FANDIALAN. CHRISTIAN MARVIN C.

BSMA 3C - 3rd year

Great Mix Company makes a unique syrup using cane sugar and local herbs.
The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. 
The bottles are sold for P12 each. The first stage in the production process is carried out in the Mixing Departme
which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats.
The company uses the weighted-average method in its process costing system.

A hastily prepared report for the Mixing Department for April appears below:

Quantity Schedule
Units to be accounted for:
Work in process, April 1 (materials 90% complete; conversion
80% complete) 30,000
Started into production 200,000
Total units to be accounted for 230,000

Units accounted for as follows:

Transferred to next department 190,000
Work in process, April 30 (materials 75% complete;
conversion 50% complete) 40,000
Total units accounted for 230,000

Cost Reconciliation
Cost to be accounted for:
Work in process, April 1 ₱ 98,000
Cost added during the month 827,000
Total cost to be accounted for ₱ 925,000

Cost accounted for as follows:

Work in process, April 30 ₱ 805,600

Transferred to next department 119,400

Total cost accounted for ₱ 925,000
 use in desserts. 
carried out in the Mixing Department,
proper proportions in large vats.

Solution:
A. EU Materials = 190,000

30,000 (40,000*75% complete)

220,000

Conversion = 190,000
20,000

210,000

B. COST PER EU Materials = 646,800 (67,800 + 579,000)

Divide it by: 220,000
2.94

Conversion = 278,200 (30,200 + 248,000)

Divide it by: 210,000
1.32

C. UNITS STARTED
AND COMPLETED Started into production 200,000

Units progress at the end of the

month 40,000
Units started and completed 160,000

D. EU - FIFO

Beginning Inventory 10% added

for materials 3,000
Units started and completed 160,000
Ending Inventory 75% added for
materials 30,000 (40,000*75% complete)
EU - FIFO 193,000

Current Period materials cost 579,000

Materials cost per unit 3.00