PROCESS COSTING SEATWORK/ASSIGNMENT

Weighted Average. Manny Cabinet Company manufactures a single model of commercial prefabricated
wooden cabinet. The company uses a process cost system with an average cost flow assumption. It
maintains a separate work in process account for each of its two producing departments: Cutting and
Assembly. The basic cabinet components are cut out of woof in the Cutting Department and then
transferred to the Assembly Department, where they are put together with the additional hinges and
handles purchased from outside vendors. Data related to manufacturing operations in August are:

Cutting Assembly
Units in Beginning 200 250
Units started in Process 600 ?
Units transferred to the next department 650 800
Ending Inventory 150 (90%, 60%, 60%) 100 (40%, 20%, 20%)
Beginning Inventory Cost DM – P5,365; DL – P530; OH - TI – P17,410; DM – P3,451; DL –
P795 P3,611; OH – P3,611
Current Period Cost DM – P26,035; DL – P8,350; DM – P14,273; DL – P20,989; OH
OH – P12,525 – P20,989

Weighted Average. Ramil Tool Corporation manufactures a single model of commercial cutting tool. The
product is cast from molten steel in the Casting Department, and then it is transferred to the Finishing
Dept., where it is ground and polished. Data related to December operations are:

Casting Finishing
Units in Beginning 1,000 1,500
Units started in Process 8,000
Units transferred to the next 7,500 7,000
department
Ending Inventory 1,500 (Mat – 100%, CC – 2,000 (DL – 40%; OH –
80%) 50%)
Beginning Inventory Cost DM – P915; DL – P60; OH – TI – P4,785; DM – P0; DL –
P90 201; OH – P555
Current Period Cost DM – P17,085; DL – P4,290; DM – P0; DL – P2,919; OH
OH – P6,435 – P3,125
FIFO. Downtown Manufacturing Company manufactures a single model of a portable work bench. The
company uses a process cost system, with a FIFO cost flow assumption, and it maintains a separate work
in process account for each of its two producing departments, Cutting and Assembly. The work bench
components are cut out of weed and metal in the Cutting Department and then transferred to the
Assembly Department, where they are put together with the addition of springs, hinges, and handles
purchased from outside vendors. Data related to operations in October are:

Cutting
Units in Beginning 1,000 (90%,40%,20%)
Units started in Process 9,000
Units transferred to the next 8,500
department
Ending Inventory 1,500 (100%,80%,100%)
Beginning Inventory Cost DM – P8,010; DL – P1,750;
OH – P790
Current Period Cost DM – P81,900; DL – P18,600;
OH – P39,200
Assembly
1,000 (75%,60%,60%)
9,500
1,000 (60%,40%,40%)
TI – P4,000 DM – P400; DL
– P800; OH – P1,600
DM – P30,100; DL –
P21,315; OH – P30,015