Chapter 9.2 Process Costing - Average and FIFO

at end of process 3 are the items to be sold to customers.
For February 2021, Masipag Company present

costs on three processes:
Required:
Costs incurred: Process 1 Process 2

Materials 30,000 23,000
Direct Labor 14,800 11,680
Overhead 8,880 8,760
Total 53,680 43,440
50% at the beginning of
the process, and
Materials are added at Beginning of the process.
remaining 50% at 60% of
the process.
Started/Transferred In 6,000 units 5,800 units
300 units, 50% materials,

20% converted. Cost from
200 units, 100% materials, 40% Process 1 is P2,700;
converted. Materials P1,000; Materials P600, Labor
In process, beginning Labor P200; Overhead P120 P120, Overhead P90.
Completed 5,800 units 5,700 Units
In Process, end 400 units 50% complete 400 units 50% complete
Required:
A. Compute the following:
1. Equivalent units of materials and conversion for Process 1, 2 and 3 (6 points)
2. Unit costs of materials, labor and overhead for process 1, 2 and 3 (6 points)
3. Cost of completed and transferred out, and in-process inventories for process 1, 2 and 3. (6 points)
4. Unit costs of completed and transferred goods to process 2, 3 and to finished goods. (3 points)
B. Journalize the transactions for process 1, 2 and 3 (6 points)
C. How much is the total manufacturing cost? Finished Goods Inventory? Work-in Process Invento
ary 2021, Masipag Company presented the following
Process 3
17,145
11,320
8,490
36,955
50% at the beginning of the
process, another 30% at 70%
of the process and the
remaining 20% at 90% of the
process.
5,700
1 is P1650; units P240;
Materials
Labor P160; Overhead P120.
150 units, 50% materials, 60%

converted. Cost from Process
2 is P2475; Materials P225;
Labor P180; Overhead P135.
5,550 Units
400 units at 70% complete
process 1, 2 and 3. (6 points)
inished goods. (3 points)
nventory? Work-in Process Inventory? (3 points)

Cost of Production Report - Average
PROCESS 1
Materials Labor & Overhead
Quantity Schedule Actual Work Done EUP Work Done
Units Started 6,000
In Process, beginning 200
Units Transferred In 0
TUTAF 6,200
Units completed 5,800 100% 5,800 100%

Units in Process 400 100% 400 50%
Units In Process
TUAF 6,200 6,200
Cost charged to the Process:

Cost from preceding process
Cost added in this process: In Process This Month Total
Materials 1,000 30,000 31,000
Labor 200 14,800 15,000
Overhead 120 8,880 9,000
Adjusted for lost units
Total cost to be accounted for 1,320 53,680 55,000
Cost accounted for as follows:

Units completed 5,800
Units In Process, end:
Cost from preceding department
Materials 400
Labor 200
Overhead 200
Subtotal
Total costs as accounted for
PROCESS 2
Labor & Overhead Materials Labor & Overhead
EUP Actual Work Done EUP Work Done
0
300
5,800
6,100
5,800 5,700 100% 5,700 100%

200 400 50% 200 50%
6,000 6,100 5,900
2,700.00 52,200.00 54,900.00

In Process This Month Total
5.00 600.00 23,000.00 23,600.00
2.50 120.00 11,680.00 11,800.00
1.50 90.00 8,760.00 8,850.00
9.00 3,510.00 95,640.00 99,150.00
52,200.00 9.00 5,700
400
2,000.00 200
500.00 200
300.00 200
2,800.00
55,000.00
PROCESS 3
0
250
5,700
5,950
5,700 5,550 100% 5,550 100%

200 400 80% 320 70%
5,900 5,950 5,870
9.00 4,125 94,050 98,175
4.00 465 17,145 17,610

2.00 340 11,320 11,660
1.50 255 8,490 8,745
16.50 5,185 131,005 136,190
94,050.00 16.50 5,550
3,600.00 400
800.00 320
400.00 280
300.00 280
5,100.00
99,150.00
r & Overhead
EUP
5,550
280
5,830
16.50
3.00
2.00
1.50
23.00
127,650.00 23.00
6,600.00
960.00
560.00
420.00
8,540.00
136,190.00
Particulars Debit Credit Remarks
WIP - Process 1 30,000 Materials
WIP - Process 2 23,000 Labor
WIP - Process 3 17,145 Overhead
Raw Materials 70,145 Total Manufacturing Cost
Add WIP, beginning
WIP - Process 1 14,800 WIP, - Process 1 1,320
Accrued Payroll 37,800 Total Cost Put Into Process
WIP - Process 1 2,800
WIP - Process 1 8,880 WIP - Process 2 5,100
WIP - Process 2 8,760 WIP - Process 3 8,540
WIP - Process 3 8,490 Cost of Goods Manufactured (FG)
Applied Factory Overhead 26,130


