COst Type

Republic of the Philippines
BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY BUSINESS ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
CITE Building, Pablo Borbon Main 1, Rizal Avenue, Batangas City
COMPILATION OF ACTIVITIES
IN ACC 204
COST ACCOUNTING AND CONTROL
Submitted to:
Maria Concepcion Manalo, CPA
( Instructor)
Submitted by:
Christine M. Punzalan
BSA 2103
December 2019
Table of Contents
Exercise No. Name of the Activity Score

1 Review on Journal Entries and
Preparation of of F.S.
2 Use of Cost Sheets
3 Materials – 5 column Stock Card
4 Cost of Production Report – FIFO
5 Multiple Choice- Weighted Average
Major Examinations/ Name Score

Quizzes
1 Prelims 32/32
2 Midterms 53/70
3 Quiz
4 Finals
COST OF PRODUCTION REPORT- EVEN APPLICATION OF COSTS
Bohol Mfg. Co. operates a single-department factory in the processing of its sole
product. Assignment of unit cost is based on the FIFO method. The following data are
given on its August, 19H production:
Quantity Data:
In process, August 1 8000 units, ¼ done
Placed in Process 70,000 units
In process, August 31 12,000 units, 2/3 done
Cost Data:
In process, August 1 ₱ 1,110
Factory Costs:
Materials 23,760
Labor 15,840
Factory Overhead 12,240
Required:
a. Cost of production report supported by the schedule of equivalent production.

b. T-account for work in process.
MULTIPLE CHOICE
1. Equivalent production under FIFO is computed as follows:

In process, Jan.1 finished
and transferred ……………..... 8000 u. x 3/4 = 6,000
Received, finished and
transferred …………………….. 25,000 u. x 100% = 25,000
In process, Jan. 31………………. 5,000 u. x 1/5 = 1,000
32,000
What should be the equivalent production under the average method?
a. 33,000 b. 34,000 c. 32,000 d. Not given
2. The equivalent production under average costing is arrived at as follows:

Finished and transferred…………. 20,000 u. x 100% = 20,000
In process, Feb. 28……………….. 3,000 u. x 2/3 = 2,000
With beginning work in process consisting of 5,000 units, 1/5 done, what
should be the equivalent production under FIFO?
a. 23,000 b. 21,000 c. 22,000 d. Not giv
3. Under FIFO costing, equivalent production for beginning work in process,

finished and transferred is 6,000 units x 4/5 or 4,800. Which of the
following statements is true?
a. Equivalent production under average costing must be higher by 1,200.
b. Equivalent production under FIFO costing must be higher by 1,200.
c. Equivalent production under average costing must be higher by 4,800.
d. The difference cannot be determined because of inadequate
information.
4. Maurice Company adds materials at the beginning of the process in the

Forming Department, which is the first of two stages of its production cycle.
Information concerning the materials used in the Forming Department in
April, 19M is as follows:
Materials
Units Cost
Work in process, April 1 12,000 P 6,000
Units started in April 100,000 51,120
Units completed and transferred
to next department in April 88,000
Using the weighted-average method, what was the materials cost of the
work in process as of April 30, 19M?
a. P6,120 b. P11,040 c. P12,240 d. P12,269
5. Sussex Corporation’s production cycle starts in the Mixing Department.

The following information is available for the month of May, 19M:
Units
Work in process, May 1 (50% complete) 40,000
Started in May 240,000
Work in process, May 31 (60% complete) 25,000
Materials are added at the beginning of the process in the Mixing

Department. Using the weighted-average method, what are the equivalent
units of production for the month of May?
Materials Conversion Cost
a. 240,000 250,000
b. 280,000 270,000
c. 270,000 280,000
d. None of the above
6. Information for the month of June concerning Department A, the first stage
of Wit Corporation’s productive cycle, is as follows:
Conversion
Materials Costs
Work in process, beg………. P 4,000 P 3,000
Current costs………………… 20,000 16,000
Total costs…………………… P24,000 P 19,000
Equivalent units based on
weighted-average method… 100,000 95,000
Average unit costs…..……..... P 0.24 P 0.20
Goods completed 90,000 units
Work in process, end 10,000 units
Materials are added at the beginning of the process. The ending work in
process is 50% complete as to conversion costs. How would the total cost
accounted for be distributed, using the weighted-average method?
Goods Work in
Completed Process, end
a. P 39,600 P 3,400
b. P 39,600 P 4,400
c. P 43,000 P 0
d. None of the above
7. Roy Company manufactures Product X in a two-stage production cycle in

