Accounting 108 (Process Costing)

Name ______________________________ Course & yr. ________ Schedule _______________ Score ___________

Instruction: Give the requirements accordingly with supporting computation/s.

1. On November 1, Yankee Company had 20,000 units of work in process in Department No. 1 that were 100% complete
with respect to materials costs and 20% complete with respect to conversion costs. During November, 160,000 units
were started in Department No. 1 and 170,000 units were completed and transferred to department No. 2. The work in
process on November 30, was 100% complete with respect to material costs and 40% complete with respect to
conversion costs.
Required: By what amount would be equivalent units of production for conversion costs for the month of November
differ (increase or decrease) if the FIFO method were used instead of the weighted-average method? ______________

2. Fabian Company uses the weighted-average method in its process costing system. The Assembly department started the
month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion
costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in
the assembly department. During the month 87,000 units were completed in the assembly department and transferred to
the next processing department. There were 12,000 units in the ending work in process of the Assembly department
that were 20% complete with respect to conversion costs.
Required: What were the equivalent units of production for conversion costs in the assembly department for the
month? ___________________

3. Narver Company uses the weighted average method in its process costing system. Operating data for the Lubricating
department for the month of October appear below:
Units Percentage complete
Beginning work in process inventory 6,600 60%
Transferred in from the prior department during October 40,100
Completed and transferred to the next department during October 37,100
Ending work in process inventory 9,600 80%
Required: What were the equivalent units of production for conversion costs for October? _______________

4. Black Company uses the weighted average method in its process costing system. The company’s ending work in process
inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labor and
overhead. If the total value of the inventory is P60,000 and the cost per equivalent unit for labor and overhead is
P8.00, the cost per equivalent unit for materials must be __________________

5. Department 2 is the second of three sequencial processes. All materials are added at the beginning of processing in
department 2. During October, department 2 reported the following data:
Number of Conversion costs
Units __ Percentage Complete
Units started 60,000 -
Completed and transferred 50,000 -
Work in process, October 1 26,000 60%
Work in process, October 31 36,000 20%
Costs for October: Transferred In Materials Conversion costs
Work on process, October 1 P45,000 P25,000 P54,000
Added during the month P81,000 P115,000 P315,000
The company uses the weighted average method in its process costing system.
Required: The cost per equivalent unit of the production for conversion costs would have been to the nearest cent: ____

6. Overland, Inc., uses the weighted-average method in its process costing system. The company’s work in process
inventory on April 30 consists of 25,000 units. The units in the ending inventory are 100% complete with respect to
materials and 75% complete with respect to conversion costs. If the cost per equivalent unit is P3.00 for materials and
P5.50 for conversion costs, the total cost in the April 30 work in process inventory is ________________

7. Sarver Company uses the weighted-average method in its process costing system. The Fitting Department is the second
department in its production process. The data below summarize the department’s operations in March.
Units Percentage complete
Beginning work in process inventory 7,100 70%
Transferred in from the prior department during March 61,000
Ending work in process inventory 4,600 30%
The Fitting Department’s production report indicates that the cost per equivalent unit for conversion cost for March
was P8.24.
Required: How much conversion cost was assigned to the units transferred out of the Fitting Department during
March? _____________________
8. Ogden Company uses the weighted-average method in its process costing system. Information for the month of
January concerning Department A, the first stage of the company’s production process, follows:
Materials Conversion Costs
Work in process, beginning P8,000 P6,000
Current added during January P40,000 P32,000
Equivalent units of production 100,000 95,000
Cost per equivalent unit P 0.48 P0.40

Units completed and transferred to the

next department 90,000 units
Work in process, ending 100,000 units
Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to
conversion costs.
Required: What cost would be recorded for the ending work in process inventory? _________________

9. Trapp Company uses the weighted-average method in its process costing system. The beginning work in process
inventory in its painting department consisted of 3,000 units that were 70% complete with respect to materials and 60%
complete with respect to conversion cost. The cost of the beginning work in process inventory in the department was
recorded as P10,000 during the period, 9,000 units were completed and transferred to the next department. The costs
per equivalent unit for the period were P2.00 for material and P3.00 for conversion costs.
Required: The cost of units transferred out during the month was ______________

