10-13 Process Costing

1
CHAPTER 10 16. (a)

Materials are added in Department 1.
1. b 6. c 11. d 17. (c)
2. c 7. c Units transferred out to finished goods (100%) 61,400
3. b 8. c Units in process, end (18,600 x 72%) 13,392
4. b 9. c Equivalent units of production – conversion cost 74,792
5. b 10. a 18. (b)
Equivalent units of production:
Units finished and transferred to finished goods 28,000
Units in process, end (9,000 x 35%) 3,150
1. (d) EUP 31,250
Units started in process 95,000
Units in process, end - Dept. 1 ( 21,000) Unit cost:
a
Units in process, end - Dept. 2 ( 12,000) Transferred in cost: (P24,050 / 37,000) P0.65
vi
Units transferred out to finished goods 62,000 This department: (P18,690 / 31,150) 0.60
2. (a) Units in process, end:
Units in process, beginning 6,000 Transferred in cost: (9,000 x P0.65) P5,850
Units placed in process 14,000 Cost this department: (3,150 x P0.60) 1,890
Units in process, end (4,200) Cost of units in process, end P7,740
d
Units transferred out to Dept. 2 15,800 19. (b)
3. (a) Equivalent units of production:
re
Units completed and transferred out (100%) 29,000 Materials:
Units in process, end (3,000 x 80%) 2,400 Units finished and transferred out 48,000
Equivalent units of production – Materials 31,400 Ending work in process 12,000
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4. (a) EUP 60,000
P188,400 / 31,400 = P6.00
5. (a) Conversion cost:
Units transferred to finished goods (100%) 4,300 Units finished and transferred out 48,000
s
Ending work in process (400 x 25%) 100 Ending work in process (12,000 x 70%) 8,400
Equivalent units of production 4,400 EUP 56,400
as
6. (a)
P14,080 / 4,400 = P3.20 Unit costs:
7. (a) Transferred in cost: (P24,750 / 55,000) P0.45
100 x P3.20 = P320 This department:
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8. (a) Materials; (P7,200 / 60,000) P0.12
Units placed in production 73,000 CC: (P53,580 / 56,400) 0.95 0.95
Units transferred out to next department (67,000) Total unit cost P1,52
Units in ending work in process 6,000 20. (b)
m e
Units transferred out to next department (100%) 67,000 Materials:
10.
Units in ending work in process
(b)
(6,000 x 1/3)
Equivalent units of production – overhead
co rc 69,000
2,000 Units transferred out (15,000 – 3,000)
Units in process, end
EUP
12,000
-0-
12,000
o. ou
P282,900 / 69,000 = P4.10 x 67,000 = P274,700.
11. (a) Conversion cost:
2,000 EUP x P4.10 = P8,200 Units transferred out 12,000
12. (a) Units in process, end (3,000 x 2/3) 2,000
er res
Units completed and transferred out (100%) 3,620 EUP 14,000
Units completed and on hand (100%) 80
Units in ending work in process (200 x 65%) 130 Cost of units transferred out:
Equivalent units of production 3,830 Transferred in; (P13,500 / 15,000) P0.90
Materials: (12,000 x 4 x P.02) = P960 / 12,000 0.08
Unit cost = (P27,193 / 3,830) P7.10 Conversion cost: (P14,210 / 14,000) 1.015
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Total unit cost P1,995

Labor ost of units transferred out: (3,620 x P7.10) P25,702 Cost of units transferred out: (12,000 x P1.995) P23,940
21. (d)
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Materials:
80 x P7.10 = P568 Units transferred out to finished goods 530,000
14. (a) Ending units in process:
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Units started into production 3,900 10% x 70,000 = 7,000 -0–

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Units completed 3,700 40% x 70,000 = 28,000 -0–

Units in process, end 200 15% x 70,000 = 10,500 10,500
15. (a) 35% x 70,000 = 24,500 24,500 35,000
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130 x P7.10 EUP 565,000

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EUP 10,000
Conversion cost:
Units transferred out to finished goods 530,000 Conversion cost:
Ending units process: Units completed 9,000
7,000 x 30% 2,100 Units in process, end (1,000 x50%) 500
28,000 x 60% 16,800 EUP 9,500
10,500 x 75% 7,875
24,500 x 85% 20,825 47,600 Unit costs:
EUP 577,600 Materials: (P720,000 / 10,000) P72
Conversion cost: (760,000 / 9,500) 80
Unit cost:
Transferred in: (P300,000 / 500,000) P . 60 Materials: 26. (a)
(P559,350 / 565,000) .99
a
Conversion cost: (P606,480 / 577,600) 1.05 Equivalent units of production: Chemical P Chemical Q
vi
Total unit cost P2.64 Materials:
Completed and transferred out 35,000 35,000
Cost of ending work in process: Ending work in process:
Transferred in: (70,000 x P0.60) P 42,000 Chemical P: (15,000 x 100%) 15,000
Materials: (35,000 x P0.99) 34,650 Chemical Q: - 0 -
d
Conversion cost: (47,600 x P1.05) 49,980 EUP 50,000 35,000
Total P126,630
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Conversion cost:
22. (a) Completed and transferred out 35,000
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Ending work and process; (15,000 x 2/3) 10,000
Transferred in cost: (32,000 x P8.39( P268,480 EUP 45,000
Cost added:
Direct labor: (20,000 x P3.19) P63,800 Unit costs:
s
Overhead: (20,000 x P1.20) 24,000 87,800 Materials:
Cost to account for P356,280 Chemical P: (P250,000 / 50,000) P 5.00
as
Chemical Q: (P70,000 / 35,000) 2.00
Conversion cost: (P135,000 / 45,000) 3.00
23. (b) Total unit cost P10,00
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Unit cost from preceding department: (P391,500 / 78,300) P 5.00 Completed and transferred out: (35,000 x P10) P350,000
Unit cost this department:
Direct materials P 1.23
Conversion costs 2.50 3.73 27. (a)
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Total unit costs P 8.73
Ending work in process::
Total units to account for
Units transferred in: (P508,959 / P8.73)
Units in process, end co rc 78,300
58,300
20,000
Materials: Chemical P (15,000 x P5)
Conversion cost: (10,000 x P3)
Cost of ending work in process
P 75,000
P105,000
30,000
o. ou
Total cost to account for:
Units transferred to finished goods P508,959
Units in process, end:
er res
Transferred in cost (20,000 x P5.00) P100,000
Cost added this department:
DM: (20,000 x P1.23) 24,600 Problem 10-1
CC: (20,000 x 45%) x P2.50 22,500 147,100
Total cost to account for P656,059 D E P A R T M E N T S
1 2 3 4 5
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Units started in process 10,000 - - - -

24. (a) Units transferred in - (b) 4,000 3,000 (c) 2,400 (g) 2,100
Units to account for 10,000 4,000 3,000 2,400 2,100
P1,480,000 / 10,000 units = P148
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Transferred to next department (a) 4,000 3,000 (d) 2,400 (f) 2,100 -
Transferred to finished goods - - - - (h) 1,600
25. (a)
Ending work in process 6,000 (c) 1,000 600 300 500
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Units accounted for 10,000 4,000 3,000 2,400 2,100

Materials:
Units completed 9,000 PROBLEM 10-2
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Units in process, end 1,000

Dept. A Dept. B Dept. C
3
Materials:
Transferred out (100%) 15,000 12,000 9,000 Cost accounted for:
Ending work in process 10,000 Transferred out P25,740 = 11,000 x P2.34
EUP 25,000 12,000 9,000 Work in process, end:
Cost transferred in 2,480 = 2,000 x 1.24
Conversion cost: Cost added:
Transferred out 15,000 12,000 9,000 CC 756 = 900 x 0.84
Ending work in process 7,500 1,500 900 Total cost accounted for P28,976
EUP 22,500 13,500 9,900
Problem 10-5
1. Equivalent Units of Production Dept. 1 Dept. 2
Materials:
Problem 10-3 Units transferred out (100 %) 60,000 55,000
a
Ending units in process 15,000 -0-
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Materials: EUP 75,000 55,000
Units transferred out: (50,000 – 10,000) 40,000
Units in process, end: Conversion cost:
10,000 x 25% = 2,500 x 20% 500 Units transferred out 60,000 55,000
10,000 x 30% = 3,000 x 50% 1,500 Ending units in process 9,000 4,000
d
10,000 x 25% = 2,500 x 80% 2,000 EUP 69,000 59,000
10,000 x 20% = 2,000 x 100% 2,000 6,000
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EUP 46,000 2. Department 1
Cost of Production Report
Conversion cost: Month of January, 2010
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Units transferred out 40,000
Units in process, end: Quantity Schedule Units
2,500 x 35% 875 Units started in process 75,000
3,000 x 55% 1,650
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2,500 x 80% 2,000 Units transferred out 60,000
2,000 x 95% 1,900 6,425 Units in process, end 15,000
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EUP 46,425 Total accounted for 75,000
Problem 10-4 Cost Schedule Total Cost EUP Unit Cost

Direct materials P300,000 ÷ 75,000 = P4.00
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Conversion costs 258,750 ÷ 69,000 = 3.75
1. Equivalent units of production Total cost to account for P558,750 P7.75
Materials:
Units transferred out: (13,000 – 2,000) 11,000 Transferred out P465,000 = 60,000 x P7.75
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Units in process, end -0– Units in process, end:
EUP 11,000 Materials 60,000 = 15,000 x 4.00
Conversion cost:
Units transferred out co rc 11,000
CC
Total accounted for P558,750
33,750 = 9,000 x 3.75
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Units in process, end (2,000 x 45%) 900 Department 2
EUP 11,900 Cost of Production Report
Month of January, 2010
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Quantity Schedule Units
2. Department 2 Units transferred in 60,000
Month of July 31, 2010 Units transferred out 55,000
Units in process, end 5,000
Quantity Schedule: Units Total accounted for 60,000
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Transferred in 13,000
Cost Schedule Total Cost EUP Unit Cost
Transferred out 11,000 Transferred in cost P465,000 ÷ 60,000 = P 7.75
Work in process, end 2,000 Cost added this department: CC 243,375 ÷ 59,000 = 4.125
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Total accounted for 13,000 Total cost to account for P708,375 P11.875
Cost Schedule Total Cost EUP Unit Cost Transferred out P653,125 = 55,000 x P11.875
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Cost transferred in P16,120 ÷ 13,000 = P1.24 Units in process, end:

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Cost added in this dept. Transferred in 38,750 = 5,000 x 7.75

Materials 2,860 ÷ 11,000 = 0.26 Cost added: CC 16,500 = 4,000 x 4.125
CC 9,996 ÷ 11,900 = 0.84 Total accounted for P708,375
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Total cost to account for P28,976 P2.34 Problem 10-6

