PRACTICE

PROBLEMS
ACC 217 COST ACCOUNTING AND CONTROL
Rolex Paris Masters Tennis Store uses a process costing
system. For March, the company has the following
activities:
Beginning work-in-process inventory (1/3 completed) 6,000 units
Units placed in production 24,000
Good units completed 18,000
Ending work-in-process inventory (1/2 completed) 10,000
Cost of beginning work-in-process P5,000
Direct material costs, current P18,000
Conversion costs P13,800
Direct materials are placed into production at the beginning
of the process. All spoilage is normal and is detected at the
end of the process.
Requirements:
Using the FIFO method, determine the following:
1. Equivalent costs of materials and conversion costs
2. Cost per equivalent unit of materials and conversion costs
3. Total cost of transferred unit
4. Cost of work in process, ending
5. Total cost to be accounted for
Wilson Sports is a manufacturer of sportswear. It produces all
of its products in one department. The information for the
current month is as follows:
Beginning work-in-process 20,000 units
Units started 40,000
Units completed 50,000
Ending work-in-process 8,000
Spoilage 2,000
Beginning work-in-process direct materials P12,000
Beginning work-in-process conversion P 4,000
Direct materials added during month P 60,000
Direct manufacturing labor during month P 20,000
Beginning work-in-process was half complete as to conversion. Direct
materials are added at the beginning of the process. Factory overhead
is applied at a rate equal to 50 percent of direct manufacturing labor.
Ending work-in-process was 60 percent complete. All spoilage is normal
and is detected at end of the process.
Requirements:
Using the weighted average method, determine the
following:
1. Equivalent costs of materials and conversion costs
2. Cost per equivalent unit of materials and conversion costs
3. Total cost transferred out
4. Cost of normal spoilage
5. Total cost to be accounted for