Finished Goods 127,650

70,145
37,800
26,130
134,075
10,015
144,090
16,440
127,650
Cost of Production Report - FIFO
PROCESS 1
Materials Labor & Overhead
Quantity Schedule Actual Work Done EUP Work Done
Units Started 6,000
In Process, beginning 200
Units Transferred In 0
TUTAF 6,200
Units completed
In Process, beginning & Complete 200 0% 0 60%
Started and Completed 5,600 100% 5,600 100%
Units In Process 400 100% 400 50%
TUAF 6,200 6,000
Cost charged to the Process:

In Process, beginning 1,320.00 1,320.00
Cost from preceding process
Cost added in this process: This Month Total
Materials 30,000 30,000
Labor 14,800 14,800
Overhead 8,880 8,880
Adjusted for lost units
Total cost to be accounted for 55,000 55,000
Cost accounted for as follows:

In Process, beginning & completed 200
Beginning cost 1,320
Materials 0
Labor 300
Overhead 180
Started and Completed 5,600
Units In Process, end:
Cost from preceding department 400
Materials 2,000
Labor 500
Overhead 300
Subtotal
Total costs as accounted for
PROCESS 2
0
300
5,800
6,100
120 300 50% 150 80%

5,600 5,400 100% 5,400 100%
200 400 50% 200 50%
5,920 6,100 5,750
3,510.00 3,510.00
52,200.00 52,200.00
This Month Total
5.00 23,000.00 23,000.00
2.50 11,680.00 11,680.00
1.50 8,760.00 8,760.00
9.00 99,150.00 99,150.00
300
3,510
600
480
1,800.00 9.00 360
50,400.00 9.00 5,400
400 3600
800
400
300
2,800.00
55,000.00
PROCESS 3
0
250
5,700
5,950
240 250 38% 95 68%

5,400 5,300 100% 5,300 100%
200 400 80% 320 70%
5,840 5,950 5,715
5,185.00 5,185.00
9.00 94,050.00 94,050.00
This Month Total
4.00 17,145.00 17,145.00
2.00 11,320.00 11,320.00
1.50 8,490.00 8,490.00
16.50 136,190.00 136,190.00
250
5,185.00
285.00
334.68
4,950.00 251.01
89,100.00 16.50 5,300
400 6600.00
960.00
551.23
413.43
5,100.00
99,150.00
r & Overhead
EUP
170
5,300
280
5,750
16.500000
3.000000
1.968696
1.476522
22.945217
6,055.69
121,609.65 23.002764
8,524.66
136,190.00
Particulars Debit Credit Remarks FIFO
WIP - Process 1 30,000.00 Materials
WIP - Process 2 23,000.00 Labor
WIP - Process 3 17,145.00 Overhead
Raw Materials 70,145.00 Total Manufacturing Cost
Add WIP, beginning
WIP - Process 1 14,800.00 WIP, - Process 1 1,320.00
Accrued Payroll 37,800.00 Total Cost Put Into Process
WIP - Process 1 2,800.00
WIP - Process 1 8,880.00 WIP - Process 2 5,100.00
WIP - Process 2 8,760.00 WIP - Process 3 8,524.66
WIP - Process 3 8,490.00 Cost of Goods Manufactured (FG)
Applied Factory Overhead 26,130.00


Finished Goods 127,665.34

WIP - Process 3 127,665.34
IFO Average
70,145.00 70,145.00
37,800.00 37,800.00
26,130.00 26,130.00
134,075.00 134,075.00
1,320.00
3,510.00
10,015.00 5,185.00 10,015.00
144,090.00 144,090.00
2,800.00
5,100.00
16,424.66 8,540.00 16,440.00
127,665.34 127,650.00

Chapter 9.2 Process Costing - Average and FIFO

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Chapter 9.2 Process Costing - Average and FIFO

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at end of process 3 are the items to be sold to customers.

For February 2021, Masipag Company present

Costs incurred: Process 1 Process 2

Started/Transferred In 6,000 units 5,800 units

300 units, 50% materials,

A. Compute the following:

1. Equivalent units of materials and conversion for Process 1, 2 and 3 (6 points)

B. Journalize the transactions for process 1, 2 and 3 (6 points)

150 units, 50% materials, 60%

400 units at 70% complete

process 1, 2 and 3. (6 points)

inished goods. (3 points)

nventory? Work-in Process Inventory? (3 points)

Units completed 5,800 100% 5,800 100%

Cost charged to the Process:

Cost accounted for as follows:

5,800 5,700 100% 5,700 100%

6,000 6,100 5,900

2,700.00 52,200.00 54,900.00

9.00 3,510.00 95,640.00 99,150.00

52,200.00 9.00 5,700

5,700 5,550 100% 5,550 100%

5,900 5,950 5,870

9.00 4,125 94,050 98,175

4.00 465 17,145 17,610

16.50 5,185 131,005 136,190

94,050.00 16.50 5,550

WIP - Process 2 52,200

WIP - Process 3 94,050

Finished Goods 127,650

Cost charged to the Process:

Cost accounted for as follows:

120 300 50% 150 80%

9.00 99,150.00 99,150.00

240 250 38% 95 68%

16.50 136,190.00 136,190.00

WIP - Process 2 52,200.00

WIP - Process 3 94,050.00

Finished Goods 127,665.34

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