Goode Manufacturing has three producing departments in its factory.

The ending inventory in the Milling Department

consisted of 3,000 units. These units were 60% complete with respect to labor and factory overhead. Materials are
applied at the end of the milling process. Unit costs for the complete process in the Milling Department are: materials,
P1; labor, P2; and factory overhead, P3. The appropriate unit cost for each unit in the ending inventory is:

DM 1
DL 2
MOH 3 (5*60%) = P3*3,000 = P9,000
TMC 6
Cost/unit P3

Read, Inc. instituted a new process in October. During October, 10,000 units were started in Department A. Of the units started,
7,000 were transferred to Department B, and 3,000 remained in work in process at October 31. The work in process at October 31
was 100% complete as to material costs and 50% complete as to conversion costs. Materials costs of P27,000 and conversion costs
of P39,950 were charged to Department A in October. What were the total costs transferred to Department B?

EUP – Economic Unit of Production

DM CC DM CC

WIP, Beg 0
Started 10,000
Trans-out 7,000 100% 100% 7,000 7,000
WIP,end 3,000 100% 50% 3,000 1,500
EUP 10,000 8,500
Cost P27,000 P39,950 = P66,950
Cost/EUP P2.7 P4.7

Cost of Trans-out
DM (7,000*P2.7)= P18,900
CC (7,000*4.7) = P32,900
Cost of Trans Out P51,800

Cost of WIP,End
DM (3,000*2.7) = P8,100
CC (1,500*4.7)= 7,050
Cost of WIP,End P15,150
 1.Weighted verage
2.FIFO (first-in, first-out)

Dover Corporation's production cycle starts in the Mixing Department. The following information is available for April:

.................................................................................................................... Units
Work in process, April 1 (50% complete).................................................................................. 40,000
Started in April .................................................................................................................... 240,000
Work in process, April 30 (60% complete)............................................................................... 25,000

DM CC
WIP, Beg P50,000 P70,000
Current Cost 100,000 150,000
P150,00 P220,000

Materials are added at the beginning of the process in the Mixing Department. Using the average cost method, what are the
equivalent units of production for the month of April;1. Cost of Trans-out, Cost of Ending
DM CC DM CC

WIP, Beg 40,000 100% 50%

Started 240,000
Trans-out 255,000 100% 100% 255,000 255,000
WIP,End 25,000 100% 60% 25,000 15,000
EUP 280,000 270,000
Cost P150,000 P220,000
Cost/EUP P1.87 P1.23

Cost of Trans-out
DM (255,000*P1.87) = P476,850
CC (255,000*1.23) = P313,650
TOTAL = P790,500

Cost of WIP,End
DM (25,000*1.87) = P46,750
CC (15,000*1.23) = P 18, 450
TOTAL = P65,200

Information concerning Department A of Neeley Company for June is as follows:

Materials
Units Costs
Beginning work in process.............................................................. 17,000 P12,800
Started in June................................................................................ 82,000 69,700
Units completed............................................................................... 85,000 P82,500
Ending work in process................................................................... 14,000

All materials are added at the beginning of the process. Using the average cost method, the cost per equivalent
unit for materials is:
1. Cost ng Trans Out (85000*1.2) = P102,000
2. Cost of WIP, End (14,000*1.2) = P16,800

WIP,Beg 17,000
Started 82,000
Trans-out 85,000 85,000
WIP,End 14,000 14,000
EUP 99,000
Cost/EUP P1.2

Kennedy Company adds materials in 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
October is as follows:
 Materials
Units Costs
Work in process, October 1............................................................. 6,000 P 3,000
Units started.................................................................................... 50,000 25,560
Units completed and transferred out............................. 44,000
WIP, end........................................................................... 12,000

Using the average cost method, what was the materials cost of work in process at October 31?

5\
Simpson Co. adds materials at the beginning of the process in Department M. The following information pertains
to Department M's work in process during April:

Units
Work in process on April 1
(60% complete as to conversion cost).......................................................... 3,000
Started in April....................................................................................................... 25,000
Completed in April................................................................................................. 20,000
Work in process on April 30
 (75% complete as to conversion cost).......................................................... 8,000
DM CC
WIP, Beg P56,000 70,000
Current Cost P120,000 80,000

Under the average costing method, Cost of Trans out and Cost of WIP,End ?

During March, Quig Company's Department Y equivalent unit product costs, computed under the average cost
method, were as follows:

Materials.............................................. P1
Conversion........................................... 3
Transferred-in...................................... 5

Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as
to conversion costs) in work in process at March 31. The total costs assigned to the March 31 work in process
inventory should be:

Connor Company computed the flow of physical units completed for Department M for the month of March as
follows:
Units completed:
From work in process on March 1..................................................................... 15,000
From March production...................................................................................... 45,000
Total............................................................................................................ 60,000

Materials are added at the beginning of the process. The 12,000 units of work in process at March 31 were
80% complete as to conversion costs. The work in process at March 1 was 60% complete as to conversion
costs. Using the fifo method, the equivalent units for March conversion costs were:

The Hilo Company computed the physical flow of units for Department A for the month of April as follows:

Units completed:
From work in process on April 1....................................................................... 10,000
From April production........................................................................................ 30,000
Total............................................................................................................ 40,000

Materials are added at the beginning of the process. Units of work in process at April 30 were 8,000. The work
in process at April 1 was 80% complete as to conversion costs, and the work in process at April 30 was 60%
complete as to conversion costs. What are the equivalent units of production for the month of April using the fifo
method? Cost of Trans-out, Cost of WIP, End?
Department A is the first stage of Mann Company's production cycle. The following information is available for
conversion costs for the month of April:

...................................................................................................................... Units
Beginning work in process (60% complete)........................................................... 20,000
Started in April........................................................................................................ 340,000
Completed in April and transferred to Department B.............................................. 320,000
Ending work in process (40% complete)................................................................ 40,000

Materials are added at the start of the process. Compute for equivalent units for the conversion cost calculation
using:
1. Weighted Average Method
2. FIFO