PROCESS COSTING SAMPLE QUESTIONS (ADAPTED)

PROBLEM 1
Creative Colors Paint Company placed 315,000 gallons of direct materials into the mixing process. All direct materials
are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. The initial
forecast for the end of the month was to have 75,000 gallons still in process, 15% converted as to labor and factory
overhead.

Calculate the following:

1. EUP’s for direct materials assuming there was no beginning inventory.
2. EUP’s for conversion cost assuming there was no beginning inventory.

PROBLEM 2
Ampco Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the
process. The following was data for August 2015:

Work in process, beginning inventory 100,000 units

Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (90% complete)

Transferred in during current period 300,000 units

Completed and transferred out 250,000 units

Work in process, ending inventory ?

Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)

Calculate the following:

3. EUP’s for direct materials using weighted average method.
4. EUP’s for Trans-In using FIFO method.
5. EUP’s for conversion costs using the FIFO method.

PROBLEM3
Morgan Models Company manufactured replica plastic airplane and motorized vehicle models. During October, the
firm's Assembly Department started production of 60,000 models. During the month, the firm completed 66,000
models, and transferred them to the Finishing Department. The firm ended the month with 22,000 models in ending
inventory. There were 28,000 models in beginning inventory. All direct materials costs are added at the beginning of
the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method
of process costing is used by Morgan. Beginning work in process was 25% complete as to conversion costs, while
ending work in process was 50% complete as to conversion costs.

Beginning inventory:
Direct materials costs P39,200
Conversion costs P30,800

Manufacturing costs added during the accounting period:

Direct materials costs P90,000
Conversion costs P280,000

6. Physical units that were started and completed during October?

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PROCESS COSTING SAMPLE QUESTIONS (ADAPTED)

PROBLEM4
The Delectable Delights Company has two processing departments, Cooking and Packaging. Ingredients are placed
into production at the beginning of the process in Cooking, where they are formed into various shapes. When finished,
they are transferred into Packaging, where the candy is placed into heart and tuxedo boxes and covered with foil. All
material added in Packaging is considered as one material for convenience. Since the boxes contain a variety of
candies, they are considered partially complete until filled with the appropriate assortment. The following information
relates to the two departments for February 2017:

Cooking Department:
Beginning WIP (30% complete as to conversion) 4,500 units
Units started this period 15,000 units
Ending WIP (60% complete as to conversion) 2,400 units
Packaging Department:
Beginning WIP (90% complete as to material, 80% complete as to 1,000 units
conversion)
Units started during period ?
Ending WIP (80% complete as to material and 80% complete as to 500 units
conversion)

Required:
7. Determine equivalent units of production for both departments using the weighted average method.
8. Determine equivalent units of production for both departments using the FIFO method.

PROBLEM5
The Laramie Factory produces expensive boots. It has two departments that process all the items. During January, the
beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to
direct materials. The beginning inventory included P6,000 for materials and P18,000 for conversion costs. Ending
work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning
of the process.

Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories
included P7,000 for transferred-in costs and P10,000 for conversion costs. Ending inventory was 30% complete.

Additional information about the two departments follows:

Tanning Finishing
Beginning work-in-process units 5,000 4,000
Units started this period 14,000 ?
Units transferred this period 16,000 18,000
Ending work-in-process units ? 2,000

Material costs added P18,000 0

Conversion costs 32,000 P19,000
Transferred-out cost 50,000 ?

Using weighted-average costing for the finishing department, compute the following:
9. Equivalent-unit cost for Transferred in.
10. Equivalent-unit cost for Conversion.
11. The total costs of Work-in-Process end.

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PROCESS COSTING SAMPLE QUESTIONS (ADAPTED)

PROBLEM6
MANSON Corporation

Beginning inventory (30% complete as to Material B and 60% complete for conversion) 700 units
Started this cycle 2,000 units
Ending inventory (50% complete as to Material B and 80% complete for conversion) 500 units

Beginning inventory costs:

Material A P14,270
Material B 5,950
Conversion 5,640

Current Period costs:

Material A P40,000
Material B 70,000
Conversion 98,100

Material A is added at the start of production, while Material B is added uniformly throughout the process.

Required:
12. Assuming a weighted average method of process costing, compute EUP units for Materials B.
13. Assuming a FIFO method of process costing, compute EUP units for Materials A.
14. Assuming a weighted average method of process costing, compute EUP for conversion.
15. Assuming a FIFO method of process costing, compute EUP for conversion.

PROBLEM7
General Fabricators assemble its product in several departments. It has two departments that process all units. During
October, the beginning work in process in the assembly department was half completed as to conversion, and complete
as to direct materials. The beginning inventory included P12,000 for materials and P3,000 for conversion costs. Ending
work-in-process inventory in the assembly department was 40% complete. Direct materials are added at the beginning
of the process.

Additional information about the departments follows:

Assembly
Beginning work-in-process units 20,000
Units started this period 40,000
Units transferred this period ?
Ending work-in-process units 10,000
Material costs added P48,000
Conversion costs P24,000

Prepare a production cost worksheet using weighted-average for the assembly department.

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