10. Strap company uses the weighted-average method in its process costing system. The company has only one processing
department. The ending work in process consists of 10,000 units, 60% complete with respect to materials. The total
value of this inventory is P38,000. The cost per equivalent unit are P5.00 for materials and P4.00 for conversion costs
for the period.
Required: With respect to conversion costs, the ending work in process inventory percentage of completion is
________________

11. Rariton company uses weighted-average method in its process costing system. The Molding department is the second
department in its production process. The data below summarize the department’s operations in January:
Units Percentage complete
Beginning work in process inventory 4,800 60%
Transferred in from the prior department during January 78,000
Complete and transferred to the next department during January 80,900
Ending work in process inventory 1,900 40%
The Molding Department’s production report indicates that the cost per equivalent unit for January was P5.37.
Required: How much conversion cost in the molding department for January? _______________

12. Ebis Company uses the FIFO method in its process costing system. The first processing department, the Welding
Department, started the month with 13,000 units in its beginning work in process inventory that were 10% complete
with respect to conversion costs. The conversion cost in this beginning work in process inventory was P12,610. An
additional 89,000 units were started into production during the month. There were 22,000 units in the ending work in
process inventory of the Welding Department that were 30% complete with respect to conversion costs. A total of
P806,085 in conversion costs were incurred in the department during the month.
Required: What would be the cost per equivalent unit for conversion cost for the month? _______________

13. Marten Company uses the FIFO method in its process costing system. Operating data for the Casting Department for
the month of September appear below:
Units Percentage Complete
Beginning work in process inventory 19,000 80%
Transferred in from the prior department during September 74,000
Ending work in process inventory 17,000 90%
According to the company’s records, the conversion cost in beginning work in process inventory was P83,600 at the
beginning of September. Additional conversion costs of P427,682 were incurred in the department during the month.
Required: What would be the cost per equivalent unit for conversion costs for September? _______________

14. Carson Company uses the FIFO method in its process costing system. The assembly department started the month with
6,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. An
additional 74,000 units were transferred in from the prior department during the month to begin processing in the
assembly department. There were 8,000 units in the ending work in process inventory of the assembly department that
were 60% complete with respect to conversion costs.
Required: What were the equivalent units of production for conversion costs during the month? ________________

15. Karmen Company uses the FIFO method in its process costing system. Operating data for the Enameling Department
for the month of May appear below:
Units Percentage complete
Beginning work in process inventory 2,400 40%
Transferred in from the prior department during May 87,000
Ending work in process inventory 8,600 60%
 Required: What were the equivalent unit of production for conversion costs in May? _______________

16. Creer Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the
beginning of January, that were 40% complete with respect to conversion costs. All materials are added at the
beginning of the process in Department A. The January 1 work in process inventory in department A contained
P10,000 in materials cost and 11,600 in conversion costs. During January, material cost were P0.50 per equivalent unit
and conversion costs were P1.50 per equivalent unit. All of the units in the beginning work in process inventory were
completed and transferred out during the month.
Required: What was the total cost attached to these units when they were transferred to the next department? ________

17. Mukluk Company uses the FIFO method in its process costing system. The conversion cost for the month of April is
P5.00 per equivalent unit and the material cost is P2.90 per equivalent unit. At the beginning of the month, 1,000 units
were in process that were 100% complete with respect to materials and 30% complete with respect to conversion, with
a total cost at that point of P2,400.
Required: If these units are fully complete by the end of the month, their total cost will be ________________

18. Index Company uses the FIFO method in its process costing system. The first processing department, the forming
department, started the month with 17,000 units in its beginning work in process inventory that were 10% complete
with respect to conversion costs. The conversion cost in this beginning work in process inventory was P9,010, and
additional 76,000 units were started into production during the month and 83,000 units were completed and transferred
to the next processing department. There were 10,000 units in the ending work in process inventory of the Forming
Department that were 70% complete with respect to conversion costs. A total of P445,915 in conversion costs were
incurred in the department during the month.
Required: What would be the cost per equivalent unit for conversion costs during the month? _______________