Departments A and B and uses the weighted average method. Materials
are added at the beginning of the process in Department B. Conversion
costs for Department B were 50% complete as to the 6,000 units in the
beginning work in process and 75% complete as to the 8,000 units in the
ending work in process. Twelve thousand units were completed and

transferred out of Department B in February, 19P. An analysis of the costs
relating to work in process (WIP) and production activity in Department B
for February, 19P is as follows:
Costs
Transferred In Materials Conversion
WIP, February 1:
Cost Attached P 12,000 P 2,500 P 1,000
February activity:
Cost Added 29,000 5,500 5,000
The Total cost per equivalent unit transferred out for February, 19P of
Product X, rounded to the nearest centavo, was:
a. P2.75 b. P2.78 c. P2.82 d. P2.85
8. The addition of water at the start of the process in Dept. B of Jolly Mfg. Co.
increases the quantity by 5%. The following data pertain to its production
for March, 19E:
Quantity data:
In process, March 1………………………. 12,000 u., 1/4 done
Transferred in……………………………... 80,000 u.
In process, March 31……………………… 10,000 u., 2/5 done
Cost data:
In process, March 1…………………........ P 17,735
Breakdown:
Cost from Dept. A…………… P 11,800
Cost in Dept. B:
Materials………………….. 3,125
Labor……………………… 1,490
Factory Overhead……….. 1,320
Transferred in…………………………….. 86,120
Cost added in September:
Materials……………………………. 21,835
Labor………………………………… 43,510
Factory overhead…………………... 34,680
Materials are added at the start of the process while conversion costs are
applied evenly.
Using the weighted-average method, what should be the accumulated cost

of work process as of March 31?
a. P16,400 b. P8,720 c. P21,800 d. Not given
9. Dex Co. had the following production for the month of June:
Units
Work in process at June 1 10,000
Started during June 40,000
Completed and transferred to
finished goods 33,000

Abnormal spoilage incurred 2,000
Work in process at June 30 15,000
Materials are added at the beginning of the process. As to conversion cost,

the beginning work in process was 70% completed while ending work in
process is 40% completed. Spoilage is detected at the end of the process.
Using the weighted average method, the equivalent units for June, with r
espect to conversion cost, were:
a. 41,000 b. 44,000 c. 45,000 d. 46,000
10. The Muscovado Mfg. Co. operates three producing departments, A,

B, and C. It uses the weighted –average costing method. The following
data are on the production of Department B for October, 19Y:
Added in Department B
Trans- Conversion
Units fer In Materials Cost
In process, Oct. 1 5,000 P 9,900 P 1,020 P 998
Received from Dept. A 20,000 39,010 21,855 21,877
Total 25,000
Transferred out (19,000)
Normal loss (1,000)
Abnormal loss ( 500)
In process, Oct. 31 4,500
Factory costs are applied evenly throughout the process.
Beginning work in process was 20% done while ending work in process is
3/4 done. Abnormal loss occurred at the end of the process.
What should be the accumulated cost of work in process as of October 31

if the normal loss occurred during process (with adjustment for lost units
based on remaining good units)?
a. P16,213 b. P15,938 c. P16,213 d. Not given
11. What would be your answer in no. 10 above if the normal loss
occurred at the end of the process?
a. P15,288 b. P15,570 c. P16, 876 d.Not given

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Republic of the Philippines

BATANGAS STATE UNIVERSITY

Exercise No. Name of the Activity Score

2 Use of Cost Sheets

3 Materials – 5 column Stock Card

4 Cost of Production Report – FIFO

5 Multiple Choice- Weighted Average

Major Examinations/ Name Score

COST OF PRODUCTION REPORT- EVEN APPLICATION OF COSTS

In process, August 1 8000 units, ¼ done

Placed in Process 70,000 units

In process, August 31 12,000 units, 2/3 done

In process, August 1 ₱ 1,110

Factory Overhead 12,240

a. Cost of production report supported by the schedule of equivalent production.

1. Equivalent production under FIFO is computed as follows:

What should be the equivalent production under the average method?

a. 33,000 b. 34,000 c. 32,000 d. Not given

2. The equivalent production under average costing is arrived at as follows:

a. 23,000 b. 21,000 c. 22,000 d. Not giv

3. Under FIFO costing, equivalent production for beginning work in process,

4. Maurice Company adds materials at the beginning of the process in the

5. Sussex Corporation’s production cycle starts in the Mixing Department.

Materials are added at the beginning of the process in the Mixing

7. Roy Company manufactures Product X in a two-stage production cycle in

ending work in process. Twelve thousand units were completed and

Using the weighted-average method, what should be the accumulated cost

finished goods 33,000

Materials are added at the beginning of the process. As to conversion cost,

10. The Muscovado Mfg. Co. operates three producing departments, A,

Factory costs are applied evenly throughout the process.

What should be the accumulated cost of work in process as of October 31

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