WESLEYAN UNIVERSITY – PHILIPPINES

College of Business and Accountancy

Cabanatuan City

Quiz 1

 
SURNAME FIRST NAME MIDDLE NAME SCORE
     
 
COURSE YEAR BLOCK
     
PERMIT NO. DATE NAME OF PROFESSOR 30
AC 7 – Strategic Cost Management

Problem 1 Problem 4

1.__________________ 13.__________________

2.__________________ 14.__________________
Instructions: Supply the correct answers on each given questions. Erasures
3.__________________
on the FINAL ANSWERS are not allowed. 15.__________________

4.__________________

Problem 2

5.__________________

6.__________________

7.__________________

8.__________________

Problem 3

9.__________________

10._________________

11._________________

12._________________

PROBLEM 1.
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Execration Company manufactures components using continuous processing
operations. There were 700 units on hand at the beginning of the month costing
P42,500 for Materials and P97,850 for Conversion Costs. These were 90% complete
as to materials, and 60% complete as up conversion cost. During the month 12,000
units were added to production with material costs of P252,500. Conversion cost
during the month were P168,300. At the end of the month, the components which
have not been completed totaled to 500 units which were 100% complete as to
materials and 40% as to conversion cost. Materials are added at the end of the
process. What were the:

A. EUP using FIFO and Weighted Average

B. Unit Cost for Materials and Conversion Cost using FIFO and Weighted Average

C. Cost of Goods Transferred out using FIFO and Weighted Average

D. Cost of Ending Work in Process using FIFO and Weighted Average

PROBLEM 2.

Team Awa produces materials using process costing method. At the end of August,
the Ending Work In Process were 4,000 units costing P12,250 for materials and
P27,900 for conversion costs. During the month of September, 16,000 units were
started into production. Eight Hundred abnormal units are incurred then
discovered at 50% rate of completion. 16,200 units were transferred out to
finished goods while 2,000 units were left for further processing. Costs incurred
during the month were P89,700 for materials and P102,600 for conversion costs.
What were the:

A. Using FIFO and Weighted Average what is the EUP for Materials and Conversion
Costs.

B. Using FIFO and Weighted Average what is the unit cost for Materials and
Conversion Costs.

C. Using FIFO and Weighted Average what is the cost of goods transferred out.

D. Using FIFO and Weighted Average what is the cost of Ending Work In Process.

PROBLEM 3.

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Complexity Corp. uses process costing method for its production of microchips
being used by some telecom companies for their mobile phones. During the month of
December, they produced 27,000 units of microchips which were already purchased
and delivered by its main customers. They put 15,000 units into process during
the month of the production. But they had a beginning WIP of 17,000 units that
were processed further. Ending Work in Process for the month were 3,500 units.
Two Thirds of the spoiled units were considered to be incurred within the normal
operations of the company. Materials are added at the end of the production and
ending work in process were 30% incomplete as to conversion. Find the following:

A. Using FIFO, what is the EUP for Materials

B. Using FIFO, what is the EUP for Conversion Costs

C. Using Weighted Average, what is the EUP for Materials

D. Using Weighted Average, what is the EUP for Conversion Costs

PROBLEM 4.

Department A is the first stage of Mid or Feed Co.’s production cycle. The
following information is available for conversion costs for the month of
November:

Beginning work in process (60% complete) 16,000 units

Started in November 24,000 units
Completed in November and Transferred out 35,000 units
Ending work in process (40% complete) 4,000 units

Costs incurred this month were P327,000 while the beginning work in process costs
were P48,000.

A. What is the EUP for Conversion Costs Using FIFO?

B. What is the EUP for Conversion Costs using Weighted Average Method?
C. What is the unit cost using FIFO and Weighted Average?

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