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CHAPTER 10
Answers to Multiple Choice – Theoretical
1.
2.
3.
4.
5.

b
c
b
b
b

6.
7.
8.
9.
10.

c
c
c
c
a

11.

d

Solutions to Multiple Choice – Computational
1.

(d)
Units started in process
Units in process, end - Dept. 1
Units in process, end - Dept. 2
Units transferred out to finished goods

2.

(a)
Units in process, beginning
Units placed in process
Units in process, end
Units transferred out to Dept. 2

3.

P6.00

(a)
Units transferred to finished goods (100%)
Ending work in process (400 x 25%)
Equivalent units of production

6.

(a)
P14,080 / 4,400 =

7.

29,000
2,400
31,400

(a)
P188,400 / 31,400 =

5.

6,000
14,000
(4,200)
15,800

(a)
Units completed and transferred out (100%)
Units in process, end (3,000 x 80%)
Equivalent units of production – Materials

4.

95,000
( 21,000)
( 12,000)
62,000

P3.20

(a)
100 x P3.20

=

P320

4,300
100
4,400

end 15.620 x P7.000) 6. (a) 2.2 8.830) P7.10 x 67.193 / 3. end (18.000 (b) P282.400 13. (a) Materials are added in Department 1.10 16.620 80 130 3.000 = P274.10 14.000 2.900 3.702 (a) 80 x P7.10 12. 11. P8. 17.10) P25.830 Unit cost = (P27.700 200 (a) 130 x P7. (a) Units placed in production Units transferred out to next department Units in ending work in process 9.10 Labor ost of units transferred out: (3. (c) Units transferred out to finished goods (100%) Units in process.000 69.392 74.000 (67.000 x 1/3) Equivalent units of production – overhead 10.200 (a) Units completed and transferred out (100%) Units completed and on hand (100%) Units in ending work in process (200 x 65%) Equivalent units of production 3. (a) Units transferred out to next department (100%) Units in ending work in process (6.792 . 3.600 x 72%) Equivalent units of production – conversion cost 61.000 EUP x P4.700.000 = P4.000 67.900 / 69. 73. = = P568 (a) Units started into production Units completed Units in process. 13.

45 P0.850 1.400 Unit costs: Transferred in cost: (P24.000 3.000 Conversion cost: Units transferred out Units in process.940 (d) .65 0.150 31.000) Materials: (12.015 P1.000 – 3.90 0. 21. P5.000 x P0.995 P23. end 19.95 P1.000 x 2/3) EUP 12.500 / 15. end: Transferred in cost: (9.000) Total unit cost Cost of units transferred out: (12.60) Cost of units in process.580 / 56.12 0.690 / 31. P0.000 14.000 -012. (P7. (P13.000 Cost of units transferred out: Transferred in.400 56. end (9.08 1.200 / 60. end EUP 12.000) CC: (P53. (b) Equivalent units of production: Units finished and transferred to finished goods Units in process.400) Total unit cost 20.52 (b) Equivalent units of production: Materials: Units transferred out (15.000 x 70%) EUP 48.02) = P960 / 12.150 x P0.000 Conversion cost: (P14.750 / 55.000 60.000 2.000) This department: (P18.000 12.740 (b) Equivalent units of production: Materials: Units finished and transferred out Ending work in process EUP 48.050 / 37.890 P7.000) Units in process.250 Unit cost: Transferred in cost: (P24.000 x P1.210 / 14.60 P0.995) P0.95 0. end (3.000 8.3 18.150) Units in process.000 Conversion cost: Units finished and transferred out Ending work in process (12.000) This department: Materials.000 x 35%) EUP 28.000 x 4 x P.65) Cost this department: (3.

600 Unit cost: Transferred in: (P300.480 P63.000 x P0.99 1.000 = 28.000 x P8.500 x 75% 24.000 530.000 x 60% 10.000 34.000 x P1.20) Cost to account for P268.100 16.000 565.500 35% x 70.500 24.350 / 565.39( Cost added: Direct labor: (20.64 Cost of ending work in process: Transferred in: (70.600) Total unit cost P .000 x P0. 530.500 35.600 x P1.4 Equivalent units of production: Materials: Units transferred out to finished goods Ending units in process: 10% x 70.800 7.99) Conversion cost: (47.05 P2.000) Materials: (P559.000 / 500.800 24.000 x 30% 28.000 15% x 70.000 x P3.650 49.000 2.000 = 24.000 40% x 70.600 577.480 / 577.19) Overhead: (20.800 P356. 60 .05) Total P 42.875 20.60) Materials: (35.630 (a) Transferred in cost: (32.000 = 7.000) Conversion cost: (P606.000 87.500 EUP Conversion cost: Units transferred out to finished goods Ending units process: 7.500 x 85% EUP 22.000 = 10.280 .980 P126.825 47.000 -0– -0– 10.

