FIFO and Weighted method for Process Costing

Problem 1

 Beginning Inventory 10,000 units (Materials 20% complete) (Conversion 30% complete)
- 20% and 30% complete so that means we will only put 80% and 70% of the work in this process
- Applies only to beginning inventory

 Transferred out 50,000 units

 Ending Inventory (Materials 10% complete) (Conversion 15% complete)
 Started this month 45,000 units

1) Compute Equivalent units production for materials and conversion using FIFO and Weighted method

Total Units to Account for Total Units accounted for

Beginning 10,000.00 Completed and Transferred Out 50,000.00
Started In 45,000.00 Ending in process 5,000.00
55,000.00 55,000.00

FIFO Materials Conversion

Beginning 10,000.00 8,000.00 7,000.00
STARTED AND COMPLETED 40,000.00 40,000.00 40,000.00
(Total - Beginning - Ending)
Ending in process 5,000.00 500.00 750.00
EUP 55,000.00 48,500.00 47,750.00

WEIGHTED Materials Conversion

Completed and Transferred Out 50,000.00 50,000.00 50,000.00
Ending in process 5,000.00 500.00 750.00
EUP 55,000.00 50,500.00 50,750.00
Problem 2

 Beginning Inventory P48,240, 8000 units (30% complete)

 Includes P16,440 (Materials) and P31,800 (Conversion)
 Transferred Out 17,000 units
 Ending Inventory 5000 units
 80% complete (Materials) and 40%(Conversion)
 Costs incurred are P126,852 (Materials) and P219,120 (Conversion)
- FIFO uses only the current costs while Weighted uses both in computing the cost per EUP

1) Compute for equivalent production cost per EUP for materials and conversion

Total Units to Account for Total Units accounted for

Beginning 8,000.00 Completed and Transferred Out 17,000.00
Started In 14,000.00 Ending in process 5,000.00
22,000.00 TOTAL 22,000.00

Costs Materials Conversion TOTAL

Beginning 16,440.00 31,800.00 48,240.00
Current 126,852.00 219,120.00 345,972.00
For Weighted 143,292.00 250,920.00 394,212.00

FIFO Materials Conversion

Beginning 8,000.00 5,600.00 5,600.00
STARTED AND COMPLETED 9,000.00 9,000.00 9,000.00
(Total - Beginning - Ending)
Ending in process 5,000.00 4,000.00 2,000.00
EUP 22,000.00 18,600.00 16,600.00

Current Cost/Unit 6.82 13.20

Completed and Transferred Out

Beginning 48,240.00
Beginning in Process 112,112.00 (Cost/Unit) x Units
160,352.00
STARTED AND COMPLETED 180,180.00
340,532.00
Ending In Process 53,680.00
Total Cost to account for 394,212.00

WEIGHTED Materials Conversion

Completed and Transferred Out 17,000.00 17,000.00 17,000.00
Ending in process 5,000.00 4,000.00 2,000.00
EUP 22,000.00 21,000.00 19,000.00

All Cost/Unit 6.82 13.21

Completed and Transferred Out 340,505.65

Ending In process 53,706.35
394,212.00
Problem 3

 Beginning Inventory 15,500 units, P27,950 Materials (100% complete) and P20,150 Conversion (65% complete)
 Started in 36,000 units
 Ending Inventory 3500 units Materials (100% complete) Conversion (45% complete)
 Materials (P54,000) and Conversion (P79,000)

Total Units to Account for Total Units accounted for

Beginning 15,500.00 Completed and Transferred Out 48,000.00
Started In 36,000.00 Ending in process 3,500.00
51,500.00 TOTAL 51,500.00

Costs Materials Conversion TOTAL

Beginning 7,800.00 20,150.00 27,950.00
Current 54,000.00 79,000.00 133,000.00
For Weighted 61,800.00 99,150.00 160,950.00

FIFO Materials Conversion

Beginning 15,500.00 5,425.00
STARTED AND COMPLETED 32,500.00 32,500.00 32,500.00
(Total - Beginning - Ending)
Ending in process 3,500.00 3,500.00 1,575.00
EUP 51,500.00 36,000.00 39,500.00

Current Cost/Unit 1.50 2.00

Completed and Transferred Out

Beginning 27,950.00
Beginning in Process 10,850.00 (Cost/Unit) x Units
38,800.00
STARTED AND COMPLETED 113,750.00
152,550.00
Ending In Process 8,400.00
Total Cost to account for 160,950.00

