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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
Ending work in process (100%) 35,000
EUP – Materials 105,000

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
Ending work in process: (35,000 x 50%) 17,500
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
Ending work in process: (6,000 x 40%) 2,400
EUP – Conversion costs 12,900

4. (a)

Transferred Out 12,000
Normal lost units 1,500
Ending work in process 2,400
EUP – Conversion costs 15,900

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

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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
Conversion costs: (P45,000 / 9,000) 5.00
Total unit costs P8.00

Cost of units transferred out: (7,000 x P8) P56,000

8. (c)

Transferred Out to next department (100%) 85,000
Ending work in process (100%) 45,000
Normal lost units (10,000 x 100%) 10,000
EUP – Materials 140,000

9. (b)

Transferred Out to finished goods (100%) 33,000
Ending work in process: (15,000 x 60%) 9,000
Abnormal lost units: (2,000 x 100%) 2,000
EUP – Conversion costs 44,000

10. (a)

Completed and transferred out 72,000
Ending work in process: (8,000 x 100%) 8,000
EUP – Materials 80,000

11. (b)

Materials in BWIP P 68,000
Total P168,000
Divided by EUP ÷ 80,000
Unit material cost P 2.10

805 .600 Ending work in process (200 x 40%) 80 Lost units: (600 x 100%) 600 EUP – Labor 10.000 TI costs – current month 450. (a) TI costs last month in BWIP P 90.000 Transferred In 15.280 Unit labor cost P 37 14.000 Labor cost incurred during the month 365. (a) Transferred Out to next department 9.000 Divided by EUP ÷ 18.200 9. (a) Beginning WIP 3.600 – 400) 9.400 Ending work in process: (200 x 40%) 80 Lost units 600 EUP – Labor 10. (a) Beginning WIP 3. (a) Beginning WIP 100 Transferred In this month 4. 3 12.800 Lost units ( 95) EUP – TI costs 4.000 Transferred Out (17.000 17.360 Divided by EUP ÷ 10.280 13.000 EUP-TI costs 18.250) Ending WIP ( 450) Lost units 300 16.080 15.000 Total 540. (a) Transferred Out to next department: From BWIP: (400 x 50%) 200 From SIP: (9.000 Units to account for 18.000 Unit TI costs P 30 18.360 Total labor costs P380.000 Transferred In 15. (a) Labor cost in BWIP P 15.

(c) 1.000 EUP 16.000 Unit material costs: (P60.805 Unit transferred in costs P 30 20. (a) 205 units x P30 = P6.150 21.000 Ending WIP (100%) 2. 4 19.000 Divided by EUP ÷ 16.350 TI costs.current month 124. (b) Equivalent Units of Production – Materials: Completed and transferred out 10.000 Units added 5.975 Abnormal lost units (100%) 25 EUP – Materials 13. (a) 25 units x P28 = P700 23.000) ÷ 13.000 EUP – TI costs 16.000 units x P12 = P12. (a) Beginning WIP 500 Transferred In 11.500 Or: Transferred Out (100%) 15.000 + P304.000 .500 Ending WIP (100%) 1.000 P 28 22. (b) Transferred In costs – BWIP P 33.000 Transferred In costs – Current month 165.500 24. (a) TI costs last month in BWIP P 19.150 Divided by EUP ÷ 4.000 Total TI costs P198.800 Total P144.500 Unit TI costs P 12 25.

7444 = P2.000 600 Normal lost units 100 100 100 Abnormal lost units 50 50 50 EUP 11.700 31.7444 = P375. (a) Equivalent Units of Production Units Materials Conversion Completed and transferred out 9.000 Divided by EUP ÷ 2.000 x P12.230 + P121.150 P12.50 = P19. (a) 250 units x P76. (c) Materials: (2. (c) Transferred Out to next department: From BWIP: (500 x 0%) -0- From TI: (2.60) 17.000 units x P41.000 9.760 Costs of EWIP P42.50 28.000 27.000 9.000 Unit material cost P 76.000 2. (d) 9.289 Conversion costs: (600 x P29.100 + P277.049 32.500) ÷ 9. 5 26.1444) P24.000 Ending WIP 2.750 Unit Costs: Materials: (P14.7444 30.700 1.700 Ending WIP: (250 x 100%) 250 Normal lost units: (50 x 100%) 50 EUP – Materials 2.750 29.125 29. (c) Materials added during the month P153.180) ÷ 11.1444 Conversion costs: (P11. (a) 50 units x P41.60 Total unit cost P41.200 – 500) 1.087 .150 9.

