Chapter 9.3 Process Costing - Average and FIFO With Losses

process 3 are the items to be sold to customers.
For February 2021, Masipag Company presented the foll

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

Materials are added at Beginning of the process. process, and remaining 50% at
60% of the process.
Started/Transferred In 6,000 units 5,800 units
300 units, 50% materials, 20%

200 units, 100% materials, 40% converted. Cost from Process 1
converted. Materials P1,000; is P2,700; Materials P600, Labor
In process, beginning Labor P200; Overhead P120 P120, Overhead P90.
Completed 5,800 units 5,700 Units
In Process, end 300 units 50% complete 200 units 50% complete
Normal Loss 100 units, 50% complete. 100 units, 50% complete.
Abnormal loss 100 units, 50% complete.
Quality Control Inspection Made At 60% stage of production. At 60% stage of production.
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
g Company presented the following costs on three
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.
is P1650; 5,700 units

Materials P240; 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
200 units at 70% complete

100 units, 50% complete.
100 units, 50% complete.
At 60% stage of production.
s 1, 2 and 3. (6 points)
goods. (3 points)
ry? 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 300 100% 300 50%
Units lost, 50% complete - normal 100 100% 100 50%
Units lost, 50% complete - abnormal 0
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
Total cost to be accounted for 1,320 53,680 55,000
Cost accounted for as follows:

Units completed 5,800
Factory Overhead - Abnormal
Units In Process, end:
Cost from preceding department
Materials 300
Labor 150
Overhead 150
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%

150 200 50% 100 50%
50 100 50% 50 50%
100 50% 50 50%
6,000 6,100 5,900
2,700.00 52,900.00 55,600.00

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 96,340.00 99,850.00
52,900.00 9.12 5,700

100
200
1,500.00 100
375.00 100
225.00 100
2,100.00
55,000.00
PROCESS 3
0
250
5,700
5,950
5,700 5,550 100% 5,550 100%

100 200 80% 160 70%
50 100 50% 50 50%
50 100 50% 50 50%
5,900 5,950 5,810
9.11 4,125.00 95,990.57 100,115.57
4.00 465.00 17,145.00 17,610.00

2.00 340.00 11,320.00 11,660.00
1.50 255.00 8,490.00 8,745.00
16.61 5,185.00 132,945.57 138,130.57
95,990.57 16.84 5,550

1,286.48 100
1,822.95 200
400.00 160
200.00 140
150.00 140
2,572.95
99,850.00
r & Overhead
EUP
5,550
140
50
50
5,790
16.83
3.03
2.01
1.51
23.38
1,624.09 147.30 98.21 73.66 FG
58.53 4.25 2.48 1.86 WIP
131,709.52
2,010.37 5,550 5,550 5,550 5,550
1,682.61 151.55 100.69 75.52 2,010.37
3,423.75 200 160 140 140
489.21 4343.57 65.11226383 WIP
284.41 129766.26 1945.260456 FG
213.31 134109.83
4,410.68
138,130.57
1,943.26
67.11
2,010.37
Particulars Debit Credit Remarks
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
Factory Overhead
WIP - Process 1 8,880.00 WIP - Process 1 2,100.00
Applied Factory Overhead 26,130.00 Cost of Goods Manufactured (FG)
WIP - Process 2 52,900.00


Finished Goods 131,709.52

WIP - Process 3 131,709.52
FOH Control 3,296.85

WIP - Process 1
70,145.00
37,800.00
26,130.00
134,075.00
10,015.00
144,090.00
3,296.85
9,083.63
131,709.52
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 300 100% 300 50%
Units Lost - Normal 100 100% 100 50%
Units Lost - Abnormal
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
Factory Overhead
Units In Process, end:
Cost from preceding department 300
Materials 1,500
Labor 375
Overhead 225
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%
150 200 50% 100 50%
50 100 50% 50 50%
100 50% 50 50%
5,920 6,100 5,750
3,510.00 3,510.00
52,900.00 52,900.00
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 99,850.00 99,850.00
300
3,510
600
480
1,800.00 9.00 360
51,100.00 9.13 5,400
100
200 1824.137931
400
200
150
2,100.00
55,000.00
PROCESS 3
0
250
5,700
5,950
240 250 38% 95 68%

5,400 5,300 100% 5,300 100%
100 200 80% 160 70%
50 100 50% 50 50%
50 100 50% 50 50%
5,840 5,950 5,655
5,185.00 5,185.00
9.12 95,988.79 95,988.79
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
16.62 138,128.79 138,128.79
250
5,185.00
288.02
337.02
4,950.00 252.77
91,038.79 16.84 5,300
1,287.07 100
200 3426.60
489.34
279.99
209.99
2,574.14
99,850.00
r & Overhead
EUP
170
5,300
140
50
50
5,710
16.840139
3.031830
1.982487
1.486865
23.341321
6,062.81
125,650.98 23.732216
2,009.07 1,684.01 151.59 99.12 74.34 2,009.07
5,550 5,550 5,550 5,550 1625.439517
1,625.44 147.34 96.69 72.51 1,941.98
200 160 140 140 2,009.07
58.57 4.25 2.44 1.83 67.09
4,405.92
138,128.79 143,678.79
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
Accrued Payroll 37,800.00 Total Cost Put Into Process
Factory Overhead Control
Applied Factory Overhead 26,130.00 Cost of Goods Manufactured (FG)


Finished Goods 131,713.80

WIP - Process 3 131,713.80
FOH Control 3,296.14

WIP - Process 1 0.00
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
3,296.14 3,296.85
2,100.00
2,572.95
9,080.06 4,410.68 9,083.63
131,713.80 131,709.52

Chapter 9.3 Process Costing - Average and FIFO With Losses

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Chapter 9.3 Process Costing - Average and FIFO With Losses

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process 3 are the items to be sold to customers.

For February 2021, Masipag Company presented the foll

Costs incurred: Process 1 Process 2

50% at the beginning of the

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

300 units, 50% materials, 20%

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)

50% at the beginning of the

is P1650; 5,700 units

150 units, 50% materials, 60%

200 units at 70% complete

At 60% stage of production.

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

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

TUAF 6,200 6,200

Cost charged to the Process:

Total cost to be accounted for 1,320 53,680 55,000

Cost accounted for as follows:

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

6,000 6,100 5,900

2,700.00 52,900.00 55,600.00

9.00 3,510.00 96,340.00 99,850.00

52,900.00 9.12 5,700

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

5,900 5,950 5,810

9.11 4,125.00 95,990.57 100,115.57

4.00 465.00 17,145.00 17,610.00

16.61 5,185.00 132,945.57 138,130.57

95,990.57 16.84 5,550

WIP - Process 2 52,900.00

WIP - Process 3 95,990.57

Finished Goods 131,709.52

FOH Control 3,296.85

Cost charged to the Process:

Cost accounted for as follows:

120 300 50% 150 80%

9.00 99,850.00 99,850.00

240 250 38% 95 68%

16.62 138,128.79 138,128.79

WIP - Process 2 52,900.00

WIP - Process 3 95,988.79

Finished Goods 131,713.80

FOH Control 3,296.14

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