4
Transferred in cost P71,300 ÷ 115,000 = P0.62
(1) Equivalent Units of Production Dept. 1 Dept. 2 Dept. 3 Cost added this department: CC 24,087 ÷ 114,700 = 0.21
Materials: Total cost to account for P95,387 P0.83
Units transferred out 125,000 115,000 112,000
Units in process, end 25,000 - 0 - - 0 - Transferred out to finished goods P92,960 = 112,000 x P0.83
EUP 150,000 115,000 112,000 Ending work in process:
Transferred in cost 1,860 = 3,000 x 0.62
Conversion Costs Cost added this dept.: CC 567 = 2,700 x 0.21
Units transferred out 125,000 115,000 112,000 Total accounted for P95,387
Units in process, end 10,000 1,000 2,700
EUP 135,000 116,000 114,700 Problem 10-7
(2) Cost of Production Reports: 1. Equivalent Units of Production Dept. 1 Dept. 2
a
Materials:
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Department 1: Transferred out 15,000 7,000
Quantity Schedule Units Completed and on hand - 1,000
Started in process 150,000 Ending work in process 8,000 - 0-
EUP 23,000 8,000
Transferred out 125,000
d
Ending work in process 25,000 Conversion cost:
Total accounted for 150,000 Transferred out 15,000 7,000
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Completed and on hand - 1,000
Cost Schedule Total Cost EUP Unit Cost Ending work in process 6,500 5,250
Materials P21,000 ÷ 150,000 = P0.14 Conversion costs EUP 21,500 13,250
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24,300 ÷ 135,000 = 0.18
Total cost to account for P45,300 P0.32 2. Cost of Production Report
Transferred out P40,000 = 125,000 x P0.32 Department 1
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Ending work in process: Quantity Schedule Units
Materials 3,500 = 25,000 x 0.14 Started in process 25,000
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Conversion cost 1,800 = 10,000 x 0.18
Total accounted for P45,300 Transferred out 15,000
Ending work in process 10,000
Department 2 Total accounted for 25,000
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Transferred in 125,000 Cost Schedule Total Cost EUP Unit Cost
Direct materials P12,650 ÷ 23,000 = P0.55
Transferred out 115,000 Conversion cost 18,705 ÷ 21,500 = 0.87
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Ending work in process 10,000 Total cost to account for P31,355 P1.42
Total accounted for 125,000
Cost Schedule
Transferred in cost co rc
P40,000
Total Cost
÷ 125,000 =
EUP
P0.32
Unit Cost
Transferred out
Ending work in process: DM
CC
4,400
5,655
P21,300
=
=
= 15,000 x
8,000 x
6,500 x 0.87
0.55
P1.42
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Cost added this department: Total accounted for P31,355
Conversion cost 34,800 ÷ 116,000 = 0.30 Problem 10-7 (Continued)
Total cost to account for P74,800 P0.62
Department 2
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Transferred out P71,300 = 115,000 = P0.62
Ending work in process: Quantity Schedule Units
Transferred in cost 3,200 = 10,000 = 0.32 Transferred in 15,000
Cost added this dept. – CC 300 = 1,000 = 0.30
Total accounted for P74,800 Transferred out to finished goods 7,000
Completed and on hand 1,000
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Problem 10-6 (continued): Total accounted for 15,000
Department 3 Cost Schedule Total Cost EUP Unit Cost

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Quantity Schedule Units Transferred in cost P21,300 ÷ 15,000 = P 1.42

Transferred in 115,000 Cost added this department: CC 16,430 ÷ 13,250 = 1.24
Total cost to account for P37,730 P 2.66
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Ending work in process 3,000 Transferred out to finished goods P18,620 = 7,000 x P 2.66
Total accounted for 115,000 Completed and on hand 2,660 = 1,000 x 2.66
Ending work in process:
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Cost Schedule Total cost EUP Unit Cost Transferred in cost 9,940 = 7,000 x 1.42
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Cost added this dept.: CC 6,510 = 5,250 x 1.24 Transferred out to finished goods 1,800
Total accounted for P37,730 Ending work in process (60 x 40%) 24
EUP 1,824
Problem 10-8
Labor:
1. Equivalent Units of Production: Transferred out to finished goods 1,800
Ending work in process (60 x 10%) 6
Materials: 101 102 103 104 EUP 1,806
Transferred out 250,000 250,000 250,000 250,000
Ending units in process: 2. Peninsula Company – Assembly Department
50,000 x 30% = 15,000 15,000 15,000 - - Cost of Production Report
50,000 x 35% = 17,500 17,500 17,500 - - Month of August
50,000 x 15% = 7,500 7,500 7,500 7,500 -
a
50,000 x 20% = 10,000 10,000 10,000 10,000 10,000 Quantity Schedule Units
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EUP 300,000 300,000 17,500 10,000 Started in process 2,000
Conversion Cost: Transferred out to next department 1,860

Transferred out 250,000 Work in process, end 140
Ending units in process: Total accounted for 2,000
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15,000 x 45% 6,750
17,500 x 50% 8,750 Cost Schedule Total Cost EUP Unit Cost
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7,500 x 65% 4,875 Materials P30,000.00 ÷ 2,000 = P15.00
10,000 x 98% 9,800 Labor 29,670.00 ÷ 1,965 = 15.10
EUP 280,175 Overhead 18,830.00 ÷ 1,965 = 9.58
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Total cost to account for P78,500.00 P39.68
2. Unit costs:
Materials: Transferred out to next department P73,808.00* = 1.860 x P39.68
101: (P6,000 / 300,000) P0.02 Work in process, end:
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102: (P3,000 / 300,000) 0.01 Materials 2,100.00 = 140 x 15.00
103: (P9,362.50 / 267,500) 0.035 Labor 1,586.00 = 105 x 15.10
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104: (P13,000 / 260,000) 0.05 P0.115 Overhead 1,006.00 = 105 x 9.58
Conversion cost: (P117,763.50 / 280,175) 0.42 Total work in process 4,692.00
Total unit costs P0.535 Total cost accounted for P78,500.00
*P3 adjustment for rounding.
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Problem 10-8 (Continued):
Peninsula Company – Finishing Department
Cost of ending work in process inventory: Cost of Production Report
Materials: Month of August
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101: (50,000 x P0.02) P 1,000.00
102: (50,000 x P0.01) 500.00 Quantity Schedule Units
103: (17,500 x P0.035)
104: (10,000 x P0.05)
Total co rc 612.50
500.00
P 2,612.50
Transferred in from prior department 1,860
Transferred out to finished goods 1,800

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Conversion cost: (30,175 x P0.42) 12,673.50 Work in process, end 60
Total cost P15,286.00 Total accounted for 1,860

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Problem 10-9 Transferred in cost from prior dept. P 73,808.00 ÷ 1,860 = P39.68
Materials 68,000.00 ÷ 824 = 37.28
1. Equivalent Units of Production: Labor 13,660.00 ÷ 1,806 = 7.57
Overhead 7,825.00 ÷ 1,824 = 4.29
Assembly Department: Total cost to account for P163,298.00 P88.82
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Materials:
Transferred out to next department 1,860 Transferred out to finished goods P159,874.00* = 1,800 x P88.82
Ending work in process (100%) 140 Work in process, end:
EUP 2,000 Transferred in cost 2,381.00 = 60 x 39.68
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Cost added this dept.:

Conversion cost: Materials 895.00 = 24 x 37.28
Transferred out 1,860 Labor 45.00 = 6 x 7.57
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Ending work in process: (140 x 75%) 105 Overhead 103.00 = 24 x 4.29

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EUP 1,965 Total cost of work in process 3,424.00

Total costs accounted for P163,298.00
Finishing Department: *P2 Rounding adjustment
Work in process – Assembly Department
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Materials and overhead: 3. 78,500

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Work in process – Finishing Department 89,490
Materials 98,000 Quantity Schedule Units
Factory payroll 43,330 Transferred in from prior department 5,400
Factory overhead control 26,660
To record allocation of production cost. Transferred out to next department 5,000
Work in process, end 400
4. Work in process – Finishing Department 73,808 Total accounted for 5,400
Work in process – Assembly Department 73,808
To record transfer of goods from Assembly to Cost Schedule Total Cost EUP Unit Cost
Finishing Department. Transferred in cost P56,225 ÷ 5,400 = P10.41203
5. Finished goods 159,874 Materials 16,786 ÷ 5,380 = 3.12007
Work in process – Finishing Department 159,874 Labor 14,840 ÷ 5,300 = 2.80
a
To record completion of goods transferred to finished Overhead 7,120 ÷ 5,340 = 1.33333
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Goods inventory. Total costs to account for P94,971 P17.66543
Problem 10-10 Transferred out to next department P88,328* = 5,000 x P17.66543

Work in process, end:
1. Equivalent Units of Production Transferred in cost 4,164 = 400 x 10.41203
d
Trimming Assembly Finishing Cost added this department:
Department Department Department Materials 1,186 = 380 x 3.12007
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Materials: Labor 840 = 350 x 2.80
Transferred out 5,400 5,000 4,800 Overhead 453 = 340 x 1.33333
Work in process, end 600 380 160 Total work in process 6,643
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EUP 6,000 5,380 4,960 Total costs accounted for P94,971
P1 difference due to rounding
Labor: Finishing Department
Transferred out 5,400 5,000 4,800 Cost of Production Report
s
Work in process, end 360 300 180 Month of June, 2010
EUP 5,760 5,300 4,980
as
Overhead: Transferred in from prior department 5,000
Transferred out 5,400 5,000 4,800
Work in process, end 360 340 160 Transferred out to finished goods 4,800
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EUP 5,760 5,340 4,960 Work in process, end 200
2. Trimming Department
Cost of Production Report Cost Schedule Total Cost EUP Unit Cost
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Month of June, 2010 Transferred in cost from prior dept. P 88,328 ÷ 5,000 = P17.66560
Quantity Schedule
Started in process
co rc
Units
6,000
Materials
Labor
Overhead
6,400
4,960
÷ 4,960 =
10,320
÷
÷
4,960 =
4,980 =
1.00
1.29032
2.07228
o. ou
Transferred out to next department 5,400 Total costs to be accounted for P110,008 P22.02820
Work in process, end 600
Total accounted for 6,000 Transferred out to finished goods P105,735 = 4,800 x P22.02920
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Cost Schedule Total Cost EUP Unit Cost Transferred in cost 3,533 = 200 x 17.66560
Materials P33,600 ÷ 6,000 = P 5.60 Cost added this department:
Labor 18,500 ÷ 5,760 = 3.21180 Materials 207 = 160 x 1.29032
Overhead 9,217 ÷ 5,760 = 1.60017 Labor 373 = 180 x 2.07228
Total costs to account for P61,317 P10.41197 Overhead 160 = 160 z 1.00
Total work in process 4,273
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Transferred out to next department P56,225 = 5,400 x P10.41197 Total costs accounted for P110,008
Materials 3,360 = 600 x 5.60
Labor 1,156 = 360 x 3.21180 3a. Work in process – Trimming Department 61,317
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Overhead 576 = 360 x 1.60017 Work in process – Assembly Department 38,746