000 x 0%) -0- From SIP: (9.000 x 50%) 500 From SIP 8.194 Total costs of units completed and transferred out P368.000 Total costs of completed BWIP 29.500 / 9.000 8.00 Total unit cost P41.94 = P2. (a) Materials: (P121. (b) Completed BWIP: Cost last month P 14.097 .000 x P41.250) 30.000 x P11.150) P11.000) 8. (a) 50 units x P41.94 Conversion costs: (P277.880 37.000 Normal lost units: (100 x 100%) 100 Abnormal lost units: (50 x 100) 50 EUP 10.1.880 Conversion costs: (600 x P30) 18.000 x 100%) 2.000 Ending WIP: (2.180 / 10.230 Cost added this month: Conversion costs: (500 x P30) 15.000 8.500 Ending WIP: (2.94 35.94) 4. 6 33.944 36.000 .94) 3 35.150 Conversion Costs: Completed and transferred out: From BWIP: (1.250 34.000 x 30%) 600 Normal lost units 100 Abnormal lost units 50 EUP 9.230 Completed SIP: (8.520 Cost of normal lost units: (100 x P41.94) P23. (a) Equivalent Units of Production: Materials: Completed and transferred out: From BWIP: (1. (a) Materials: (2.000 Costs of EWIP P41.

(a) Materials: (900 x P150) P 1.050 .100 x P1.000) P1.50 Assignment of Costs: Completed and transferred out: From BWIP: Cost last month P 24.500 Conversion costs: (9.000 x 100%) 13.000 Total costs of completed BWIP 42.000 x 70%) 9. 7 38.500 x P4) 18.000 69.100 x 100%) 1.500 From SIP 65.700 Cost of normal lost units: Materials: (1.200 From SIP: (65.400 Total costs of EWIP P55.100 x P4) 36.000 Ending WIP: (13.700 Cost of abnormal lost units P 4.500 Ending WIP: (13.650 Ending WIP Materials: (13.650 Conversion costs: (825 x P4) 3.500 – 7.350 Conversion costs: (675 x P4) 2.200 Cost added this month – CC: (4.50 Conversion costs: (P320.400 / 80.100 39.100) 4.500) 100% 65.900 40.000 x P5.000 x P1.500 x 60%) 4.50) P1.500 Total cost of units completed 399.50) 357.100 Abnormal lost units: (900 x 100%) 900 EUP – Materials 80.100 x 75%) 825 Abnormal lost units: (900 x 75%) 675 EUP – CC 80.00 Total unit costs P5.000 65.950 Total costs of completed units after adjustment for lost units P404.500 x P0%) -0- From SIP: (72.50) P19. (a) Materials: Transferred Out: From BWIP: (7.300 4.100 Normal lost units: (1.000 / 80.000 Normal lost units: (1. (b) Unit costs: Materials: (P120.000 Conversion costs: Transferred Out: From BWIP: (7.