000 x P1.000) Conversion cost: (760. P P148 (a) Equivalent units of production: Materials: Units completed Units in process.500) 9.300) Unit cost this department: Direct materials P 1.500 147.500 P72 80 .50 Total cost to account for 24.000 x 45%) x P2.000 x P5.959 P100.000 / 10. end: Transferred in cost (20.23 Conversion costs 2.00) Cost added this department: DM: (20.959 / P8.000 10.000 24.000 x50%) EUP Unit costs: Materials: (P720. end (1.73 8.000 1. 5.000 units = 25.00 P 3.000 / 9.300 20.000 / 10.100 P656.000 500 9. end EUP Conversion cost: Units completed Units in process.300 58.000 P508.73) Units in process.73 78.480.600 22.059 (a) P1. (b) Unit cost from preceding department: (P391.5 23.000 9.500 / 78. end Total cost to account for: Units transferred to finished goods Units in process.50 Total unit costs Total units to account for Units transferred in: (P508.23) CC: (20.

000 50.000 x 100%) Chemical Q: EUP 27.000 x P5) Conversion cost: (10.000 x P3) Cost of ending work in process P 75.000 x 2/3) EUP 35.000 P105.000) Total unit cost P 5.00 3.000 10.000) Conversion cost: (P135.00 P10.000 / 50.000 Unit costs: Materials: Chemical P: (P250.000 Conversion cost: Completed and transferred out Ending work and process. (a) Equivalent units of production: Materials: Completed and transferred out Ending work in process: Chemical P: (15.0 35.000 / 45.000 .000 15.000 x P10) P350.000 .6 26.000) Chemical Q: (P70.000 45.00 2. (15.000 (a) Ending work in process:: Materials: Chemical P (15. Chemical P Chemical Q 35.000 / 35.000 30.00 Completed and transferred out: (35.000 35.

000 (c) 1.000 4.000 2.500 22.000 x 50% 10.100 2. B Dept.000 875 1.425 .000 25.900 6.000 46.100 (d) 2.000 x 95% EUP 40.000 1.425 46.000 10.000 9.000 12.000 x 25% = 2.500 x 35% 3. end: 2.500 x 80% 2.000 4.000 7.000 x 30% = 3. end: 10.000) Units in process.000 3.000 2 (b) 4.000 6.000 900 9.400 2.900 Problem 10-3 Materials: Units transferred out: (50.100 PROBLEM 10-2 Dept.7 Solutions to Problems Problem 10-1 D Units started in process Units transferred in Units to account for Transferred to next department Transferred to finished goods Ending work in process Units accounted for E P A R 1 10. A Dept.000 10.650 2.500 12.400 600 3.000 500 1.000 12.000 x 55% 2.600 500 2.500 13.000 x 100% EUP Conversion cost: Units transferred out Units in process.400 (h) 1. C Materials: Transferred out (100%) Ending work in process EUP 15.000 T M E 3 N T S 4 5 3.000 x 25% = 2.000 (f) 2.100 300 2.500 x 80% 10.400 (g) 2.000 x 20% = 2.000 (c) 2.000 10.000 – 10.500 9.000 6.000 9.500 2.000 1.000 (a) 4.000 3.500 x 20% 10.000 40.000 Conversion cost: Transferred out Ending work in process EUP 15.

000 x 1. Materials CC Total cost to account for Total Cost EUP Unit Cost P16.000 2.84 P2.860 9.24 Cost accounted for: Transferred out Work in process.000 Transferred out Work in process.000) Units in process.740 = 11.120 ÷ 13.000 Conversion cost: Units transferred out Units in process.000 = P1. 2010 Quantity Schedule: Transferred in Units 13.000 900 11. 2.000 Cost Schedule Cost transferred in Cost added in this dept.900 = 0.8 Problem 10-4 1.900 Department 2 Cost of Production Report Month of July 31.34 2.000 13.000 x 45%) EUP 11. end (2.996 P28.26 0.000 – 2.480 = 2. Equivalent units of production Materials: Units transferred out: (13.84 .000 x P2. end Total accounted for 11.000 = 11. end EUP 11.000 -0– 11.34 P25. end: Cost transferred in Cost added: CC Total cost accounted for 2.24 756 P28.976 = 900 x 0.976 ÷ ÷ 11.