Total work in process 5,092 Work in process – Finishing Department 21,680
Total costs accounted for P61,317 Materials 56,786
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Factory payroll 43,660

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Factory overhead control 21,297

Assembly Department To record manufacturing costs.
Work in process – Assembly Department
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Month of June, 2010 3b. 56,225

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Work in process – Trimming Department 56,225
To record transfer of goods from Trimming to
Assembly Department.
3c. Work in process – Finishing Department 88,328

Work in process – Assembly Department 88,328
To record transfer of goods from Assembly
To Finishing Department.
3c. Finished goods I 105,735

Work in process – Finishing Department 105,735
To record completion of finished goods.
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1
CHAPTER 11
Answers to Multiple Choice – Theoretical
1. b 5. C 9. c
2. d 6. C 10. A
3. d 7. D 11. A
4. b 8. D 12. B
Solutions to Multiple Choice – Computational
1. (c)
Materials:
Units transferred out (100%) 255,000
Units in process, April 30 (100%) 25,000
EUP 280,000
Conversion Costs:
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
Unit cost – Materials:

Cost last month (BWIP) P12,800
Cost this month (current cost) 69,700
Total P82,500
Divided by EUP ÷ 99,000
Unit cost P 0.833
3. (b)
Equivalent Units of Production – Materials

Units in process, July 31 (100%) 12,000
EUP 56,000
Unit cost – Materials:

Cost last month (BWIP) P 3,000
Cost this month 25,560
Total P28,560
Unit cost P 0.51
Work in process, July 31: (12,000 x P0.51) P 6,120

2
4. (b)
Transferred in costs (4,000 x P50 P200,000

Conversion costs: (4,000 x 40%) x P30 48,000
Cost of work in process, March 31 P248,000
5. (a)
Units completed (100%) 20,000

Units in process, end: (8,000 x 75%) 6,000
EUP – conversion costs 26,000
6. (a)

Materials:
Units in process, May 31: (100%) 8,000
EUP 20,000
Conversion costs:
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
Cost of units completed and transferred out: (12,000 x P2.80) P33,600

3
7. (d)
Equivalent production for labor:

Units transferred out to next department 7,200
Units in process, end; (1,400 x 30%) 420
EUP 7,620
Unit cost for labor:

BWIP P 2,880
Current cost 91,227
Total P94,107
Unit cost P 12.35
Units transferred out: (7,200 x P12.35) P88,920
8. (b)
Work in process, end: (420 x P12.35) P 5,187
9. (a)
Equivalent production for materials:

Units in process, end (300 x60%) 180
EUP 6,880
Material unit cost:

BWIP P10,000
Current cost 63,272
Total material cost P73,272
Unit cost P 10.65
Units transferred out: (6,700 x P10.65) P71,335
Units in process, end: (180 x P10.65) P 1,917
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
4
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
Total conversion costs P 148,304
EUP (per #10) ÷ 496
Unit cost P 299
Total unit cost P 997
Units completed: (460 x P997) P458,620

Materials: (72 x P698) P 50,256
Conversion cost: (36 x P299) 10,764
Total work in process P 61,020
12. (a)

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
Total conversion costs P441,000
EUP ÷ 42,000
Unit conversion cost P 10.5
5
13. (a)
Units completed: (34,000 x P17.30) P588,200

Materials: (16,000 x P6.8) P108,800
Conversion costs: (8,000 x P10.5) 84,000
Total work in process P192,800
14. (a)

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
Total P127,200
EUP: (40 + 80) ÷ 120
Unit cost P 1,060
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
Units in ending WIP:

Transferred in cost; (30 x P1,060) P 31,800
Costs added: CC (15 x P645) 9,675
Total work in process P 41,475
6
16. (a)

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
17. (a)
Units completed: (90 x P141,500) P12,735,000
Units in process, ending:

Materials: (10 x P98,000) P 980,000
Conversion costs: (7 x P43,500) 304,500
Total work in process, ending P 1,284,500
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
Units completed (7,000)
Units still in process 1,300
7
19. (a)

Materials:
Work in process, June 30 20,000
EUP 70,000
Conversion Costs:
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
Labor cost:
BWIP P 53,750
Total P 870,000
EUP ÷ 58,000
Overhead: (P15 x 70%) P 10.50
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
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
8
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)

Materials:
Ending work in process: (10,000 – 8,000) 100% 2,000
EUP 10,000
Conversion costs:
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
Costs of units transferred out to next dept.: (8,000 x P4.10) P32,800
25. (d)
Materials: (2,000 x P1.50) P3,000

Total work in process P6,640
26. (a)
Equivalent Units of Production Materials CC

Transferred out 85,000 85,000
EUP 90,000 88,000
Unit Costs Materials CC

Beginning work in process P 30,000 P 16,000
Current costs 88,000 50,000
Total costs P118,000 P 66,000
EUP ÷ 90,000 ÷ 88,000
Unit costs P 1.31 P 0.75
Transferred Out:
Materials: (85,000 x P1.31) P111,350
27. (d) (10,000 + 80,000)

9
28. (c)

Completed production 184,000 184,000
Ending work in process 1 43,200 (90%) 9,200 (40%)
EUP 227,200 203,200

Total costs P522,560 P609,600
EUP ÷227,200 ÷203,200
29. (d)

Materials: (43,200 x P2.3) P 99,360
Total costs of EWIP P156,960
30. (c)

Completed and transferred out 92,000 92,000
EUP 113,600 101,600

Total costs P522,560 P 609,600
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
10
33. (a)

Materials:
Ending work in process (100%) 10,000
EUP 39,000
Unit material cost:

BWIP P 267
Current costs 1,683
Total material cost P 2,950
EUP ÷ 39,000
34. (b)

Direct labor:
Ending work in process (10,000 x 75%) 7,500
EUP 36,500
Direct labor unit cost:

BWIP P1,495.20
Current costs 7,994.80
Total conversion costs P9,490.00
EUP ÷ 36,000
Direct labor unit cost P 0.26
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
11
Solutions to Problems
Problem 11-1
1. Equivalent Units of Production:
Materials:
Units in process, end: (100%) 12,000
EUP 85,000
Conversion costs:
Units in process, end: (12,000 x 2/3) 8,000
EUP 81,000
2. Refining Department
Month of January, 2010

Beginning work in process 10,000
Started in process 75,000
Units to account for 85.000

Total units accounted for 85,000

Materials:
BWIP P 64,000
Total 680,000 ÷ 85,000 = P 8.00
Conversion costs:
BWIP 39,900
Total costs 440,620 ÷ 81,000 = 5.44
Total costs to account for 1,120,620 P13.44
Transferred out 981,120 = 73,000 x P13.44

Materials 96,000 = 12,000 x 8.00
Conversion costs 43,520 = 8,000 x 5.44
Total EWIP 139,500
Total costs accounted for P1,120,620
12
Problem 11-2
1. Equivalent Units of Production

Materials:
Transferred out to next department 6,500
Ending work in process (100%) 500
EUP 7,000
Labor:
EUP 6,625
Overhead:
Ending wok in process (500 x 40$) 200
EUP 6,700
2. Processing Department
Month of April
Transferred in 6,000
Total to account for 7,000

Ending work in process 500

Cost from prior department:
BWIP – Last month P 120,000 = 1,000
Transferred in – This month 732,000 = 6,000
Total transferred in costs 852,000 ÷ 7,000 = P121.714
Cost in this department:
Materials:
BWIP 24,000
Current month 90,000
Total materials 114,000 ÷ 7,000 = 16.286
Labor:
BWIP 25,060
Total labor cost 132,500 ÷ 6,625 = 20.00
Overhead:
BWIP 6,320
Total overhead cost 93,260 ÷ 6,700 = 13.919
Total costs to account for P 1,191,760 P171.919
Transferred out P 1,117,476* = 6,500 x P171.919

Cost from prior department 60,857 = 500 x 121.714
Costs this department:
Materials 8,143 = 500 x 16.286
Labor 2,500 = 125 x 20.0
Overhead 2,784 = 200 x 13.919
Total EWIP 74,284
Total costs accounted for P 1,191,760
*adjusted P1.00 for rounding
13
Problem 11-3
Ace Department – First Department

Equivalent Units of Production
Month of June, 2010
Materials:
EUP 114,000
Conversion costs:
Ending work in process, (8,000 units x 70%) 5,600
EUP 111,600
Ace Company – First Department

Month of June 2010



Materials:
BWIP P 80,000
Total materials 912,000 ÷ 114,000 = P 8.00
Conversion Cost:
BWIP 54,000
Total CC 545,724 ÷ 111,600 = 4.89
Total costs to account for P1,457,724 P12.89
Transferred out to next department P1,366,339* = 106,000 x P12.89

Materials 64,000 = 8,000 x 8.00
CC 27,384 = 5,600 x 4.89
Total EWIP 91,385
14
Problem 11-4
1. Tan Corporation – Shaping Department

Month of October 2010
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
2. Tan Corporation – Shaping Department

Month of October 2010

Units to account for 10,500


BWIP P 62,000 = 3,000
Current month 253,000 = 7,500
Total transferred in cost 315,000 ÷ 10,500 = P30.00
Materials: BWIP 31,200
This month 82,800
Total material cost 114,000 ÷ 10,000 = 11.40
CC: BWIP 52,700
This month 226,600
Total CC 279,300 ÷ 9,500 = 29.40
Total costs to account for P708,300 P70.80
Transferred out P601,800 = 8,500 x P70.80

Cost from prior department 60,000 = 2,000 x 30.00
Materials 17,100 = 1,500 x 11.40
CC 29,400 = 1,000 x 29.40
Total costs accounted for P708,300
3. Work in process – Finishing Department 601,800

Work in process – Shaping Department 601,800
To record cost of units transferred to Finishing Department.
15
Problem 11-5
1. Assembling Department
Computation of Equivalent Units of Production
Month of June 2010
Materials:
Completed and transferred out 8,000
EUP 11,600
Labor:
EUP 10,800
Overhead:
EUP 9,400
2. Assembling Department
Month of June 2010


Cost Schedule Total cost EUP Unit Cost

BWIP P 32,000 = 2,000
Cost this month 160,000 = 10,000
Total transferred in cost 192,000 ÷ 12,000 = P16.00
This month 96,000
Labor: BWIP 7,200
This month 36,000
Total labor cost 43.200 ÷ 10,800 = 4.00
Overhead: BWIP 5,500
This month 18,000
Total overhead cost 23,500 ÷ 9,400 = 2.50
Completed and transferred out P260,000 = 8,000 x P32.50