51195) P399.000 77.51195 Assignment of Costs: Transferred Out: (72.000 13.800 = P320.500) ÷ 80.600 Abnormal spoilage 3.500 Ending WIP 13. 8 41.500 72. (a) Equivalent Units of production Units Materials Conversion Transferred Out 72.957 Total costs of units transferred out P404.000 Normal spoilage (70.400) = P334.000 19.000 50.500 P1. (a) Unit costs: Transferred In costs: (82.500 72. (a) Equivalent Units of Production Units DM CC Completed 50.251.49029) P19.000 Ending WIP 20.000 x P1.056 44.49029) P1.715 Cost of abnormal lost units P 4.000 + P1.000 16.600) ÷ 77.80 Total unit costs P35.000 9. (b) Materials: (900 x P1.000 0 5.500 83.971 43.000 50.200) ÷ 70.100 Normal lost units 1.000) = P130.100 42.13 Cost added this department: Materials: (P0 + P655.02166) 36.100 4.616 Cost of normal lost units: Materials: (1.000/ 87. (c) Unit costs: Materials: (P10.36 Conversion cost: (P42.29 .100 x P1.374 Conversion costs: (9.573 Ending WIP: Materials: (13.400 EUP 70.000 9.000 x 10%) 7.02166) 2.000 P 9.639 Conversion costs: (825 x P4.500 x P5.000 0 2.02166) 3.49029 Conversion costs: (P13.341 Conversion costs: (675 x P4.100 1.900 + 647.000 20.200 / 83.100 825 Abnormal lost units 900 900 675 EUP 87.000 45.100 x P4.400 + P120.02166 Total unit costs P5.318 4.49029) P 1.597 Cost of EWIP P55.

(d) Completed and transferred out: Completed and transferred out: (50.000 x P9.200 Conversion costs: (19.13) P182.390 Cost added: Conversion costs: (2.80) 94.350 47.140 Cost of EWIP P734.36) P187.140 48.13) P 63.710 .000 x P35.990 46.80) 319. (a) Transferred In costs: (3.200 506.13) P27.600 x P16.600 Cost added: Materials: (20. (a) Ending work in process: Transferred In costs: (20.080 Cost of normal lost units P157.990 x 50/70) 112.000 x P9.80) 40.000 x P9.877.910 Cost added this department: Conversion costs: (5. 9 Number 45 (continued) Cost of normal lost units: Transferred In costs: (7.764.400 x P16.400 Cost of normal lost units: (P157.000 x P16.29) P1.000 x P9.500 Cost of normal lost units: (P157.990 x 20/70) 45.850 Adjusted cost of units completed and transferred out P1.320 Cost of abnormal lost units P67.

100 Labor: Transferred Out to next department 4.776 Overhead: Transferred Out to next department 4.940 Ending work in process: (810 x 60%) 486 Lost units 350 EUP 5. 10 Solutions to Problems Problem 13-1 1.938 . Assembly Department Equivalent Units of Production Month of May 1010 Materials: Transferred Out to next department 4.940 Ending work in process: (810 x 80%) 648 Lost units 350 EUP 5.940 Ending work in process: (100%) 810 Lost units 350 EUP 6.

498 = 200 Current month 847.944 ÷ 5.319.232.940 Ending WIP 810 Lost units 350 Total accounted for 6.50 Costs of units transferred out 1.900 Total to account for 6.530 = 4.940 x P249.063 Total costs accounted for P1.100 = P145.304 = 648 x 73.900 Total materials 884.855 Ending WIP: Materials 117.776 = 31.50 Overhead: Beginning WIP 22.938 = 73.499.00 Labor: Beginning WIP 8.50 Overhead 47.450 = 810 x 145.00 Total costs to account for P1.309 = 486 x 31.474 ÷ 5.002 = 5.918 P249.499.325 = 350 x 249.50 Costs accounted for: Transferred Out to next department: Completed P1.268 Current month 173.710 Total overhead 433.918 .500 ÷ 6.100 Cost Schedule Total Costs EUP Unit Costs Materials: Beginning WIP P 37.00 Total EWIP 180.100 Transferred Out to next department 4.676 Total labor 181.50 Cost of lost units 87. 11 2.764 Current month 410.00 Labor 15. Assembly Department Cost of Production Report Month of May 2010 Quantity Schedule Units Beginning WIP 200 Started in process 5.

300 EUP 14.800 Materials: Transferred Out to finished goods 13. 12 Problem 13-2 1.600 Ending work in process: (900 x 100%) 900 Normal lost units: (300 x 100%) 300 EUP 14. Mixing Department Equivalent Units of Production – Average Month of June 2010 Transferred In Costs: Beginning work in process 500 Transferred In from prior department 14.575 .800 Conversion costs: Transferred Out to finished goods 13.600 Ending work in process: (900 x 75%) 675 Normal lost units: (300 x 100%) 300 EUP 14.