WEIGHTED Materials Conversion

Completed and Transferred Out 48,000.00 48,000.00 48,000.00
Ending in process 3,500.00 3,500.00 1,575.00
EUP 51,500.00 51,500.00 49,575.00

All Cost/Unit 1.20 2.00

Completed and Transferred Out 153,600.00

Ending In process 7,350.00
160,950.00
Problem 4

 Units are inspected at the end of the period

 Spoilage is charged to overhead

Completion
Given Units Materials Labor Overhead
Beginning Inventory 1,000.00 60% 35% 25%
Started In Process 9,000.00
Completed and Transferred 8,000.00
Ending Inventory 1,500.00 100% 75% 50%

Costs Beginning Inventory During The month

Materials 2,520.00 72,480.00
Labor 1,540.00 21,560.00
Overhead 2,800.00 43,450.00
6,860.00 137,490.00

Total Units to Account for Total Units accounted for

Beginning 1,000.00 Completed and Transferred Out 8,000.00
Started In 9,000.00 Abnormal 500.00
10,000.00 Ending in process 1,500.00
TOTAL 10,000.00

Costs Materials Labor Overhead TOTAL

Beginning 2,520.00 1,540.00 2,800.00 6,860.00
Current 72,480.00 21,560.00 43,450.00 137,490.00
For Weighted 75,000.00 23,100.00 46,250.00 144,350.00

- Find remaining from total to get abnormal losses

WEIGHTED Materials Labor Overhead
Completed and Transferred Out 8,000.00 8,000.00 8,000.00 8,000.00
Abnormal losses 500.00 500.00 500.00 500.00
Ending in process 1,500.00 1,500.00 1,125.00 750.00
EUP 10,000.00 10,000.00 9,625.00 9,250.00

All Cost/Unit 7.50 2.40 5.00

Completed and Transferred Out 119,200.00

FO Control 7,450.00 (500 x Total cost/unit)
Ending In process 17,700.00
144,350.00

FIFO Materials Labor Overhead

Beginning 1,000.00 400.00 650.00 750.00
STARTED AND COMPLETED 7,000.00 7,000.00 7,000.00 7,000.00
(Total - Beginning - Ending)
Abnormal losses 500.00 500.00 500.00 500.00
Ending in process 1,500.00 1,500.00 1,125.00 750.00
EUP 10,000.00 9,400.00 9,275.00 9,000.00

Current Cost/Unit 7.71 2.32 4.83

Completed and Transferred Out

Beginning 6,860.00
Beginning in Process 8,216.03 (Cost/Unit) x Units
15,076.03
STARTED AND COMPLETED 104,040.61
119,116.64
FO Control 7,431.47 (500 x Total cost/unit)
Ending In Process 17,801.89
Total Cost to account for 144,350.00
Problem 5: Three Departments, Molding, Assembly and Finishing

 Finishing Department (Use weighted average)

- May 1 Work In Process 1400 units 70% complete (conversion)
- May 30 Work In process 40% complete (conversion)
- Transferred in from assembly department 14,000 units and 700 spoiled units
- Completed and Transferred to Finished Goods 11,200 units
- Direct Material is added at the beginning of the processing in the department without changing the number of
units being processed
- Conversion Cost is added evenly throughout the process
- All spoilage is discovered at final inspection which happens when units are completed (560 considered normal)

A) Cost per equivalent unit of production

- Transferred in P5
- Materials P1
- Conversion P3 TOTAL P9

 Compute for cost of units completed and transferred, charged to factory overhead control and ending in process

Weighted Average Transferred in Materials Conversion

Beginning 1,400.00 Completed and Transferred Out 11,200.00 11,200.00 11,200.00 11,200.00
Transferred In 14,000.00 Ending in process 3,500.00 3,500.00 3,500.00 1,400.00
15,400.00 Normal 560.00 560.00 560.00 560.00
Abnormal (700-560) 140.00 140.00 140.00 140.00
EUP 15,400.00 15,400.00 15,400.00 13,300.00

Costs/EUP 5.00 1.00 3.00

Costs (Cost/Unit) x Units

Completed and Transferred Out 100,800.00
Normal Losses 5,040.00
105,840.00 (To Finished Goods)

Overhead (Abnormal) 1,260.00 (Expensed)

End In Process 25,200.00
Total Cost to account for 132,300.00