Cost from preceding department 64,000 = 4,000 x 16,00
Materials 36,000 = 3,600 x 10.00
Labor 11,200 = 2,800 x 4.00
Overhead 3,500 = 1,400 x 2.50
Total ending work in process 114,700
16
Problem 11-6
1. Mixing Department
Month of May 2010
Direct materials:
Transferred out to Bottling Department 75,000
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
Month of May 2010



Direct materials:
BWIP P 1,680
This month 18,480
Total material cost 20,160 ÷ 84,000 = P0.24
Conversion costs:
BWIP 4,020
This month 32,160
Total conversion costs 36,180 ÷ 80,000 = 0.45
Transferred out to next department P51,750 = 75,000 x P0.69

Direct materials 2,160 = 9,000 x 0.24
3. Work in process –Bottling Department 51,750

Work in process – Mixing Department 51,750
To record cost units finished transferred out.
17
Problem 11-6 (continued):
4. Bottling Department
Month of May 2010
Direct materials:
Ending work in process - 0 -
EUP 68,000
Conversion costs;
EUP 76,000
Bottling Department
Month of May 2010

Transferred out finished goods 68,000


Cost from prior department
BWIP P 6,350 = 8,000
This month 51,750 = 75,000
Total transferred in costs 58,100 ÷ 83,000 = P0.70
Conversion costs:
BWIP 2,220
This month 25,900
Total conversion cost 28,120 ÷ 76,000 = 0.37
Transferred out to finished goods P72,760 = 68,000 x P1.07

5. Finished goods inventory 72,760

Work in process – Bottling Department 72,760
To record cost of finished goods.
18
Problem 11-7

Dept. 1 Dept. 2
Materials:
Ending work in process (100%) 10,000 9,000
EUP 55,000 52,000
Conversion costs:
Ending work in process (75%; 50%) 7,500 4,500
EUP 52,500 47,500
2. Department 1
Month of April 2010


Cost Schedule Total Costs EUP Unit Costs

Materials:
BWIP P 12,000
This month 65,000
Total material cost 77,000 ÷ 55,000 = P 1.40
Conversion costs:
BWIP 18,800
This month 145,000
Total conversion costs 163,800 ÷ 52,500 = 3.12
Total costs to account for P240,800 P 4.52
Transferred out to next department P203,400 = 45,000 x P 4.52

Materials 14,000 = 10,000 x 1.40
Total costs to account for P240,800
19
Problem 11-7 (continued)
Department 2
Month of April 2010



Cost from preceding department:
BWIP P 28,000 = 7,000
This month 203,400 = 45,000
Total transferred in costs 231,400 ÷ 52,000 = P 4.45
This month 45,000
CC : BWIP 20,625
This month 110,000
Total CC 130,625 ÷ 47,500 = 2.75
Total costs to account for P421,825 P 8.35
Transferred out to finished goods P359,050 = 43,000 x P 8.35

Materials 10,350 = 9,000 x 1.15
20
Problem 11-8
1. Equivalent Units of Production Blending Finishing

Department Department
Materials:
Ending work in process: 100%; 85% 320 238
EUP 2,500 2,238
Conversion costs;
Ending work in process: 25%; 85% 80 238
EUP 2,260 2,238
2. Orange Company
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

Ending work in process 320 280
Total accounted 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
Materials: BWIP 8,000 1,641
This month 100,000 42,000
Total material costs 108,000 43.20 43,641 19.50
C. Costs: BWIP 47,215 1,840

This month 207,600 73,200
Total conversion costs 254,815 112.75 75,040 33.53
Total costs to account for P362,815 P155.95 P473,840 P208.80
Transferred out P339,971 P155.95 417,603* P208.80

Transferred in from prior department - - 43,616 155.77
Materials 13,824 43.20 4,641 19.50
Conversion costs 9,020 112.75 7.980 33.53
Total work in process 22,844 56,237
Total costs accounted for P362,815 P473,840
*P3 difference due to rounding

21
Problem 11-9
a. Striping Department:
Beginning work in process inventory P 20,000

Current costs:
DM 90,000
DL 80,000
Overhead (P80,000 x 80%) 64,000
Total P254,000
Less ending work in process inventory 17,000
Costs transferred to Adhesion P237,000
b. Adhesion Department:
Let CC = conversion costs

BWIP + TI + DM + CC - To = EWIP
P70,000 + P237,000 + P22,600 + CC - P480,000 = P20,600
CC - P150,000 = P20,600
CC = P171,000
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
BWIP + TI + DM + DL + OH - CGM = P40,000

P150,000 + P480,000 + DM + P112,500 + P90,000 - P880,000 = P40,000
DM - P47,500 = P40,000
DM = P87,500
d. Work in process inventory – Adhesion 237,000

Work in process inventory – Striping 237,000
Work in process inventory – Packaging 480,000

Work in process inventory – Adhesion 480,000
Finished goods inventory 880,000

Work in process inventory – Packaging 880,000
Cost of goods sold 720,000

Finished goods inventory 720,000
1
CHAPTER 12
Answers to Multiple Choice - Theoretical
1. a 3. a 5. b
2. c 4. b 6. a
7. a
Solutions to Multiple Choice – Computational
1. (b)
Units completed:
From BWIP: (50% x 100) 50
From started in process (100%) 300 350
Work in process, end: (75% x 200) 150
EUP 500
2. (d)
Unit material cost:

Material cost this month P720,000
Divided by EUP ÷ 500
Unit cost P 1,400
Ending work in process: (P1,440 x 150) P216,000
3. (a)
Equivalent unit of production – Labor

Transferred out:
From BWIP: (60% x 1,000) 600
From transferred in 26,000 26,600
Ending work in process: (70% x 4,000) 2,800
EUP 29,400
Unit labor cost:

Labor cost this month P238,140
Unit labor cost P 8.10
Transferred out:
From BWIP:
Labor cost last month P 3,600
Labor cost this month (600 x P8.10) 4,860 P 8,460
From transferred in; (26,000 x P8.10) 210,600
Overhead cost of units transferred out P219,060
2
4. (a)
Equivalent units of production – Overhead:

Transferred out:
From BWIP (3,300 x 2/3) 2,200
From transferred in 13,200 15,400
Ending work in process (2,000 x ¾) 1,500
EUP 16,900
Unit overhead cost:

Overhead cost incurred this month P38,025
Divided by EUP ÷16,900
Unit overhead cost P 2.25
Transferred out:
From BWIP:
Overhead cost last month P 2,332
Overhead cost this month (2,200 x P2.25) 4,950 P 7,282
From transferred in (13,200 x P2.25) 29,700
Overhead cost of units transferred out P36,982
5. (b)
Transferred out:
From BWIP (40% x 16,000) 6,400
From SIP 92,000 – 16,000) 76,000 82,400
EUP – materials 104,000
6. (d)
Transferred out:
From BWIP (80% x 16,000) 12,800
From SIP 76,000 88,800
EUP – conversion cost 98,400
7. (b)
Material cost incurred this month P468,000

8. (b)
Conversion cost incurred this month P574,040

9. (a)
Materials (21,600 x P4.50) P 97,200

Conversion cost (9,600 x P5.83) 55,968
Cost of EWIP P153,168
3
10. (a)

Materials:
Transferred out:
From BWIP (5,000 x 0%) -0-
From SIP (91,400 – 5,000) 86,400 86,400
EUP 90,400
Conversion cost:
Transferred out:
From BWIP (5,000 x 60%) 3,000
From SIP 86,400 89,400
EUP 92,200
Unit costs:
Materials: (P433,920 / 90,400) P 4.80
Conversion cost: (P115,250 / 92,200) 1,25
Transferred out:
From BWIP:
Cost last month P24,875
Cost this month:
Conversion cost (3,000 x P1,25) 3,750 P 28,625
From SIP (86,400 x P6.05) 522,720
Total cost transferred out P551,345
11. (a)
Material costs: (4,000 x P4.80) P19,200

Cost of ending work in process P22,700
12. (a)
Gallons transferred out 242,000

Gallons in ending inventory 23,500
Gallons in beginning inventory (36,000)
Gallons started in April 229,500
4
13. (a)

Material:
Transferred out:
From BWIP: (0%) - 0 -
From SIP: (242,000 – 36,000) 206,000 206,000
EUP 229.500
Labor:
Transferred out:
From BWIP: (36,000 x 65%) 23,400
From SIP: (100%) 206,000 229,400
EUP 235,275
Overhead:
Transferred out:
From BWIP: (36,000 x 40%) 14,400
From SIP 206,000 220,400
EUP 227.450
Unit costs:
Material costs: (P1,131,435 / 229,500) P 4.93
Labor costs: (P451,728 / 235,275) 1.92
Overhead costs: (P773,330 / 227,450) 3.40
Completed BWIP
Cost this month:
Materials: -0-
Labor: (23,400 x P1.92) 44,928
Overhead: (14,400 x P3.40) 48,960 93,888
Total costs of completed BWIP P370,288
14. (a)
Units completed:
From BWIP (#13) P 370,288
From SIP: (206,000 x P10.25) 2,111,500
Total costs of units completed P2,481,788
15. (a)
Total costs of units completed (#14) P2,481,788

Divided by total units completed ÷ 242,000
Average unit cost P 10.26
5
16. (a)
Materials: (23,500 x P4.93) P115,855

Labor: (5,875 x P1.92) 11,280
Overhead: (7,050 x P3.40) 23,970
Total cost of EWIP P151,105
17. (b)
Equivalent Units of Production – Materials

Units completed:
From BWIP: (20 x 0%) 0
From SIP: (90 – 20) 100% 70 70
Ending work in process: (10 x 100%) 10
EUP 80
Unit material cost:

Material cost incurred this month P8,000,000
18. (a)
Equivalent Units of Production – Conversion Cost:

Units completed:
From BWIP: (20 x 40%) 8
From SIP 70 78
EUP 85
Unit conversion cost:

Conversion costs incurred this month P3,740,000
Unit conversion cost P 44,000
19. (a)
Cost incurred last month P2,280,000

Cost incurred this month:
Conversion costs: (8 x P44,000) 352,000
Total costs of completed BWIP P2,632,000
20. (a)
Transferred out:
From BWIP #(19) P 2,632,000
From SIP; (70 x P144,000) 10,080,000
Total cost of units completed P12,712,000
Divided by total units completed ÷ 90
Average unit cost P 144,244
21. (a) , See #20 above.