404 = 14. Mixing Department Cost of Production Report Month of June 2010 Quantity Schedule Units Beginning work in process 500 Transferred In 14.600 x P186.294 P186.000 ÷ 14.946.540.500 = 900 x 35.78 Costs Accounted For: Transferred Out to finished goods: Completed P2.000 Total CC 1.380 Total materials 518.034 = 300 x 186.00 Conversion costs 66.00 CC: BWIP 78.300 Total to account for 14.00 Total EWIP 146.575 = 98.300 Total Transferred In costs 795.944 ÷ 14.00 Total costs this department 1.294 .596.350.800 Transferred Out to finished goods 13.78 Normal lost units 56.600 Ending work in process 900 Normal lost units 300 Total accounted for 14.242 Ending work in process: Transferred In costs 48.540 = 500 Current month 752.350 Total costs to account for P2.800 = P 53.052 Total costs accounted for P2.620 Current month 480.402 = 900 x 53.742.208 = 13.150 = 675 x 98.800 = 35.800 Cost Schedule Total Costs EUP Unit Costs Transferred In costs: Beginning WIP P 43.350 ÷ 14.742.78 Cost in this department: Materials: BWIP 37.78 Cost this department: Materials 31.350 Current month 1.78 Total costs 2.428. 13 Problem 13-2 (continued) 2.

Finishing Department Equivalent Units of Production Month of July 2010 Transferred In Costs: Beginning work in process 500 Transferred In from prior department 5.500 .200 Ending work in process: (450 x 331/3%) 150 Normal lost units: (150 x 100%) 150 EUP 5.200 Ending work in process: (450 x 80%) 360 Normal lost units: (150 x 100%) 150 EUP 5.710 Conversion costs: Transferred Out to finished goods 5.300 EUP 5.800 Materials: Transferred Out to finished goods 5. 14 Problem 13-3 1.

330 Total accounted for P518.00 Cost in this department: Materials 8.720 Current month 151.00 Cost this department: Materials: Beginning WIP 12.80 Total EWIP 30.200 Ending work in process 450 Normal lost units 150 Total accounted for 5.30 Total costs of TO 488.400 ÷ 5.500 = 28.000 Total TI costs 226.460 = 360 x 23.680 Total CC 158.785 .50 CC: Beginning WIP 6.785 P91.30 Cost of normal lost units 13.800 Accounted for as follows: Transferred Out to next department 5.455 Ending work in process: Transferred in costs 17.30 Costs accounted for: Transferred Out to next department: Completed P474.985 Total materials 134.320 = 150 x 28.200 Current month 121. Finishing Department Cost of Production Report Month of July 2010 Quantity Schedule Units Beginning work in process 500 Transferred In from prior department 5.760 = 5. 15 Problem 13-3 (continued) 2.695 = 150 x 91.550 = 450 x 39.200 x P91.585 Total costs to account for P518.200 Current month 202.80 Total cost in this department P292.185 ÷ 5.200 ÷ 5.710 = 23.800 Cost Schedule Total Costs EUP Unit Costs Transferred In costs: Beginning WIP P 24.50 Conversion costs 4.300 Total to account for 5.800 = P39.

800 Normal lost units ( 200) EUP 37.600 Materials: Transferred Out to finished goods 34.000 Transferred In from prior department 36. Finishing Department Equivalent Units of Production Month of April 2010 Transferred In Costs: Beginning work in process 1.000 Abnormal lost units: (100 x 100%) 100 EUP 37.500 Ending work in process: (3.500 Ending work in process: (3.400 .800 Abnormal lost units: (100 x 100%) 100 EUP 36.600 Conversion Costs: Transferred Out to finished goods 34.000 x 100%) 3. 16 Problem 13-4 1.000 x 60%) 1.

