in process P156,960
32. (a)
Beginning work in process P 2,047
Costs transferred in – this month 8,483
Total costs transferred in P10,530
EUP: (8,900 + 30,100) ÷39,000
Transferred in unit cost P 0.27
9
33. (a)
Equivalent Units of Production:
Materials:
Units transferred out 29,000
Ending work in process (100%) 10,000
EUP 39,000
34. (b)
Equivalent Units of Production:
Direct labor:
Units transferred out 29,000
Ending work in process (10,000 x 75%) 7,500
EUP 36,500
35. (a)
BWIP P 534.00
Current costs, November 2,021.00
Total overhead costs P2,555.00
EUP (same as labor) ÷ 36,000
Overhead unit cost P 0.07
Solutions to Problems
Problem 11-1
Materials:
Units transferred out 73,000
Units in process, end: (100%) 12,000
EUP 85,000
Conversion costs:
Units transferred out 73,000
Units in process, end: (12,000 x 2/3) 8,000
EUP 81,000
10
2. Refining Department
Cost of Production Report
Month of January, 2010
Problem 11-2
2. Processing Department
Cost of Production Report
Month of April
Quantity Schedule Units
Beginning work in process 1,000
Transferred in 6,000
11
Problem 11-3
Materials:
Transferred out to next department 106,000
Ending work in process (100%) 8,000
EUP 114,000
Conversion costs:
Transferred out to next department 106,000
Ending work in process, (8,000 units x 70%) 5,600
EUP 111,600
12
Problem 11-4
Materials:
Units transferred out to finished goods 8,500
Units in ending work in process: (2,000 x 75%) 1,500
EUP 10,000
Conversion costs:
Units transferred out to finished goods 8,500
Units in ending work in process: (2,000 x 50%) 1,000
EUP 9,500
Problem 11-5
1. Assembling Department
Computation of Equivalent Units of Production
Month of June 2010
Materials:
Completed and transferred out 8,000
Ending work in process: (4,000 x 90%) 3,600
EUP 11,600
Labor:
Completed and transferred out 8,000
Ending work in process: (4,000 x 70%) 2,800
EUP 10,800
Overhead:
Completed and transferred out 8,000
Ending work in process: (4,000 x 35%) 1,400
EUP 9,400
2. Assembling Department
Cost of Production Report
Month of June 2010
Problem 11-6
1. Mixing Department
Equivalent Units of Production
Month of May 2010
Direct materials:
Transferred out to Bottling Department 75,000
Ending work in process 9,000
EUP 84,000
Conversion costs:
Transferred out to bottling Department 75,000
Ending work in process (60% x 9,000) 5,400
EUP 80,400
2. Mixing Department
Cost of Production Report
Month of May 2010
4. Bottling Department
Equivalent Units of Production
Month of May 2010
Direct materials:
Transferred out to finished goods 68,000
Ending work in process - 0 -
EUP 68,000
Conversion costs;
Transferred out to finished goods 68,000
Ending work in process (8,000 x 100%) 8,000
EUP 76,000
Bottling Department
Cost of Production Report
Month of May 2010
Problem 11-7
Conversion costs:
Transferred out 45,000 43,000
Ending work in process (75%; 50%) 7,500 4,500
EUP 52,500 47,500
2. Department 1
Cost of Production Report
Month of April 2010
Department 2
Cost of Production Report
Month of April 2010
Problem 11-8
2. Orange Company
Cost of Production Report
Month of March 2010
Blending Department Finishing Department
Quantity Schedule Units Units
Beginning work in process 200 100
Started in process/transferred in 2,300 2,180
Total to account for 2,500 2,280
Cost Schedule Total Costs Unit costs Total Costs Unit Costs
Transferred in from prior department:
BWIP P - P - P 15,188
This month - - 339,971
Total transferred in costs 355,159 P155.77
Cost added this department:
Materials: BWIP 8,000 1,641
This month 100,000 42,000
Total material costs 108,000 43.20 43,641 19.50
Problem 11-9
a. Striping Department:
b. Adhesion Department:
DL + OH = CC
DL + .80DL = CC
1.80DL = P171,000
DL = P95,000
OH = P95,000 x .80 = P76,000
c. Cost of goods manufactured is equal to the cost of goods transferred to finished goods
(P880,000).
OH = .80 DL
P90,000 = .80 DL
DL = P112,500