6
22. (a)
Materials: (10 x P100,000) P1,000,000

Conversion cost: (7 x P44,000) 308,000
Cost of EWIP inventory P1,208,000
23. (a)
Equivalent Units of Production - Materials

Units completed:
From BWIP: (10,000 x 0%) 0
From SIP: (34,000 – 10,000) 100% 24,000 24,000
EUP – Materials 40,000
Unit material cost: (P280,000 / 40,000) P 7.00
24. (a)
Equivalent Units of Production – Conversion Costs:

Units completed:
From BWIP: (10,000 x 30%) 3,000
From SIP 24,000 27,000
EUP – Conversion costs 35,000
Unit conversion costs: (P371,000 / 35,000) P10.60
25. (d)

Cost added this month:
Material cost P -0-
Conversion costs: (3,000 x P10.60) 31,800 31,800
Total cost of competed BWIP P91,800
26. (b)
Units Transferred out:

From BWIP (#25) P 91,800
From SIP: (24,000 x P17.60) 422,400
Total costs of units transferred out P514,200
Divided by units transferred out ÷ 34,000
Average unit cost of units transferred out P 15.12
27. (a)
Material cost: (16,000 x P7) P112,000

Total costs of EWIP inventory P196,800
7
28. (a)
Transferred in costs this month P85,600

Divided by units transferred in this month ÷ 80
Unit transferred in cost P 1,070
29. (a)

Materials:
Competed and transferred out:
From BWIP: (40 x 100%) 40
From transferred in: (90 – 40) 100% 50 90
EUP 90
Conversion costs::
Completed and transferred out:
From BWIP: (40 x 25%) 10
From transferred in 50 60
EUP 75
Unit costs:
Materials: (P36,000 / 90) P400
Conversion costs: (49,725 / 75) P663
30. (a)
Units completed and transferred out:

From BWIP:
Cost last month P57.200
Materials: (40 x P400) 16,000
CC: (10 x P663) 6,630 P 79,830
From transferred in: (P1.070 + P400 + P663) x 50 106,650
Total costs of units completed and transferred out P186,480

Transferred in costs: (30 x P1,070) P 32,100
Costs added this department:
Conversion cost: (15 x P663) 9,945
Total costs of EWIP P 42,045
31. (d)
Equivalent Units of Production – Materials:

Units completed:
From BWIP (150 x 100%) 150
From Transferred In: (525 – 150) 375 525
EUP – Materials 525
8
No. 31 (continued)
Equivalent Units of production – Conversion Costs:

Units completed:
From BWIP: (150 x 30%) 45
From Transferred In 375 420
EUP – CC 465
32. (a)
Material cost incurred this month P971,250

33. (a)
Conversion costs incurred this month P395,250

Unit conversion costs P 850
34. (a)

Cost this month:
Materials: (150 x 1,850) P277.500
Conversion costs: (45 x P850) 38,250 315,750
Total costs of completed BWIP P643,715
35. (a)
Transferred out to finished goods:

From BWIP ( #34) P 643,715
From Transferred In: (P1,770* + P1,850 + P850) x 375 1,676,250
Total cost of units transferred out to finished goods P2,319,965
* Unit transferred in cost: (P796,500 / 450) = P1,770
36. (a)
Transferred in costs from prior department: (75 x P1,770) P 132,750

Cost added in this department:
Conversion costs: (45 x P850) 38,250
Total costs of ending work in process P 171,000
37.
Transferred Direct Conversion

Equivalent Units of Production In Costs Materials Costs
Cost added in current month P234,000 P228,000 P228,800
Divided by cost per EUP ÷ P 26 ÷ P12 ÷ 20.80
EUP 9,000 19,000 11,000
9
Number 37 (continued):
Transferred In costs:
Total EUP 9,000
Started and completed (19,000 - 15,000) (4,000)
EUP – Transferred in 5,000
Direct materials:
Total EUP 19,000
Transferred out
From BWIP (15,000 x 100%) 15,000
From started and completed 4,000 (19,000)
EUP – EWIP -0-
Conversion Costs:
Total EUP 11,000
Transferred out:
From BWIP (15,000 x 40%) 6,000
From started and completed 4,000 (10,000)
EUP – EWIP 1,000
Percentage of Completion:
Transferred in costs: (5,000 / 5,000) 100%
Direct materials: ( 0 / 5,000) 0%
Conversion costs: (1,000 / 5,000) 20%
38. (a)
Transferred out:
From BWIP:
Cost last month P 540,000
Materials (15,000 x P12) 180,000
CC: (6,000 x P20.80) 124,800
Total costs of BWIP 844,000
From started and completed (4,000 x P58.80) 235,200
Total costs of units transferred out P1,080,000
Ending Work In Process:

Transferred in costs from prior department (5,000 x P26) P 130,000
10
Problem 12-1

Materials:
From BWIP: (300 x 0%) -0-
From SIP: (2,000 – 300) 100% 1,700 1,700
EUP 2,200
Conversion Costs:
From BWIP: (300 x 60%) 180
From SIP 1,700 1,880
EUP 2,005
Unit Costs:
Materials: (P699,600 / 2,200) P318
Conversion costs: (P425,060 / 2005) 212
Total unit costs P530
Total costs – Forming Department:

BWIP P 96,250
Cost added during April:
Materials P699,600
Conversion costs 425,060 1,124,660
Total costs P1,035,410
Assignment of Costs:
From BWIP:
CC: (180 x P212) 38,160 P 124,410
From SIP: (1,700 x P5.30) 901,000
Total costs completed and transferred out P1,035,410

Materials: (500 x P318) P 159,000
2. Work in process – Forming Department 1,124,660

Account payable (materials) 699,600
Various accounts (conversion costs) 425,060
To record direct materials and conversion costs incurred
And used in production during April.
Work in process – Finishing Department 1,035,410

Work in process – Forming Department 1,035,410
To record costs of units transferred to Finishing Department.
11
Problem 12 -2

Materials:
From BWIP: (500 x 100%) 500
From SIP: (2,100 – 500) 100% 1,600 2,100
Ending work in process: (400 x 0%) -0–
EUP 2,100
Conversion costs:
From BWIP: (500 x 40%) 200
From SIP 1,600 1,800
EUP 1,920
Unit Costs:
Transferred in costs: (P1,035,410 / 2,000) P517.705
Materials costs: (P231,000 / 2,100) 110.00
Total Costs – Finishing Department:

Work in process, April 1 P 247,700
Transferred In costs this month 1,035,410
Materials P231,000
Conversion costs 384,000 615,000
Total costs P1,898,110
Assignment of costs:
From BWIP:
Materials: (500 x P110) 55,000
CC: (200 x 200) 40,000 P 342,700
From SIP: (1,600 x P827.705) 1,324,328
Total costs of units completed and transferred out P1,667,028
Ending Work in Process:

Transferred In costs: (400 x P517.705) P 207,082
Cost added: Conversion costs: (120 x P200) 24,000
2. Work in process – Finishing Department 1,035,410

Work in process – Forming Department 1,035,410
To record transferred in costs from Forming Department.
Finished goods 1,667,028

Work in process – Finishing Department 1,667,028
To record cost units transferred out to finished goods.
12
Problem 12-3
Materials:
From BWIP: (4,000 x 0%) -0-
From SIP: (50,000 – 4,000) 100% 46,000 46,000
EUP 52,000
Conversion Costs:
From BWIP: (4,000 x 40%) 1,600
From SIP 46,000 47,600
EUP 52,100
2. Cooking Department
Month of July 2010


From BWIP 4,000
From SIP 46,000 50,000
Cost Schedule Total Cost EUP Unit Costs

BWIP P 84,448
Materials 595,920 ÷ 52,000 = P11.46
Completed and transferred Out:

From BWIP:
Conversion costs 26,000 = 1,600 x P16.52
Total BWIP 110,880
From SIP 1,287,080 = 4,600 x 27.98
Total costs transferred out P1,297,960

Materials P 68,760 = 6,000 x 11.46
Total EWIP 143,100
13
Problem 12-4
Materials:
Transferred out:
From BWIP: (8,000 x 20%) 1,600
From SIP: (44,000 – 8,000) 36,000 37,600
EUP 40,400
Labor:
Transferred out:
From BWIP: (8,000 c 60%) 4,800
From SIP 36,000 40,800
EUP 42,800
Overhead:
Transferred out:
From BWIP: (8,000 x 70%) 5,600
From SIP 36,000 41,600
EUP 43,200
2. Curing Department
Month of May 2010

Transferred In from prior department 40,000
Transferred out:
From BWIP 8,000
From Transferred In 36,000 44,000
14

Transferred In cost - current month 640,000 ÷ 40,000 = P16.00
Materials 323,200 ÷ 40,400 = 8.00
Labor 171,200 ÷ 42,800 = 4.00
Overhead 86,400 ÷ 43,200 = 2.00
Costs accounted for as follows:

Transferred out:
From BWIP:
Materials 12,800 = 1,600 x P 8.00
Labor 19,200 = 4,800 x 4.00
Overhead 11,200 = 5,600 x 2.00
Total BWIP 245,720
From Transferred In 1,080,000 = 36,000 x 30.00
Total costs transferred out 1,325,720
Ending Work in process:

Transferred in costs 64,000 = 4,000 x 16.00
Cost added:
Materials 22,400 = 2,800 x 8.00
Labor 8,000 = 2,000 x 4.00
Overhead 3,200 = 1,600 x 2.00
Total EWIP 97,600
Problem 12-5

15
Materials:
From BWIP: (1,000 x 10%) 100
From SIP: (2,800 – 1,000) 100% 1,800 1,900
Ending work in process: (1,200 x 50%) 600
EUP 2,500
Conversion costs:
From BWIP: (1,000 x 20%) 200
From SIP 1,800 2,000
Ending work in process: (1,200 x 40%) 480
EUP 2,480
2. Assembly Department:
Month of November 2010

Total to be accounted for 4,000

From BWIP 1,000
From SIP 1,800 2,800

Costs from prior department 292,500 ÷ 3,000 = P 97.50
Costs added this department:
Materials 133,750 ÷ 2,500 = 53.50
Total to accounted for P1,086,130 P257.00
From BWIP:
Current costs:
Materials 5,350 = 100 x 53.50
CC 21,200 = 200 x 106.00
Total BWIP 423,550
From SIP 462,600 = 1,800 x 257.00
Total costs transferred out P 886,150
Materials 32,100 = 600 x 53.50
Conversion cost 50,880 = 480 x 106.00
Total BWIP 199,980
Total accounted for P1,086,130
Problem 12-6

16
Department 1 Department 2
Materials:
Transferred out:
From BWIP: -0- -0-
From SIP 40,000 36,000
EUP 50,000 45,000
Conversion costs:
Transferred out:
From BWIP 1,750 (35%) 4,200 (60%)
From WIP 40,000 36,000
EUP 49,250 44,700
2. Department 1
For the Month of May 2010

Transferred out to Department 2:

