ACC123 – SUMMER 2023 Practice Set

Problem 1

The following information is available for Politik Company for March 2022. All materials are added at the
start of production.

Beginning Work in Process: (80% complete) 8,000 units

Started 35,000 units

Normal spoilage (continuous) 6,000 units

Abnormal spoilage 2,500 units

Ending Work in Process: (55% complete) 15,000 units

Transferred out 19,500 units

Beginning Work in Process Costs:

Material P 14,000

Conversion 45,000

Current Costs:

Material P 50,000

Conversion 175,000

Total Costs P 284,000

Required:

1.1 Prepare a cost of production report for March using FIFO.

1.2 Prepare the cost of production report assuming the weighted average method.

Problem 2

Ghost Stories Company produces yogurt in two departments-Mixing and Finishing. In Mixing, all
ingredients except fruit are added at the start of production. In Finishing, fruit is added and then the
mixture is placed into containers. Adding the fruit to the basic yogurt mixture increases the volume
transferred in by the number of gallons of fruit added. Any spoilage that occurs is in the Finishing
Department. Spoilage is detected just before the yogurt is placed into containers or at the 98 percent
completion point. All spoilage is abnormal.

Finishing Department BWIP (100% fruit, 0% container, 30% CC) 5,000 gallons

Gallons transferred in 5,500

Gallons of fruit added 1,200

EWIP (100% fruit, 0% container, 60% CC) 1,700 gallons

Gallons transferred out 9,000

ACC123 – SUMMER 2023 Practice Set

Abnormal spoilage 1,000

BWIP Costs:

Transferred In P 9,700

Fruit 10,500

CC 15,000

Current Costs:

Transferred In 12,400

Fruit 54,000

Containers 11,000

CC 98,000

Total Costs 210,600

Required:

2.1. Prepare a cost of production report using weighted average method.