Equivalent Units of Production Materials: Units transferred out (100 %) Ending units in process EUP Conversion cost: Units transferred out Ending units in process EUP 2.000 258.000 15.75 P7. 2010 Quantity Schedule Units started in process Units 75. end Total accounted for 55.75 Department 2 Cost of Production Report Month of January.000 243.500 P708.000 Cost Schedule Direct materials Conversion costs Total cost to account for Total Cost P300.000 Department 1 Cost of Production Report Month of January.000 55.75 60.000 = 4.9 Problem 10-5 1.000 x = 9.750 = 15.75 4.000 60.750 16.000 Cost Schedule Transferred in cost Cost added this department: CC Total cost to account for Total Cost P465.000 x P11.000 69.750 P558.000 33.000 75.00 3.000 55. 2 60.125 = 55.000 60.000 x 4.000 = P 7.125 P11.000 Units transferred out Units in process. 1 Dept.375 ÷ ÷ EUP Unit Cost 60.75 = = Unit Cost P4. end: Materials CC Total accounted for P465.000 59.00 3.000 15.000 x P7.000 4.000 -055.000 x 4.000 ÷ 69.000 75.750 EUP ÷ 75.000 Transferred out Units in process.000 = 60.875 38. end: Transferred in Cost added: CC Total accounted for P653.000 9.875 Transferred out Units in process. 2010 Quantity Schedule Units transferred in Units 60.75 59. end Total accounted for 60.750 P558.000 5.375 P708.000 Units transferred out Units in process. Dept.125 .375 = = 5.000 x 7.

14 0.000 10.300 P45.300 = = 25.10 Problem 10-6 (1) Equivalent Units of Production Materials: Units transferred out Units in process.300 EUP ÷ 150. 3 125.000 x ÷ EUP Unit Cost 125.000 = Unit Cost P0.62 0.000 = 0.000 115.000 .000 116.32 3.000 x P0.30 .000 = ÷ 135.000 x 10.800 ÷ 116.0 115.000 = P0.000 2.14 0.500 1.000 125.700 114.000 Transferred out Ending work in process Total accounted for 115.300 = 115.62 3.000 125.000 115.800 P45.800 = = 10.32 0. end EUP (2) Dept. 2 Dept.000 112.000 34.800 P74.000 112.000 = 1.30 P0.000 Cost Schedule Materials Conversion costs Total cost to account for Total Cost P21.000 10.000 Transferred out Ending work in process Total accounted for 125.18 P0.32 Transferred out Ending work in process: Materials Conversion cost Total accounted for P40.18 Department 2 Quantity Schedule Transferred in Units 125.000 .200 300 P74.000 = 125. 1 Dept.000 150. – CC Total accounted for P71.000 1.000 150.000 = P0.000 Cost Schedule Transferred in cost Cost added this department: Conversion cost Total cost to account for Total Cost P40.000 = Transferred out Ending work in process: Transferred in cost Cost added this dept.000 24.0 112.000 135.700 Cost of Production Reports: Department 1: Quantity Schedule Started in process Units 150.32 0.000 25.000 25. end EUP Conversion Costs Units transferred out Units in process.

21 Problem 10-7 1.000 5.000 Cost Schedule Direct materials Conversion cost Total cost to account for Total Cost EUP P12.000 = 8.860 567 P95.21 P0.500 7.000 = 6.000 3.500 21.300 ÷ 24.000 25.000 Cost Schedule Transferred in cost Cost added this department: CC Total cost to account for Total cost P71.387 EUP 115.62 0.000 Transferred out Ending work in process Total accounted for 112.250 13.87 P1. Equivalent Units of Production Materials: Transferred out Completed and on hand Ending work in process EUP Conversion cost: Transferred out Completed and on hand Ending work in process EUP 2.42 Transferred out Ending work in process: DM CC P21.250 Cost of Production Report Department 1 Quantity Schedule Started in process Units 25.83 1.83 Transferred out to finished goods Ending work in process: Transferred in cost Cost added this dept.087 ÷ P95.960 = 112.000 23.355 = = Unit Cost P0.000 1.000 115. 2 15.: CC Total accounted for P92.000 7.42 0.000 10.650 ÷ 23.705 ÷ 21.000 15.08.000 .62 0.000 x 2.11 Problem 10-6 (continued): Department 3 Quantity Schedule Transferred in Units 115.700 = Unit Cost P0.000 8.500 P31.500 .387 = = 3.000 18.700 x 0.000 6. 1 Dept.000 1.300 4.87 = 15.55 0.000 Transferred out Ending work in process Total accounted for 15.000 x P0.400 5. Dept.655 x x x P1.55 0.000 = 114.