19. Qart Company uses the FIFO method in its process costing system. Operating data for the Cutting department for the
month of March appear below:
Units Percentage Complete
Beginning work in process inventory 4,500 20%
Transferred in from the prior department during March 74,000
Completed and transferred to the next department during March 74,500
Ending work in process inventory 4,000 60%
According to the company’s records, the conversion cost in beginning work in process inventory was P1,656 at the
beginning of March. Additional conversion costs of P129,960 were incurred in the department during the month.
Required: What would be the cost per equivalent unit for conversion costs for March? ____________

20. Roger Company uses the FIFO method in its process costing system. The following data are taken from the accounting
records of a particular department for June:
Beginning work in process inventory:
Cost P17,500
Units 20,000 units
Percentage completion:
Materials 100%
Conversion 60%
Units completed and transferred out 75,000 units
Cost per equivalent unit:
Material P1.75
Conversion P0.50
Required: The cost of the 75,000 units transferred out of the department during June is ____________________

21. In March, Department B transferred to Department C, 100,000 units costing P450,000. In addition to the above,
Department C provided the following data:

In process, beginning:
10,000 units 1/5 completed P47,010
6,000 units 5/6 completed 30,807

During the month, Department C transferred to stockroom 96,000 units, while 2,000 units are finished and on
hand. Remainder is divided as follows:
One-third is 40% complete
Two-third is 60% complete

Cost incurred during the month consist of materials P45,720, labor P15,090, and overhead P18,108. Materials are
added 50% at the start of the process and 50% at the end of the process.
Labor and overhead are applied uniformly to production.

Required: With supporting schedule of cost of production report give the following:
1. EUP materials _____________ 5. Manufacturing cost per unit ______________
2. EUP conversion ____________ 6. Total cost of WIP, beginning _____________
3. Unit material cost ___________ 7. Total cost completed and transferred ___________
4. Unit conversion cost _________ 8. Total cost of WIP, end ______________
22. The OXO Inc. Manufactures its product in two successive departments, namely A and B. During the month of
December, department A transferred to department B 20,000 units costing P24,600.

Records of Department B showed for December:

Units in process, December 1 5,000
Received from department A 20,000
Units transferred to the storeroom 19,000
Units remaining in department 6,000

Cost of the work in process, December 1 P8,462.00

Cost added during the month:
Materials P8,618.40
Labor 7,760.00
Manufacturing overhead 7,546.60
Investigation showed:
1. That the work in process beginning is two-fifths completed in November.
2. That Labor and Overhead in Department B were applied evenly the process while materials were added as
follows: One-fifth at the start of the process; three-tenths when the process is one-third completed; two-fifths
when the process is three-fifths completed; and the balance when the process is three-fourths completed.
3. That one-third of the remaining units are one-fourth completed; one half is one-half completed; and the
balance is two-fifths completed.

Required: With supporting schedule of cost of production report compute the following:
1. EUP materials ________________
2. Manufacturing cost per unit ________________
3. Total cost of the units completed ________________
4. Unit cost transferred ________________
5. Total cost of Work-in-process end ________________
Key:
1. 4,000 decrease
2. 89,400
3. 44,780
4. P10.00
5. P6.45
6. 178,125
7. 523,240
8. 6,800
9. 45,000
10. 20% complete
11. 438,514.20
12. 9.450
13. 5.620
14. 75,600
15. 85,000
16. 39,600
17. 5,900
18. 5.050
19. 1.710
20. 145,250

21. 1. 99,000 5. .79

2. 100,600 6. 84,467
3. .46 7. 507,667
4. .33 8. 88,308

22. 1. 18,900
2. 1.245
3. 46,619
4. 2.4536
5. 10,368