400 = 100 x 14.160.830 Total costs accounted for P2. .400 ÷ 37.00 Conversion costs 2.680 ÷ 36.00 Conversion costs 47.680 Current month 940. Finishing Department Cost of Production Report Month of April 2010 Quantity Schedule Units Beginning work in process 1.000 x 18.800 Total to account for 37.20 Total abnormal lost units 5.800 Transferred Out to finished goods 34.000 = 3.20 Total costs this department 1.620 = 100 x 26.30 Ending work in process: Transferred In costs 54.460 Abnormal lost units: Transferred In costs 1.800 x 26.560 ÷ 37.10 Cost added this department: Materials 1.30 Costs accounted for as follows: Transferred Out to finished goods P2.640 3.160.350 = 34.000 Total CC 953.000 Transferred In from prior department 36.500 x P58.00 CC: BWIP 13.600 = 14.000 Total materials 526.10 Cost added this department: Materials 42.640 P58.000 x 14.400 = 26.480. Finished goods 2.600 = P18. 17 Problem 13-4 (continued) 2.800 Cost Schedule Total Costs EUP Unit Costs Transferred In costs: Beginning WIP P 12.300 = 3.160 = 1.830 Work in process 2.180 To record costs transferred to finished goods and abnormal spoilage.000 Normal lost units 200 Abnormal lost units 100 Total accounted for 37.350 Loss from abnormal spoilage 5.810 = 100 x 18.20 Total EWIP 143.560 Total TI costs 680.500 Ending work in process 3.017.10 Costs added in this department: Materials: BWIP 8.000 Current month 668.080 Total costs to account for P2.011.400 Current month 518.011.

970 .900 Ending work in process: (100 x 80%) 80 EUP 2.900 Ending work in process: (100 x 70%) 70 EUP 2. Mixing Department Equivalent Units of Production Month of March 2010 Transferred In Costs: Transferred Out to next department 2.980 Labor: Transferred Out to next department 2.000 Materials and Overhead: Transferred Out to next department 2.900 Ending work in process 100 EUP 3. 18 Problem 13-5 1.

90 Overhead: BWIP 1.232 = 80 x 27.20 Ending work in process: Transferred In costs 7.00 Cost added in this department: Materials 2.000 Cost Schedule Total Costs EUP Unit Costs Transferred In Costs: Beginning WIP P 10.812 Current month 56. 19 Problem 13-5 (continued) 2.000 ÷ 3.552 = 80 x 19.142 ÷ 2.000 Accounted for as follows: Transferred Out to next department 2.90 Overhead 1.000 Total materials 83.887 Total accounted for P433.080 = 2.550 Increase in units 300 Total to account for 3.40 Total costs in this department P208.980 = 27.900 Ending work in process 100 Total accounted for 3.20 Costs accounted for as follows: Transferred Out to next department P421.980 = 19.970 = 22.013 Current month 66.000 = P 75.500 = 100 x 75.013 ÷ 2.967 P145.200 Total TI costs 225.00 Cost added in this department: Materials: BWIP 3.90 Labor 1.812 ÷ 2.967 .40 Total EWIP 12.000 Total labor 68.967 Total costs to account for P433.900 x P145.90 Labor: BWIP 2.603 = 70 x 22.000 Total overhead 57. Mixing Department Cost of Production Report Month of March 2010 Quantity Schedule Units Beginning work in process 150 Transferred In from prior department 2.142 Current month 80.800 Current Month 214.

720 – 2.000 x 40%) 800 From SIP 28.620 Conversion Costs: Transferred Out to the next department: From BWIP: (2. 20 Problem 13-6 1.350 x 80%) 1.270 29. Assembly Department Equivalent Units of Production Month of April 2010 Transferred In Costs: Transferred In – Current month 30.620 Materials: Transferred Out to the next department: From BWIP: (2.270 Ending work in process: (1.080 EUP 30.000 x 0%) 0 From SIP: (30.000) 28.150 .350 x 100%) 1.070 Ending work in process: (1.000 Adjustment for lost units ( 380) EUP 29.350 EUP 29.270 28.