355 Department 2 Quantity Schedule Transferred in Units 15.800 280.500 10.500 10.000) P0.000 101 250.: CC Total accounted for P18.000 13.000 7.250 x x 1.875 9. 15.500) 0.035 104: (P13.500 7.510 P37.000 / 260.620 2.430 P37.000 300.730 ÷ ÷ EUP 15.02 102: (P3.66 9.175) Total unit costs P0.000 7.000 102 250.000 1.01 103: (P9.500 10.000 15.000 300.42 P0.362.750 8.000 x 45% 17.24 P 2.000 17.000) 0.763.000 250.000 Cost Schedule Transferred in cost Cost added this department: CC Total cost to account for Total Cost P21.000 17.05 Conversion cost: (P117.000 104 250.500 x 50% 7.000 x 30% = 50.000 15.500 10.000) 0.000 17.000 5.66 2.000 6.535 .000 x 98% EUP 2.000 x 15% = 50.750 4.50 / 267.660 = = 7.000 Transferred out to finished goods Completed and on hand Ending work in process Total accounted for 7.000 1.300 16.42 1. Equivalent Units of Production: Materials: Transferred out Ending units in process: 50.730 = = 7.250 = = Unit Cost P 1.000 10.000 / 300.66 Transferred out to finished goods Completed and on hand Ending work in process: Transferred in cost Cost added this dept.500 10.50 / 280.000 x 35% = 50.12 Total accounted for Problem 10-7 (Continued) P31.500 7.24 Problem 10-8 1.000 103 250.940 6.000 / 300.000 x 20% = EUP Conversion Cost: Transferred out Ending units in process: 15.000 15.000 17.42 1.500 x 65% 10.115 0.000 x x P 2.175 Unit costs: Materials: 101: (P6.500 7.

50 P15.00 500.000 x P0.02) 102: (50.000.965 Finishing Department: Materials and overhead: Transferred out to finished goods Ending work in process (60 x 40%) EUP 1.13 Problem 10-8 (Continued): Cost of ending work in process inventory: Materials: 101: (50.806 .42) Total cost P 1.612.00 P 2.824 Labor: Transferred out to finished goods Ending work in process (60 x 10%) EUP 1.800 24 1.175 x P0.000 x P0. Equivalent Units of Production: Assembly Department: Materials: Transferred out to next department Ending work in process (100%) EUP 1.500 x P0.50 500.05) Total Conversion cost: (30.50 12.000 x P0.800 6 1.286.860 105 1.673.00 612.00 Problem 10-9 1.01) 103: (17.860 140 2.035) 104: (10.000 Conversion cost: Transferred out Ending work in process: (140 x 75%) EUP 1.

00 = 1.57 4.800 60 1.100.830.860 Cost Schedule Transferred in cost from prior dept.29 .000.00 24 6 24 x x x 37.57 4.82 x P88.00 824 1.000 Transferred out to next department Work in process.965 = = = Unit Cost P15. Peninsula Company – Assembly Department Cost of Production Report Month of August Quantity Schedule Started in process Units 2.000 1.14 2. end: Transferred in cost Cost added this dept.806 1.860 140 2.82 2.58 P39.006. end: Materials Labor Overhead Total work in process Total cost accounted for *P3 adjustment for rounding.824 Unit Cost P39.424. end Total accounted for 1.28 7.860 x P39.00* = 1.: Materials Labor Overhead Total cost of work in process Total costs accounted for P159.00* = 1.28 7.00 = 3. Cost added this department: Materials Labor Overhead Total cost to account for Total Cost EUP P 73.68 895.00 = 45.29 P88.10 9.381. end Total accounted for 1.00 EUP 2.860 Transferred out to finished goods Work in process.00 ÷ 29.58 = Peninsula Company – Finishing Department Cost of Production Report Month of August Quantity Schedule Transferred in from prior department Units 1.500. P73.860 Transferred out to finished goods Work in process.00 15.00 = 60 x 39.68 = = = 37.808.00 = 4.00 ÷ 13.800 68.874.10 9.00 P78.808.00 ÷ 18.00 ÷ 7.00 15.298.660.00 ÷ P78.00 = 103.000 Cost Schedule Materials Labor Overhead Total cost to account for Total Cost P30.692.000.825.68 Transferred out to next department Work in process.670.965 1.00 ÷ 1.00 140 105 105 x x x 15.00 ÷ P163.500.00 P163.68 2.298.586.00 = 1.