From BWIP 5,000
From SIP 40,000

Direct materials 65,000 ÷ 50,000 = P1.30
Total to account for P240,300 P4.20

Transferred out to Department2:
From BWIP:
Cost added:
CC 5,075 = 1,750 x P2.90
Total BWIP 37,550
From SIP 168,000 = 40,000 x 4.20
Total costs transferred out 205,550

Materials 13,000 = 10,000 x 1.30
Total costs of BWIP 34,750
Department 2
17

Month of May 2010


From BWIP 7,000
From TI 36,000 43,000
Cost Schedule Total costs EUP Unit Costs

Cost from prior department 205,550 ÷ 45,000 = P4.56778
Direct materials 45,000 ÷ 45,000 = 1.00
Total to account for P426,072 P8.02778
Cost accounted for:

From BWIP:
CC 10,332 = 4,200 x P2.46
Total BWIP 75,892
From transferred in 289,000 = 36,000 x 8.02778
Total costs transferred to FG P364,892

Transferred In P 41,110 = 9,000 x 4.56778
Cost added:
Materials 9,000 = 9,000 x 1.00
Total EWIP 61,180
Problem 12-7
18
Cutting Department Units Materials Conversion

Beginning WIP 1,300
Transferred Out:
From BWIP 1,200 260 325
From SIP 3,700 3,700 3,700
Ending WIP 1,100 440 220
EUP 6,100 4,400 4,245
Coating Department Units Materials Conversion

Beginning WIP 900
Transferred out:
From BWIP 900 900 360
From SIP 3,600 3,600 3,600
Ending WIP 1,400 -0- 560
EUP 5,900 4,500 4,520
2. Cost per equivalent unit:
Cutting Department Material Conversion

Current costs P35,200 P25,470
Divided by EUP ÷ 4,400 ÷ 4,245
Unit costs P 8 P 5
3. Cost transferred out and EWIP inventory of Cutting Department:
Cost of BWIP P16,065

Cost to complete BWIP:
Material: (260 x P8) P 2,080
Conversion: (325 x P5) 1,625
Started and completed : (3,700 x P13) 48,100 51,805
Total costs transferred out P67,870
Ending WIP:
Materials: (440 x P8) P3,520
Total costs P72,490
4. Coating Department Transferred In Material Conversion

19
Current costs P67,870 P4,950 P11,300

Divided by EUP ÷ 5,000 ÷4,500 ÷ 4,520
Unit cost P13.574 P 1.10 P 2.50
Cost Assignment:
Transferred out:
From BWIP:
Material: (900 x P1.10) 990
Conversion: (360 x P2.50) 900 P15,404
From SIP: (3,600 x P17.17) 61,812
Total cost transferred out P77,216
Ending WIP:
Transferred in: (1,400 x P13.574) P19,004
Conversion cost: (560 x P2.50) 1,400 20,404
5. Since there was no beginning or ending FG inventory, cost of goods sold is equal to
cost of goods manufactured (transferred out to FG) for the period. Thus COGS =
P77,216
Problem 12-8
1. Equivalent Units of Production – Molding Department:

20
Materials:
Transferred out:
From BWIP: (700 x 0%) -0-
From SIP: 3,400 3,400
Ending WIP: (500 x 100%) 500
EUP 3,900
Labor:
Transferred out:
From BWIP: (700 x 45%) 315
From SIP 3,400 3,715
Ending WIP: (500 x 60%) 300
EUP 4,015
Overhead:
Transferred out:
From BWIP: (700 x 30%) 210
From SIP: 3,400 3,610
Ending WIP: (500 x 75%) 375
EUP 3,985
2. Equivalent Units of Production – Finishing Department:
Materials:
Transferred Out:
From BWIP: (420 x 50%) 210
From SIP 3,720 3,930
Ending WIP: (380 x 25%) 95
EUP 4,025
Labor:
Transferred Out:
From BWIP: (420 x 60%) 252
From SIP 3,720 3,972
Ending WIP: (380 x 25%) 95
EUP 4,067
Overhead:
Transferred Out:
From BWIP: (420 x 60%) 252
From SIP 3,720 3,972
Ending WIP: (380 x 25%) 95
EUP 4,067
2. Molding Department:
21

Month of June 2010

Beginning WIP 700
Transferred out:
From BWIP 700
From SIP 3,400 4,100
Ending WIP 500

Beginning WIP P11,918.20
Costs added in current month:
Materials 36,660.00 ÷ 3,900 = P 9.40
Labor 24,090.00 ÷ 4,015 = 6.00
Overhead 26,221.30 ÷ 3,985 = 6.58
Total cost to account for P98,889.50 P21.98
Transferred out:
From BWIP:
Cost in BWIP P11,918.20
Cost added in current month:
Labor 1,890.00 = 315 x P 6.00
Overhead 1,381.80 = 210 x 6.58
Total BWIP 15,190.00
From SIP 74,732.00 = 3,400 x 21.98
Total cost transferred out P89,922.00
Ending WIP
Materials 4,700.00 = 500 x 9.40
Labor 1,800.00 = 300 x 6.00
Overhead 2,467.50 = 375 x 6.58
Total Ending WIP 8,967.50
Total accounted for P98,889.50
4. Finishing Department
22
Month of June 2010

Beginning WIP 420
Transferred Out:
From BWIP 420
From TI 3,720 4,140
Ending WIP 380

Beginning WIP P 10,232.04
Transferred In costs this month 89,922.00 ÷ 4,100 = P21.93220
Material 4,025.00 ÷ 4,025 = 1.00
Labor 16,186.66 ÷ 4,067 = 3.98
Overhead 8,050.00 ÷ 4,067 = 1.97935
Total to account for P128,415.70 P28.89155
Transferred Out:
From BWIP:
Cost of BWIP P 10,232.04
Cost added in current month:
Material 210.00 = 210 x P 1.00
Labor 1,002.96 = 252 x 3.98
Overhead 498.80 = 252 x 1.97935
Total cost of BWIP 11,943.80
From Transferred In 107,476.57 = 3,720 x 28.89155
Total costs transferred to FG P119,420.32*
Ending WIP:
Transferred In P 8,334.24 = 380 x 21.93220
Cost added:
Material 95.00 = 95 x 1.00
Labor 378.10 = 95 x 3.98
Overhead 188.04 = 95 x 1.97935
Total cost of EWIP 8,995.38
Total accounted for P 128,415.70
*P5 difference due to rounding off

23
5. Work in process – Finishing Department 89,922.00

Work in process – Molding Department 89,922.00
To record cost of units transferred out from
Molding Department to Finishing Department.
Finished Goods Inventory 119,420.22

Work in process – Finishing Department 119,420.22
To record cost of finished goods.
1
CHAPTER 13
Answers to Multiple Choices – Theoretical
1. b 6. b
2. a 7. d
3. c 8. b
4. b 9. a
5. a 10. c
Solutions to Multiple Choices – Computational
1. (d)
Transferred Out to next department (100%) 55,000

Normal lost units (100%) 15,000
2. (a)
Transferred Out:
From BWIP: (30,000 x 40%) 12,000
From SIP: (55,000 – 30,000) 100% 25,000 37,000
Normal lost units (100%) 15,000
EUP – Conversion cost 69,500
3. (b)
Transferred Out:
From BWIP: (5,000 x 40%) 2,000
From TI: (12,000 – 5,000) 7,000 9,000
Normal lost units (2,000 x 75%) 1,500
4. (a)
Transferred Out 12,000

Normal lost units 1,500
5. (c)
Transferred In cost: (620 x P12.50) P 4,960.00

Materials: (620 x P8) 3,836.25
Conversion costs: (279 x P13.75) 7,750.00
Cost of lost units P16,546.25
2
6. (c)
Cost of normal lost units: (P32,850 x 800/1,200) P21,900
Allocated to Ending Work in Process: (P21,900 x 4,800/16,800) P6,257.14
7. (c)
EUP Actual Units Materials Conversion

Transferred Out 7,000 7,000 7,000
Ending work in process 2,000 2,000 1,000
Normal spoiled units 1,000 1,000 1,000
EUP 10,000 9,000
Unit costs:
Materials: (P30,000 / 10,000) P3.00
Cost of units transferred out: (7,000 x P8) P56,000
8. (c)
Transferred Out to next department (100%) 85,000

Normal lost units (10,000 x 100%) 10,000
9. (b)
Transferred Out to finished goods (100%) 33,000

Abnormal lost units: (2,000 x 100%) 2,000
10. (a)

11. (b)
Materials in BWIP P 68,000

Materials added during month 100,000
Total P168,000
3
12. (a)
Transferred Out to next department 9,600

Lost units: (600 x 100%) 600
EUP – Labor 10,280
13. (a)
Labor cost in BWIP P 15,000

Labor cost incurred during the month 365,360
Total labor costs P380,360
Unit labor cost P 37
14. (a)
Transferred Out to next department:

From BWIP: (400 x 50%) 200
From SIP: (9,600 – 400) 9,200 9,400
Lost units 600
EUP – Labor 10,080
15. (a)
Beginning WIP 3,000

Transferred In 15,000
Transferred Out (17,250)
Ending WIP ( 450)
Lost units 300
16. (a)
Beginning WIP 3,000

EUP-TI costs 18,000
17. (a)
TI costs last month in BWIP P 90,000

TI costs – current month 450,000
Total 540,000
Unit TI costs P 30
18. (a)
Beginning WIP 100

Transferred In this month 4,800
Lost units ( 95)
EUP – TI costs 4,805
4
19. (a)
TI costs last month in BWIP P 19,350

TI costs- current month 124,800
Total P144,150
Unit transferred in costs P 30
20. (a)
205 units x P30 = P6,150
21. (b)
Equivalent Units of Production – Materials:

Ending WIP (100%) 2,975
Abnormal lost units (100%) 25
Unit material costs: (P60,000 + P304,000) ÷ 13,000 P 28
22. (a)
25 units x P28 = P700
23. (a)
Beginning WIP 500

Units added 5,000
EUP 16,500
Or:
Transferred Out (100%) 15,500

Ending WIP (100%) 1,000
EUP – TI costs 16,500
24. (b)
Transferred In costs – BWIP P 33,000

Transferred In costs – Current month 165,000
Total TI costs P198,000
Unit TI costs P 12
25. (c)
1,000 units x P12 = P12,000

5
26. (c)

From BWIP: (500 x 0%) -0-
From TI: (2,200 – 500) 1,700 1,700
Ending WIP: (250 x 100%) 250
Normal lost units: (50 x 100%) 50
27. (c)
Materials added during the month P153,000

28. (a)
250 units x P76.50 = P19,125
29. (a)
Equivalent Units of Production Units Materials Conversion