252.350 Lost units in production 380 Total accounted for 32.142 Costs accounted for as follows: Transferred Out to next department: From BWIP: Cost last month P 139.44 Total costs of units TO 2. 21 Problem 13-6 (continued) 2.000 Cost Schedule Total Costs EUP Unit Costs Beginning WIP P 139.04 Total from BWIP 166.688.368 Costs in current month: Transferred in costs 1. Assembly Department Cost of Production Report Month of April 1010 Quantity Schedule Units Beginning work in process 2.548.763 = 1.232 = 800 x P34.270 x 85.327 = 1.899 41.270 Ending work in process 1.000 Total to account for 32.774 P85.295.593 ÷ 29.04 Total EWIP 106.350 x 7.000 From SIP 28.65 Conversion costs 36.688.989 Ending work in process: Transferred in costs 59.142 .270 30.75 Cost added in this department: Materials 10.620 = P43.620 = 7.581.000 Accounted for: Transferred Out to next department: From BWIP 2.600 From SIP 2.389 = 28.65 Conversion costs 1.875 ÷ 29.75 Costs added in this department: Materials 226.44 Total costs to account for P2.69 Total costs in current month 2.415.368 Cost added this month: Materials 0 Conversion costs 27.150 = 34.026.306 ÷ 30.153 Total costs accounted for P2.04 Total costs added 1.000 Transferred In from prior department 30.350 x 43.080 x 34.063 = 1.

000 Divided by actual units of EWIP ÷ 15.000 – 6.480. Percentage of completion of EWIP 100% 80% .000 x 11%) 6.710 Abnormal spoilage: (8.500 EUP of ending work in process 15. 22 Problem 13-7 1.000 Divided by cost per equivalent unit ÷ P20 ÷ P12 Equivalent units of work done in March 74. 1) 74.500 (75%) Completed from SIP: (61.290 1.000 51.000 Normal spoilage: (61.710 6. Total Equivalent Units of Production: Direct Conversion Materials Costs Cost added in March P1.000 .000 3.000 P942.10.500 Less: the following Completed from BWIP 0 7. Equivalent Units of Production of Actual Units: Direct Conversion Materials Costs Total equivalent units of production (no.000 78.000 12.000 78.000 66.000 ÷ 15.290 Total 59.500 2.710) 1.000) 51.

000 ÷ 74.500 x P12 Total BWIP 340.186.000 = P20 Conversion costs 942.000 Normal spoilage 6.000 Ending WIP 15.672.672.000 Cost added this month: Direct materials 0 Conversion costs 90. 23 Problem 13-7 (continued) 4. Cooking Department Cost of Production Report For the Month of March 2010 Quantity Schedule Units Beginning WIP 10.500 = 12 Total costs to account for P2.000 x 32 Normal spoilage 214.000 From SIP 51.000 Total to account for 84.000 Completed and transferred out: From BWIP 10.710 x 32 Total cost of units transferred out 2.720 Ending work in process: Direct materials 300.000 Started in Process 74.000 Total costs accounted for P2.000 From SIP 1.480.000 61.000 x 20 Conversion costs 144.290 Total accounted for 84.632.000 .000 = 15.000 = 7.000 x 12 Total EWIP 444.000 P32 Costs accounted for as follows: Completed and transferred Out: From BWIP: Cost last month P 250.000 Costs added in current month: Direct materials 1.720 = 6.000 = 12.710 Abnormal spoilage 1.000 ÷ 78.000 = 51.000 Cost Schedule Total Costs EUP Unit Costs Beginning WIP P 250.

00 Costs added this dept.200 ÷ 11.980 = 495 x 4.400 x 4.200 P13.000 x 5%) 450 0 405 Abnormal spoilage 550 0 495 Total accounted for 12.770 Ending work in process: Transferred In costs 14.000 ÷ 12.000 11.000 9.850 = 550 x 7.830 Total accounted for P147.000 = 9.00 Cost added this department: Materials 18.00 Cost accounted for as follows: Transferred Out to finished goods: Completed P117.00 Total costs 4.150 = 450 x 7.00 Total EWIP 19.400 Normal spoilage (9.200 .00 Conversion costs 45.000 9.00 Cost added: Materials 0 Conversion costs 5.620 = 405 x 4.000 x P13.600 = 1.000 x 7.00 Normal spoilage: Transferred In costs 3.000 = 2.000 Transferred Out to finished goods 9. 24 Problem 13-8 Department B Cost of Production Report Month of January 2010 Actual Equivalent Units Quantity Schedule Units Materials Conversion Received from Department A 12.000 Ending work in process 2.000 = 2.00 Total abnormal spoilage 5.000 ÷ 9.00 Cost added: Materials 0 Conversion costs 1.000 = P 7.300 Cost Schedule Total Costs EUP Unit Costs Transferred In costs P 84.: Materials 0 Conversion costs 1.000 0 1.000 9.600 Abnormal spoilage: Transferred In costs 3.770 Total costs Transferred Out 121.00 Total costs to account for P147.300 = 4.

