COST ACCOUNTING QUIZ 4 (FINALS)

1. Cubone Inc. uses a processing costing system. The company adds materials at the

beginning of the process in the Assembly Department, which is the first of two stages of

its production process. Information concerning the materials used in the Assembly

Department during November 2017 is as follows:

Units started during November: 30,000

Units completed and transferred: 21,000

Units in process, end (20% complete): 9,000

Material cost: P 100,500

There were no beginning inventories.

How much was the material cost of completed and transferred units? - b. P 76,380

2. Given for a certain process:

• Beginning Work in Process, 2/5 completed: 500 units

• Transferred in from Prior Department: 2,000 units

• Normal spoilage: 200 units

• Abnormal spoilage: 300 units

• Goods completed and transferred out: 1,700 units

• Ending Work in Process, 1/3 completed: 300 units

Conversion costs of beginning WIP is P610. Current period conversion costs total

P3,990. Assume that all spoilage occurs at the end of the process. Compute the

conversion cost per EUP under the FIFO method - b. 2.19

3. The costs of normal spoilage discovered during the process are allocated to the units in

ending work-in-process inventory, in addition to completed units - b. if the units in

ending work-in-process inventory have passed the inspection point