874 159. 5. 4.400 360 5. end EUP 5.300 4.800 160 4.808 73.330 26.500 89.490 98. 73. Equivalent Units of Production Trimming Department Assembly Department Finishing Department Materials: Transferred out Work in process.874 Problem 10-10 1.760 5.000 340 5.000 43. end EUP 5. 78.000 300 5.760 5.808 159.800 160 4. *P2 Rounding adjustment Work in process – Assembly Department Work in process – Finishing Department Materials Factory payroll Factory overhead control To record allocation of production cost.400 600 6.960 Labor: Transferred out Work in process.15 3.800 180 4.980 Overhead: Transferred out Work in process. end EUP 5.400 360 5.000 380 5.380 4.340 4.960 .660 Work in process – Finishing Department Work in process – Assembly Department To record transfer of goods from Assembly to Finishing Department. Finished goods Work in process – Finishing Department To record completion of goods transferred to finished Goods inventory.000 5.

317 = = = 600 360 360 x x x 5. end Total accounted for 5. 2010 Quantity Schedule Transferred in from prior department Units 5.225 Transferred out to next department Work in process.000 400 5.328* 16.971 = = = 380 350 340 x x x 3.380 5.317 ÷ ÷ ÷ EUP 6.16 2.400 Transferred out to next department Work in process.41203 1.400 600 6.12007 2.643 P94.33333 .840 7.156 576 5.225 = 5.41197 3.300 5.41203 ÷ ÷ ÷ 5. end: Transferred in cost Cost added this department: Materials Labor Overhead Total work in process Total costs accounted for P88.340 = = = Assembly Department Cost of Production Report Month of June.66543 x P17.12007 2.186 840 453 6.60017 ÷ EUP 5.786 14.760 Unit Cost = P 5. end: Materials Labor Overhead Total work in process Total costs accounted for P56.21180 = 1.164 = 400 x 10.120 P94.760 5.971 = 5.80 1.80 1.360 1.500 9.33333 P17.400 Cost Schedule Transferred in cost Cost added this department: Materials Labor Overhead Total costs to account for Total Cost P56. 2010 Quantity Schedule Started in process Units 6.000 3.000 5.60017 P10.600 18.400 x P10.60 3.66543 4.60 = 3.41197 Transferred out to next department Work in process.092 P61.000 Cost Schedule Materials Labor Overhead Total costs to account for Total Cost P33.000 Transferred out to next department Work in process. Trimming Department Cost of Production Report Month of June.217 P61. end Total accounted for 5.21180 1.400 = Unit Cost P10.

960 = 4.66560 207 373 160 4. ÷ EUP 5.02920 3. Work in process – Finishing Department 88.980 = 4. x x z 1.225 88. 56.735 .328 105.008 ÷ ÷ ÷ 4. Finished goods I 105.273 P110.00 61.746 21.000 Transferred out to finished goods Work in process. end: Transferred in cost Cost added this department: Materials Labor Overhead Total work in process Total costs accounted for 3a. 3c.960 = 1.008 = = = 160 180 160 Work in process – Trimming Department Work in process – Assembly Department Work in process – Finishing Department Materials Factory payroll Factory overhead control To record manufacturing costs. 3c.400 10.66560 6.960 P110.317 38. Cost added this department: Materials Labor Overhead Total costs to be accounted for Total Cost P 88.07228 1.735 = 4.533 = 200 x 17.29032 2.660 21.00 P22.297 56.320 4.29032 2.800 200 5.786 43.07228 1.225 Work in process – Trimming Department To record transfer of goods from Trimming to Assembly Department. end Total accounted for 4.735 Work in process – Finishing Department To record completion of finished goods.000 = Unit Cost P17.000 Cost Schedule Transferred in cost from prior dept.02820 P105.680 Work in process – Assembly Department 56. 3b. 2010 Quantity Schedule Transferred in from prior department Units 5.328 Work in process – Assembly Department To record transfer of goods from Assembly To Finishing Department.328 Transferred out to finished goods Work in process.17 P1 difference due to rounding Finishing Department Cost of Production Report Month of June.800 x P22.