500 ÷ 9.000 2.60 Total costs to account for P102.000 = 2.45 Normal spoilage: Material A 473 = 350 x 1.000 2.800 Costs Schedule Total costs EUP Unit Costs Material A P 13.000 = P 1.000 7.35 Material B 1.000 x .908 Total accounted for P102.040 Abnormal spoilage: Material A 877 = 650 x 1.000 9.000 7.900 x 8.000 Ending work in process 2.900 Normal spoilage (7.031 = 585 x 8.280 ÷ 9.35 Material B 4.340 = 1.45 Costs accounted for as follows: Transferred Out to FG: Completed P 73.000 10.332 Ending work in process: Material A 2.709 = 315 x 8.35 Material B 0 Conversion costs 2.500 ÷ 10.000 = 0.000 x P10.800 = 8.000 7.000 x 5%) 350 350 0 315 Abnormal spoilage 650 650 0 585 Total accounted for 10. 25 Problem 13-9 Assembly Department Cost of Production Report Month of April 20010 Actual Equivalent Units of Production Quantity Schedule Units Material A Material B Conversion Started in process 10.700 = 2.000 Transferred Out to FG 7.280 .280 P10.000 x 1.000 9.60 Total abnormal spoilage 5.150 = 7.000 1.50 Conversion costs 16.60 Total EWIP 20.35 Material B 0 Conversion costs 5.50 Conversion costs 84.182 Total costs transferred out 76.60 Costs of normal spoilage 3.

50 P 2.000 40.000 Cost of Normal spoilage 77.45 P 27.000 Normal defective rate x 5% Normal number of spoilage 2.576.800 EUP 48.200) Abnormal spoilage 1.810 3.990 / 40.000 4.000 46. Normal damaged units: (2.000 Units accounted for 48.237.800 1.860 P1.000 Cost added: Material: (2.800 b.000 Less bikes in ending WIP (have not reached the inspection Point so there is no way to determine acceptability) (4.200 2.70) 4.430 Total cost P1.800 Cost per EUP P 35.360 Divided by EUP ÷ 48.495. Total bikes lost 4.660 P 13. In Material Conversion Beginning WIP P 102.000) Bikes reaching the inspection point 44.000 Normal spoilage (2.25) 4.790 P 82.45) P 63.40 .000 Transferred Out 40.000 Ending WIP 4.000 Units to account for 48.000 x P27.418.200 Abnormal spoilage 1.000 ÷ 46.200 2.060 e.800 96. 1.200 x P35.930 Current costs 1.000 40.000 Transferred In 45.678.000) P 37.800 1.000 48.50) P 110.45) P 77.000 ÷ 44.990 2.000 44.200 2.000 800 Normal spoilage 2. Cost of good bikes P1.000 1. Total Trans.45) P1. Therefore: Bikes passing through Assembly 48.840 241. Abnormal damaged units: (1.560 Total EWIP P 119.070 1.200 2.320. Beginning WIP 3. Good units completed: (40.500 P255. 26 Problem 13-10 a.000 Bikes lost 4.800 1.990 Average unit cost: (P1.990 Total costs of transferred out to the Packing Department P1.000 Ending WIP 4.25 P 5.000 40.000 2.495.200 P 6.000 P103.000 x P2.800 c.500 Conversion: (800 x P5. Ending WIP: Transferred In: (4. Units Trans. In Material Conversion Transferred Out 40.70 d.000 4.800 x P35.000 x P35.418.

