SAINT COLUMBAN COLLEGE

College of Business Education

Pagadian City

COST ACCOUNTING AND CONTROL II

PROCESS COSTING (FIFO Method): Even Application of Costs
Practice Questions

Problem 1

PHARSA MANUFACTURING CO. has its product processed in Department A and B. After the goods are
processed in Department A, they are transferred to Department B for additional processing. From
Department B, they are transferred to the stockroom for delivery to customers.

The production data for December 2022 are given below:

Department A Department B
Quantity Data:
In Process, Dec. 1 5,000 units 8,000 units
Stage of Completion 1/5 3/4
Placed in Process 30,000 units
Transferred Out 30,000 units
In Process, Dec. 31 7,000 units ? units
Stage of Completion 2/7 2/5

Cost Data:
In Process, Dec. 1 P 750.00 P 9,481.44
Factory Costs:
Materials P 17,400.00 P 7,920.00
Labor 8,990.00 3,960.00
Factory Overhead 3,480.00 2,640.00

Factory costs are applied evenly throughout the process.

Required:
1. Quantity Schedule
2. Cost of Production Report
3. Journal Entries
4. T-Account for Work-In-Process

Problem 2

YVE CO. operates in two consecutive departments, X and Y. The following information is given on its
December 2022 production:
Department X Department Y
Quantity Data:
In Process, Dec. 1 ? units 16,000 units
Stage of Completion 20% 75%
Placed in Process 70,000 units
Transferred to Stockroom 76,000 units
In Process, Dec. 31 24,000 units 6,000 units
Stage of Completion 25% 75%

Cost Data:
In Process, Dec. 1 P 18,680.00 P 113,400.00
Factory Costs:
Materials P 170,000.00 P 102,750.00
Labor 102,000.00 68,500.00
Factory Overhead 2/3 of Labor 50% of Labor

Factory costs are applied evenly throughout the process.