Completed and transferred out 9,000 9,000 9,000
Ending WIP 2,000 2,000 600
Normal lost units 100 100 100
Abnormal lost units 50 50 50
EUP 11,150 9,750
Unit Costs:
Materials: (P14,230 + P121,180) ÷ 11,150 P12.1444
Conversion costs: (P11,100 + P277,500) ÷ 9,750 29.60
Total unit cost P41.7444
30. (d)
9,000 units x P41.7444 = P375,700
31. (c)
Materials: (2,000 x P12.1444) P24,289

Conversion costs: (600 x P29.60) 17,760
Costs of EWIP P42,049
32. (a)
50 units x P41.7444 = P2,087

6
33. (a)

Materials:
From BWIP: (1,000 x 0%) -0-
From SIP: (9,000 - 1,000) 8,000 8,000
Ending WIP: (2,000 x 100%) 2,000
Abnormal lost units: (50 x 100) 50
EUP 10,150
Conversion Costs:
From BWIP: (1,000 x 50%) 500
From SIP 8,000 8,500
Ending WIP: (2,000 x 30%) 600
Normal lost units 100
Abnormal lost units 50
EUP 9,250
34. (a)
Materials: (P121,180 / 10,150) P11.94

Total unit cost P41.94
35. (b)
Completed BWIP:
Cost added this month: Conversion costs: (500 x P30) 15,000
Total costs of completed BWIP 29,230
Completed SIP: (8,000 x P41.94) 3 35,520
Cost of normal lost units: (100 x P41.94) 4,194
Total costs of units completed and transferred out P368,944
36. (a)
Materials: (2,000 x P11.94) P23,880

Costs of EWIP P41,880
37. (a)
50 units x P41.94 = P2,097

7
38. (a)
Materials:
Transferred Out:
From BWIP: (7,500 x P0%) -0-
From SIP: (72,500 – 7,500) 100% 65,000 65,000
Ending WIP: (13,000 x 100%) 13,000
Normal lost units: (1,100 x 100%) 1,100
Abnormal lost units: (900 x 100%) 900
Conversion costs:
Transferred Out:
From BWIP: (7,500 x 60%) 4,500
From SIP 65,000 69,500
Ending WIP: (13,000 x 70%) 9,100
Normal lost units: (1,100 x 75%) 825
EUP – CC 80,100
39. (b)
Unit costs:
Materials: (P120,000 / 80,000) P1.50
From BWIP: Cost last month P 24,200
Cost added this month – CC: (4,500 x P4) 18,000
Total costs of completed BWIP 42,200
From SIP: (65,000 x P5.50) 357,500
Total cost of units completed 399,700
Cost of normal lost units:
Materials: (1,100 x P1.50) P1,650
Total costs of completed units after adjustment for lost units P404,650
Ending WIP
Materials: (13,000 x P1.50) P19,500
Conversion costs: (9,100 x P4) 36,400
Total costs of EWIP P55,900
40. (a)
Materials: (900 x P150) P 1,350

Cost of abnormal lost units P 4,050
8
41. (a)
Equivalent Units of production Units Materials Conversion

Transferred Out 72,500 72,500 72,500
Ending WIP 13,000 13,000 9,100
Normal lost units 1,100 1,100 825
Abnormal lost units 900 900 675
EUP 87,500 83,100
42. (c)
Unit costs:
Materials: (P10,400 + P120,000) = P130,000/ 87,500 P1.49029
Conversion costs: (P13,800 = P320,400) = P334,200 / 83,100 4.02166
Transferred Out: (72,500 x P5.51195) P399,616
Materials: (1,100 x P1.49029) P1,639
Conversion costs: (825 x P4.02166) 3,318 4,957
Total costs of units transferred out P404,573
Ending WIP:
Materials: (13,000 x P1.49029) P19,374
43. (b)
Materials: (900 x P1.49029) P 1,341

Conversion costs: (675 x P4.02166) 2,715
Cost of abnormal lost units P 4,056
44. (a)
Equivalent Units of Production Units DM CC

Completed 50,000 50,000 50,000
Ending WIP 20,000 20,000 19,000
Normal spoilage (70,000 x 10%) 7,000 0 5,600
Abnormal spoilage 3,000 0 2,400
EUP 70,000 77,000
45. (a)
Unit costs:
Transferred In costs: (82,900 + 647,500) ÷ 80,000 P 9.13
Materials: (P0 + P655,200) ÷ 70,000 9.36
Conversion cost: (P42,000 + P1,251,600) ÷ 77,000 16.80
9
Number 45 (continued)

Transferred In costs: (7,000 x P9.13) P 63,910
Cost of normal lost units P157,990
46. (d)

Completed and transferred out: (50,000 x P35.29) P1,764,500
Cost of normal lost units: (P157,990 x 50/70) 112,850
Adjusted cost of units completed and transferred out P1,877,350
47. (a)

Transferred In costs: (20,000 x P9.13) P182,600
Cost added:
Materials: (20,000 x P9.36) P187,200
Conversion costs: (19,000 x P16.80) 319,200 506,400
Cost of normal lost units: (P157,990 x 20/70) 45,140
48. (a)
Transferred In costs: (3,000 x P9.13) P27,390

Cost added:
Cost of abnormal lost units P67,710
10
Problem 13-1
1. Assembly Department
Month of May 1010
Materials:
Ending work in process: (100%) 810
Lost units 350
EUP 6,100
Labor:
Lost units 350
EUP 5,776
Overhead:
Lost units 350
EUP 5,938
11
Month of May 2010

Beginning WIP 200

Ending WIP 810
Lost units 350

Materials: Beginning WIP P 37,498 = 200
Total materials 884,500 ÷ 6,100 = P145.00
Labor: Beginning WIP 8,268
Total labor 181,944 ÷ 5,776 = 31.50
Overhead: Beginning WIP 22,764
Total overhead 433,474 ÷ 5,938 = 73.00
Costs accounted for:

Completed P1,232,530 = 4,940 x P249.50
Cost of lost units 87,325 = 350 x 249.50
Costs of units transferred out 1,319,855
Ending WIP:
Materials 117,450 = 810 x 145.00
Labor 15,309 = 486 x 31.50
Overhead 47,304 = 648 x 73.00
Total EWIP 180,063
12
Problem 13-2
Equivalent Units of Production – Average
Month of June 2010
Transferred In Costs:
Beginning work in process 500
EUP 14,800
Materials:
Transferred Out to finished goods 13,600
EUP 14,800
Conversion costs:
EUP 14,575
13
Month of June 2010



Beginning WIP P 43,540 = 500
Total Transferred In costs 795,944 ÷ 14,800 = P 53.78
Total materials 518,000 ÷ 14,800 = 35.00
CC: BWIP 78,350
Current month 1,350,000
Total CC 1,428,350 ÷ 14,575 = 98.00
Total costs this department 1,946,350
Costs Accounted For:

Transferred Out to finished goods:
Completed P2,540,208 = 13,600 x P186.78
Normal lost units 56,034 = 300 x 186.78
Total costs 2,596,242
Transferred In costs 48,402 = 900 x 53.78
Cost this department:
Materials 31,500 = 900 x 35.00
Conversion costs 66,150 = 675 x 98.00
Total EWIP 146,052
14
Problem 13-3
Month of July 2010
EUP 5,800
Materials:
EUP 5,710
Conversion costs:
Ending work in process: (450 x 331/3%) 150
EUP 5,500
15
Month of July 2010

Accounted for as follows:


Beginning WIP P 24,200
Total TI costs 226,200 ÷ 5,800 = P39.00
Cost this department:
Materials: Beginning WIP 12,200
Total materials 134,185 ÷ 5,710 = 23.50
CC: Beginning WIP 6,720
Total CC 158,400 ÷ 5,500 = 28.80
Total cost in this department P292,585

Completed P474,760 = 5,200 x P91.30
Cost of normal lost units 13,695 = 150 x 91.30
Total costs of TO 488,455
Transferred in costs 17,550 = 450 x 39.00
Materials 8,460 = 360 x 23.50
Total EWIP 30,330
16
Problem 13-4
Month of April 2010
Normal lost units ( 200)
EUP 37,600
Materials:
EUP 37,600
Conversion Costs:
EUP 36,400
17
Month of April 2010



Total TI costs 680,560 ÷ 37,600 = P18.10
Costs added in this department:
Total materials 526,400 ÷ 37,600 = 14.00
CC: BWIP 13,680
Total CC 953,680 ÷ 36,400 = 26.20
Total costs this department 1,480,080

Transferred Out to finished goods P2,011,350 = 34,500 x P58.30
Transferred In costs 54,300 = 3,000 x 18.10
Materials 42,000 = 3,000 x 14.00
Total EWIP 143,460
Abnormal lost units:
Materials 1,400 = 100 x 14.00
Total abnormal lost units 5,830
3. Finished goods 2,011,350

Loss from abnormal spoilage 5,830
Work in process 2,017,180
To record costs transferred to finished goods
and abnormal spoilage.
18
Problem 13-5
Month of March 2010
EUP 3,000
Materials and Overhead:

EUP 2,980
Labor:
EUP 2,970
19
Month of March 2010

Increase in units 300
Accounted for as follows:


Current Month 214,200
Total TI costs 225,000 ÷ 3,000 = P 75.00
Total materials 83,142 ÷ 2,980 = 27.90
Labor: BWIP 2,013
Total labor 68,013 ÷ 2,970 = 22.90
Overhead: BWIP 1,812
Total overhead 57,812 ÷ 2,980 = 19.40
Total costs in this department P208,967

Transferred Out to next department P421,080 = 2,900 x P145.20
Materials 2,232 = 80 x 27.90
Labor 1,603 = 70 x 22.90
Overhead 1,552 = 80 x 19.40
Total EWIP 12,887
20
Problem 13-6
Month of April 2010
Transferred In – Current month 30,000
Adjustment for lost units ( 380)
EUP 29,620
Materials:
Transferred Out to the next department:
From BWIP: (2,000 x 0%) 0
From SIP: (30,720 – 2,000) 28,270 28,270
EUP 29,620
Conversion Costs:
Transferred Out to the next department:
From BWIP: (2,000 x 40%) 800
From SIP 28,270 29,070
EUP 30,150
21
Month of April 1010

Accounted for:
From BWIP 2,000
From SIP 28,270 30,270
Lost units in production 380

Costs in current month:
Transferred in costs 1,295,875 ÷ 29,620 = P43.75
Costs added in this department:
Materials 226,593 ÷ 29,620 = 7.65
Conversion costs 1,026,306 ÷ 30,150 = 34.04
Total costs added 1,252,899 41.69
Total costs in current month 2,548,774 P85.44
Total costs to account for P2,688,142