000 x 0%) 0 From SIP: (7.000 From SIP: (6.000) 6.000 x 25%) 1.000 x 100%) 3.600 Ending WIP: (4. (3.400 6.000 x 20%) 200 From SIP 6.400 Conversion Costs: Completed and transferred out: From BWIP.000 x 0%) 0 Normal lost units: (300 x 100%) 300 Abnormal lost units: (100 x 100%) 100 EUP 6.000 – 3.600 x 100%) 1.000 x 20%) 600 From SIP 3.000 .600 Ending WIP: (1.000 Ending WIP: (4.000 6.000 Normal lost units: (300 x 100%) 300 Abnormal lost units: (100 x 100%) 100 EUP 5. Equivalent Units of Production Cleaning Department: Materials: Completed and transferred out: From BWIP: (1.400 6.000) 3.000 3.400 Ending WIP: (1.000 Conversion Costs: Completed and transferred out: From BWIP: (1.000 Milling Department: Materials: Completed and transferred out: From BWIP: (3. 27 Problem 13-11 1.400 – 1.600 x 25%) 400 Normal lost units: (740 x 100%) 740 Abnormal lost units: (260 x 100%) 260 EUP 8.600 Normal lost units: (740 x 100%) 740 Abnormal lost units: (260 x 100%) 260 EUP 9.

000 .00 Total costs to account for P188.200 = 260 x 20.000 Started in process 9.000 From SIP 128.00 Conversion costs 80.00 Total costs of units transferred out 162. 28 2.600 x 10.000 Cost Schedule Total Costs EUP Unit Costs Beginning WIP P 18.400 x 20. Cleaning Department Cost of Production Report Month of May 1010 Quantity Schedule Units Beginning WIP 1.000 = 1.000 P20.000 = 200 x P10.600 Normal lost units 740 Abnormal lost units 260 Total accounted for 10.400 Ending WIP (Squeeze) 1.000 Cost added this month: Materials 0 Conversion cost 2.000 From SIP 6.000 = P10.400 7.000 Current month: Materials 90.00 Total BWIP 20.000 = 400 x 10.00 Costs accounted for: Completed and transferred out: From BWIP: Cost last month (BWIP) P 18.000 Competed and transferred out: From BWIP 1.800 Ending WIP: Materials 16.00 Total costs of completed units 148.000 Abnormal lost units 5.800 = 740 x 20.000 = 10.000 Normal lost units 14.000 Total to account for 10.000 ÷ 9.000 ÷ 8.00 Conversion cost 4.00 Total EWIP 20.00 Total accounted for P188.000 = 6.

90 Total costs of completed units 196.90 Total costs to account for P307.000 x 32.400 Cost Schedule Total Costs EUP Total Costs Beginning WIP P 89.400 = 1.400 = P22.290 = 100 x 32.870 = 300 x 32.400 Completed and transferred out: From BWIP 3.510 Ending WIP: Transferred in costs 88. 29 Problem 13-11 (continued) Milling Department Cost of Production Report Month of May 2010 Quantity Schedule Units Beginning WIP 3.000 Transferred In from prior department 7.000 6.000 = 9.500 ÷ 5.700 = 3.90 Total EWIP 97.000 Transferred In costs 162.000 = 4.00 Conversion costs 5.90 Cost accounted for: Completed and transferred out: From BWIP: Cost last month P 89.000 Ending WIP (Squeeze) 4.700 P32.00 Cost added: Materials 0 Conversion costs 9.940 From TI 98.900 Abnormal lost units 3.00 Cost added this department: Materials 6.000 Cost added this department: Materials 3.90 Total costs of units transferred out 206.90 Total BWIP 97.000 x P 1.400 Total to account for 10.00 Conversion costs 49.800 ÷ 7.640 Normal lost units 9.000 From TI 3.000 Normal lost units 300 Abnormal lost units 100 Total accounted for 10.000 = 3.90 Total accounted for P307.700 .000 x 9.940 = 600 x 9.400 ÷ 6.000 x 22.900 = 1.