Professional Documents
Culture Documents
Instructions:
1. Supply the answers. No erasures on final answers.
2. Solutions on worksheet. No solution, no credit.
Crom Inc has a process cost sytem. All materials are added if the process is 30% complete in
Department One. The following information is available for the month of January.
Units
Work in process, 8/1 1,000
(25% complete as to conversion cost)
Started in August 3,000
Transferred to Department Two during August ?
Work in process, 8/31
(40% complete as to conversion cost) 1,200
ABC Corporation operates two departments. In Department 2, materials are applied upon 50%
completion of the process. Below are the information gathered from the production department for the
month ended February 28. 2017.
Units Cost
WIP, 2/1/17, 60% complete 10,000
Direct Materials P 21,320
Conversion Cost 33,168
From preceding department 39,500
Added this period 90,000
Direct Materials P 173,160
Conversion Cost 197,904
From preceding department 310,500
WIP, 2/28/17, 40% complete 12,000
9. Using WA method, the total cost to account is _______________________
10. Using WA, method, the unit cost of completed units is _______________________
11. Using WA, method, the cost assigned to WIP, end is _______________________
12. Using FIFO method, the total cost to account is _______________________
13. Using FIFO method, the total cost to complete beg inventory is _______________________
14. Using FIFO method, the cost assigned to work in process, end is _______________________
On February 1, 2017, the Zatarain Company had 6,000 units of WIP in Department B, the second
and last stage of their production cycle. The costs attached to these 6,000 units were P18,220 of costs
transferred-in from Department A, P2,000 of material cost added in Department B and P10,440 of
conversion cost added in Department B. Materials are added the process is 50% complete in Department
B. Conversion costs was 40% complete on February 1. During February, 14,000 units were transferred-in
from Department A at a cost of P31,780; and material costs of P40,000 and conversion costs of P32,760
were added in Department B. On February 28, Department B had 5,000 units of WIP that were 60%
complete as to conversion costs.
Using WA method,
18. What is the total cost per EUP ___________________
19. The total cost of transferred out is ___________________
20. The total cost of ending WIP ___________________
Mendoza Corp manufactures only one product in which raw materials must pass through
processes A, B and C, in that order, before completion.
Rosalyn Division of Rosal Paint produces environmental paints in which spoilage takes place on
a continual basis. Management considers normal spoilage to be 1% or less of total gallons of materials
placed into production this period. The following operating statistics are available for August.
Gallons Cost
Work in process, 8/1 10,000
(30% complete as to materials) P 21,950
(40% complete as to conversion cost) 59,870
Started during August 150,000
Materials 322,350
Labor 489,280
Work in process, 8/31 4,000
(50% complete as materials)
(60% complete as to conversion cost)
Spoiled 2,400
Using FIFO method:
23. EUP for CC is _________________________
24. Total Cost to account is _________________________
25. Unit cost of finished and transferred units _________________________
Using WA method:
26. EUP for materials is _________________________
27. Cost of completed units _________________________
28. The amount of loss charged to period cost _________________________
Rommel Division of Rosal Paint produces environmental paints. Materials are added at the end
of the process. Management considers normal spoilage to be 5% or less of total gallons of materials placed
into production. Inspection is done when the process is 70% complete. The following operating statistics
are available for August.
Gallons Cost
Work in process, 8/1, 45% 4,000
Materials -
Conversion Cost P 5,760
Started during August 20,000
Materials 84,000
Conversion Cost 65,920
Work in process, 8/31, 75% 4,000
Spoiled 2,000
Using WA method:
32. EUP for materials is _________________________
33. Cost of units still in process on 8/31 _________________________
34. The amount of loss absorbed by completed units _________________________
Redeemer Division of Rosal Paint produces environmental paints. Materials are added at the
beginning of the process. Management considers normal spoilage to be 2% or less of total gallons of
materials placed into production this period. Inspection is done when the process is 30% complete. The
following operating statistics are available for August.
Gallons Cost
Work in process, 8/1, 20% 4,000
Materials P22,000
Conversion Cost 10,025
Started during August 26,000
Materials 104,000
Conversion Cost 70,675
Work in process, 8/31, 40% 4,000
Spoiled 1,000
Using WA method:
38. EUP for materials is _________________________
39. Cost of units still in process on 8/31 _________________________
40. The amount of loss absorbed by F&T units _________________________
The production records of Department 1 of Jeff-Ian Company for the month of August are
provided as follows:
Materials are added at the beginning of the process. Eighty percent of all units put into process
were completed and transferred to Department 2. Lost units are discovered at inspection point when the
process is 75% complete. The management expects this to be 5% of completed units or less.
Locre Inc. is operating three departments. The production records of Department 2 for the month
of July 2015 are shown below:
All materials are added when the process is 60% complete. During inspection (upon 40%
completion), the company expects about 10% of all units put into process to be lost. The balance is
charged immediately to income statement.
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