From BWIP:
Materials 0
Conversion costs 27,232 = 800 x P34.04
Total from BWIP 166,600
From SIP 2,415,389 = 28,270 x 85.44
Total costs of units TO 2,581,989
Materials 10,327 = 1,350 x 7.65
Total EWIP 106,153
22
Problem 13-7
1. Total Equivalent Units of Production:
Direct Conversion
Materials Costs
Cost added in March P1,480,000 P942,000
Divided by cost per equivalent unit ÷ P20 ÷ P12
Equivalent units of work done in March 74,000 78,500
2. Equivalent Units of Production of Actual Units:
Direct Conversion
Materials Costs
Total equivalent units of production (no. 1) 74,000 78,500
Less: the following
Completed from BWIP 0 7,500 (75%)
Completed from SIP: (61,000 - 10,000) 51,000 51,000
Normal spoilage: (61,000 x 11%) 6,710 6,710
Abnormal spoilage: (8,000 – 6,710) 1,290 1,290
Total 59,000 66,500
EUP of ending work in process 15,000 12,000
Divided by actual units of EWIP ÷ 15,000 ÷ 15,000
3. Percentage of completion of EWIP 100% 80%

23
4. Cooking Department
For the Month of March 2010

Beginning WIP 10,000
Started in Process 74,000

From BWIP 10,000
From SIP 51,000 61,000
Ending WIP 15,000
Normal spoilage 6,710
Abnormal spoilage 1,290

Costs added in current month:
Direct materials 1,480,000 ÷ 74,000 = P20
Conversion costs 942,000 ÷ 78,500 = 12
Total costs to account for P2,672,000 P32

Completed and transferred Out:
From BWIP:
Direct materials 0
Conversion costs 90,000 = 7,500 x P12
Total BWIP 340,000
From SIP 1,632,000 = 51,000 x 32
Normal spoilage 214,720 = 6,710 x 32
Total cost of units transferred out 2,186,720

Direct materials 300,000 = 15,000 x 20
Conversion costs 144,000 = 12,000 x 12
Total EWIP 444,000
24
Problem 13-8
Department B
Month of January 2010
Actual Equivalent Units

Quantity Schedule Units Materials Conversion
Received from Department A 12,000
Transferred Out to finished goods 9,000 9,000 9.000

Ending work in process 2,000 0 1,400
Normal spoilage (9,000 x 5%) 450 0 405
Abnormal spoilage 550 0 495
Total accounted for 12,000 9,000 11,300

Transferred In costs P 84,000 ÷ 12,000 = P 7.00
Materials 18,000 ÷ 9,000 = 2.00
Cost accounted for as follows:

Transferred Out to finished goods:
Completed P117,000 = 9.000 x P13.00
Normal spoilage:
Costs added this dept.:
Materials 0
Total costs 4,770
Total costs Transferred Out 121,770
Transferred In costs 14,000 = 2,000 x 7.00
Cost added:
Materials 0
Total EWIP 19.600
Abnormal spoilage:
Cost added:
Materials 0
Total abnormal spoilage 5,830
25
Problem 13-9
Assembly Department
Month of April 20010
Actual Equivalent Units of Production
Quantity Schedule Units Material A Material B Conversion
Transferred Out to FG 7,000 7,000 7,000 7,000

Ending work in process 2,000 2,000 2,000 1,900
Normal spoilage (7,000 x 5%) 350 350 0 315
Abnormal spoilage 650 650 0 585
Total accounted for 10,000 10,000 9,000 9,800
Costs Schedule Total costs EUP Unit Costs

Material A P 13,500 ÷ 10,000 = P 1.35
Material B 4,500 ÷ 9,000 = 0.50

Transferred Out to FG:
Completed P 73,150 = 7,000 x P10.45
Normal spoilage:
Material A 473 = 350 x 1.35
Material B 0
Costs of normal spoilage 3,182
Total costs transferred out 76,332
Material A 2,700 = 2.000 x 1.35
Material B 1,000 = 2,000 x .50
Total EWIP 20,040
Abnormal spoilage:
Material A 877 = 650 x 1.35
Material B 0
Total abnormal spoilage 5,908
26
Problem 13-10
a. Beginning WIP 3,000

Transferred Out 40,000

Ending WIP 4,000
Bikes lost 4,000
Units accounted for 48,000
1. Therefore:
Bikes passing through Assembly 48,000
Less bikes in ending WIP (have not reached the inspection
Point so there is no way to determine acceptability) (4,000)
Bikes reaching the inspection point 44,000
Normal defective rate x 5%
Normal number of spoilage 2,200
2. Total bikes lost 4,000

Normal spoilage (2,200)
Abnormal spoilage 1,800
b. Units Trans. In Material Conversion

Transferred Out 40,000 40,000 40,000 40,000
Ending WIP 4,000 4,000 2,000 800
Normal spoilage 2,200 2,200 2,200 2,200
Abnormal spoilage 1,800 1,800 1,800 1,800
EUP 48,000 48,000 46,000 44,800
c. Total Trans. In Material Conversion

Beginning WIP P 102,790 P 82,200 P 6,660 P 13,930
Current costs 1,576,070 1,237,800 96,840 241,430
Total cost P1,678,860 P1,320,000 P103,500 P255,360
Divided by EUP ÷ 48,000 ÷ 46,000 ÷ 44,800
Cost per EUP P 35.45 P 27.50 P 2.25 P 5.70
d. 1. Normal damaged units: (2,200 x P35.45) P 77,990

2. Abnormal damaged units: (1,800 x P35.45) P 63,810
3. Good units completed: (40,000 x P35.45) P1,418,000
4. Ending WIP:
Transferred In: (4,000 x P27.50) P 110,000
Cost added:
Material: (2,000 x P2.25) 4,500
Conversion: (800 x P5.70) 4,560
Total EWIP P 119,060
e. Cost of good bikes P1,418,000

Cost of Normal spoilage 77,990
Total costs of transferred out to the Packing Department P1,495,990
Average unit cost: (P1,495,990 / 40,000) P 37.40

27
Problem 13-11
Cleaning Department:
Materials:
From BWIP: (1,000 x 0%) 0
From SIP: (7,400 – 1,000) 6,400 6,400
Ending WIP: (1,600 x 100%) 1,600
EUP 9,000
Conversion Costs:
From BWIP: (1,000 x 20%) 200
From SIP 6,400 6,600
Ending WIP: (1,600 x 25%) 400
EUP 8,000
Milling Department:
Materials:
From BWIP: (3,000 x 100%) 3,000
From SIP: (6,000 – 3,000) 3,000 6,000
Ending WIP: (4,000 x 0%) 0
EUP 6,400
Conversion Costs:
From BWIP; (3,000 x 20%) 600
From SIP 3,000 3,600
Ending WIP: (4,000 x 25%) 1,000
EUP 5,000
28
2. Cleaning Department
Month of May 1010

Beginning WIP 1,000
Competed and transferred out:

From BWIP 1,000
From SIP 6,400 7,400
Ending WIP (Squeeze) 1,600

Current month:
Materials 90,000 ÷ 9,000 = P10.00

From BWIP:
Cost last month (BWIP) P 18,000
Materials 0
Conversion cost 2,000 = 200 x P10.00
Total BWIP 20,000
From SIP 128,000 = 6,400 x 20.00
Total costs of completed units 148,000
Total costs of units transferred out 162,800
Ending WIP:
Materials 16,000 = 1,600 x 10.00
Conversion cost 4,000 = 400 x 10.00
Total EWIP 20.000
Abnormal lost units 5,200 = 260 x 20.00
29
Milling Department
Month of May 2010

Beginning WIP 3,000

From BWIP 3,000
From TI 3,000 6,000
Ending WIP (Squeeze) 4,000
Cost Schedule Total Costs EUP Total Costs

Transferred In costs 162,800 ÷ 7,400 = P22.00
Materials 6,400 ÷ 6,400 = 1.00
Cost accounted for:

From BWIP:
Materials 3,000 = 3,000 x P 1.00
Total BWIP 97,940
From TI 98,700 = 3,000 x 32.90
Total costs of completed units 196,640
Total costs of units transferred out 206,510
Ending WIP:
Cost added:
Materials 0
Total EWIP 97,900
Abnormal lost units 3,290 = 100 x 32.90

10-13 Process Costing

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1

CHAPTER 10 16. (a)

Total unit cost P1,995

Units started into production 3,900 10% x 70,000 = 7,000 -0–

Units completed 3,700 40% x 70,000 = 28,000 -0–

130 x P7.10 EUP 565,000

Units started in process 10,000 - - - -

Units accounted for 10,000 4,000 3,000 2,400 2,100

Units in process, end 1,000

Problem 10-4 Cost Schedule Total Cost EUP Unit Cost

Cost transferred in P16,120 ÷ 13,000 = P1.24 Units in process, end:

Cost added in this dept. Transferred in 38,750 = 5,000 x 7.75

Total cost to account for P28,976 P2.34 Problem 10-6

(2) Cost of Production Reports: 1. Equivalent Units of Production Dept. 1 Dept. 2

Transferred out P40,000 = 125,000 x P0.32 Department 1

Ending work in process 7,000

Department 3 Cost Schedule Total Cost EUP Unit Cost

Quantity Schedule Units Transferred in cost P21,300 ÷ 15,000 = P 1.42

Transferred out 112,000

Conversion Cost: Transferred out to next department 1,860

Transferred out to finished goods 1,800

Cost Schedule Total Cost EUP Unit Cost

Cost added this dept.:

Ending work in process: (140 x 75%) 105 Overhead 103.00 = 24 x 4.29

EUP 1,965 Total cost of work in process 3,424.00

Materials and overhead: 3. 78,500

Problem 10-10 Transferred out to next department P88,328* = 5,000 x P17.66543

Overhead 576 = 360 x 1.60017 Work in process – Assembly Department 38,746

Factory payroll 43,660

Factory overhead control 21,297

Month of June, 2010 3b. 56,225

3c. Work in process – Finishing Department 88,328

3c. Finished goods I 105,735

Solutions to Multiple Choice – Computational

Equivalent Units of Production:

Unit cost – Materials:

Equivalent Units of Production – Materials

Unit cost – Materials:

Work in process, July 31: (12,000 x P0.51) P 6,120

Transferred in costs (4,000 x P50 P200,000

Units completed (100%) 20,000

Equivalent units of production:

Cost of units completed and transferred out: (12,000 x P2.80) P33,600

Equivalent production for labor:

Unit cost for labor:

Units transferred out: (7,200 x P12.35) P88,920

Work in process, end: (420 x P12.35) P 5,187

Equivalent production for materials:

Material unit cost:

Units transferred out: (6,700 x P10.65) P71,335

Units in process, end: (180 x P10.65) P 1,917

Units completed: (460 x P997) P458,620

Units in process, end:

Equivalent Units of Production:

Units completed: (34,000 x P17.30) P588,200

Units in process, end:

Equivalent Units of Production:

Units completed: (90 x P2,105) P189,450

Units in ending WIP:

Equivalent Units of Production:

Units completed: (90 x P141,500) P12,735,000

Units in process, ending:

Equivalent Units of Production: