Process CostExcel Professional Services

Problem 1(a) I.P., beg. 6,000

Received 44,000TOTAL 50,000

MATERIALS CONVERSION

AVERAGE:WD EUP WD EUP

C&T 40,000 100% 40,000 100% 40,000I.P.,end 5,000 30% 1,500Lost unit 5,000 100% 5,000TOTAL 50,000 40,000 46,500

Problem 1

FIFO: MATERIALS CONVERSION

WD EUP WD EUPC&T: I.P.,beg. 6,000 100% 6,000 60% 3,600

Received 34,000 100% 34,000 100% 34,000I.P., end 5,000 30% 1,500Lost units 5,000 100% 5,000TOTAL 50,000 40,000 44,100

I.P., beg. 6,000 Received 44,000

TOTAL 50,000

Problem 1(B)

AVERAGE: MATERIALS CONVERSION

WD EUP WD EUPC&T 32,000 100% 32,000 100% 32,000I.P.,end 6,000 100% 6,000 40% 2,400Lost Unit (normal) 2,000TOTAL 40,000 38,000 34,400

I.P., beg. 10,000Received 30,000TOTAL 40,000

Problem 1(B)

FIFO: MATERIALS CONVERSION

WD EUP WD EUPC&T: I.P., beg. 10,000 70% 7,000 Received 22,000 100% 22,000 100% 22,000 I.P., end 6,000 100% 6,000 40% 2,400 Lost Unit (normal) 2,000TOTAL 40,000 28,000 31,400

I.P., beg. 10,000Received 30,000TOTAL 40,000

Problem 1-C

AVERAGE: MATERIALS CONVERSIONWD EUP WD EUP

C&T 22,000 100% 22,000 100% 22,000I.P., end 5,000 100% 5,000 80% 4,000Lost Unit (abnormal) 3,000 100% 3,000 60% 1,800TOTAL 30,000 30,000 27,800

(c ) I.P., beg. 5,000Received 25,000TOTAL 30,000

Problem 1-C

FIFO: MATERIALS CONVERSION

WD EUP WD EUPC&T: I.P.,beg. 5,000 50% 2,500

Received 17,000 100% 17,000 100% 17,000 I.P., end 5,000 100% 5,000 80% 4,000 Lost Unit (abnormal) 3,000 100% 3,000 60% 1,800

TOTAL 30,000 25,000 25,300

I.P., beg. 5,000Received 25,000TOTAL 30,000

Problem 2 FIFO(DEPT. 1)

Q.S.: I.P.,beg. 6,000 S.I.P. 44,000TOTAL 50,000

(1)EUP: MATERIALS CONVERSION

WD EUP WD EUPC&T: I.P.,beg. 6,000 1/3 2,000

Started in Process 34,000 100% 34,000 100% 34,000I.P.,end 10,000 100% 10,000 3/5 6,000TOTAL 50,000 44,000 42,000

Problem 2

(3)Cost to be accounted for:Cost of I.P., beg. P 5,200Cost added 36,600TOTAL P 41,800

(2)UNIT COST: M: 19,800/44,000 = P0.45 CC:16,800/42,000 = P0.40 36,600 P0.85

Problem 2(4)Cost accounted for as follows:

C&T: from I.P., beg. CLM P 5,200 Cost added: CC (2,000 * 0.40) 800 6,000 from S.I.P. (34,000 * 0.85) 28,900 Total Cost of Completed Units P 34,900

I.P.,end: M (10,000 * 0.45) P 4,500 CC (6,000 * 0.40) 2,400 6,900Total Accounted for P 41,800

Problem 2

(1) EUP MATERIALS CONVERSION

WD EUP WD EUPC&T: I.P.,beg. 5,000 30% 1,500 2/5 2,000Received 32,000 100% 32,000 100% 32,000I.P.,end 8,000 70% 5,600 7/8 7,000TOTAL 45,000 39,100 41,000

DEPT. 2I.P.,beg. 5,000Received 40,000TOTAL 45,000

Problem 2

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. P 10,000Cost transferred in 34,900Cost added 80,719TOTAL P 125,619

(2)Unit Cost:PD: 34,900/40,000 = P 0.8725 M: 34,799/39,100 = 0.89CC:45,920/41,000 = 1.12 115,619 P 2.8825

Problem 2(4)Total Cost Accounted for as follows:

C&T: from I.P.,beg. Cost LM P 10,000 Cost added: M(1,500 * .89) 1,335 CC(2,000 * 1.12) 2,240 P 13,575 from Received (32,000 * 2.8825) 92,240TOTAL COST of COMPLETED UNITS P 105,815

I.P.,end CFPD: 8,000 * .8725= P 6,980 M: 5,600 * .89= 4,984 CC: 7,000 * 1.12= 7,840 19,804TOTAL COST ACCOUNTED for P 125,619

PROBLEM 3: AVERAGE COSTING

(1) EUPMATERIALS CONVERSION

WD EUP WD EUPC&T 30,000 100% 30,000 100% 30,000I.P.,end 5,000 100% 5,000 2/5 2,000TOTAL 35,000 35,000 32,000

I.P.,beg. 15,000Started in P 20,000TOTAL 35,000

PROBLEM 3:(2)Unit Cost:

M (8,145 + 10,860)/35,000= P 0.543

CC (4,365 + 9,843)/32,000= 0.444

12,510 20,703 P 0.987

(3)Total Cost to be Accounted for:Cost of I.P.,beg. P 12,510Cost added 20,703

TOTAL P 33,213

PROBLEM 3:

(4)Cost Accounted for as follows:

C&T: (30,000 * .987) P 29,610I.P.,end: M: 5,000 * .543=2,715 CC: 2,000 * .444=888 3,603

TOTAL P 33,213

PROBLEM 3:

EUP

MATERIALS CONVERSIONWD EUP WD EUP

C&T 31,000 100% 31,000 100% 31,000I.P.,end 8,000 100% 8,000 7/8 7,000TOTAL 39,000 39,000 38,000

COSTING Q.S.: I.P.,beg.

9,000

Received 30,000TOTAL 39,000

DEPT. 2: AVERAGE

PROBLEM 3:(2)Unit Cost:

PD:(29,610 + 9,000)/39,000= P0.99 M:(3,996 + 30 636)/39,000= 0.888CC:(3,330 + 38,850)/38,000= 1.11

TOTAL: 7,326 69,486 P2.988

(3)Total Cost to be Accounted for:

Cost of I.P.,beg. (7,326 + 9,000) P 16,326Cost transferred in 29,610Cost added 69,486TOTAL P 115,422

PROBLEM 3:

(4) Total Cost Accounted for as follows:C&T: 31,000 * 2,988 P 92,628I.P.,end: CFPD: 8,000 * .99= 7,920 M: 8,000 * .888= 7,104 CC: 7,000 * 1.11= 7,770 22,794TOTAL P 115,422

PROBLEM 4: FIFO

I.P.,beg. 10,000Received 40,000TOTAL 50,000

(1)EUP MATERIALS CONVERSIONWD EUP WD EUP

C&T: I.P.,beg. 10,000 1/4 2,500 Received 25,000 100% 25,000 100% 25,000 I.P.,end 10,000 100% 10,000 1/2 5,000 Lost Unit (N) 5,000 100% 5,000 100% 5,000TOTAL 50,000 40,000 37,500

PROBLEM 4:(2)Unit Costs: PD: 140,000/40,000 P 3.50

M: 70,000/40,000= 1.75CC: 292,500/37,500= 7.8

TOTAL: 362,500 P 13.05

(3)Total Cost to be Accounted for: Cost of I.P.,beg. P 140,500

Cost transferred in 140,000Cost added 362,500TOTAL P 643,000

PROBLEM 4(4)Total Accounted for as follows:C&T: I.P.,beg. CLM 140,500 Cost added (2,500 * 7.80) 19,500 160,000 Received (25,000 * 13.05) 326,250Subtotal P 486,250 CNLU (5,000 * 13.05) 65,250TOTAL Cost of Completed Units P 551,500

I.P.,end: CFPD (10,000 *3.50)= P 35,000 M (10,000 * 1.75)= 17,500 CC (5,000 * 7.80)= 39,000 91,500TOTAL COST ACCOUNTED for P 643,000

PROBLEM 4

PROBLEM 4: AVERAGE METHOD

I.P.,beg. 10,000Received 40,000TOTAL 50,000

EUP MATERIALS CONVERSIONWD EUP WD EUP

C&T 35,000 100% 35,000 100% 35,000I.P.,end 10,000 100% 10,000 1/2 5,000Lost Unit (N) 5,000 100% 5,000 100% 5,000TOTAL 50,000 50,000 45,000

PROBLEM 4

(3)Total Cost to be Accounted for:Cost of I.P.,beg. (38,000 + 102,500) P 140,500Cost transferred in 140,000Cost added 362,500TOTAL P 643,000

(2)Unit Cost:PD (140,000 + 38,000)/50,000= P 3.56 M (21,500 + 70,000)/50,000= 1.83CC (81,000 + 292,500)/45,000= 8.3 102,500 362,500 P 13.69

PROBLEM 4

(4)Total Cost Accounted for as follows:C&T: 35,000 * 13.69 P 479,150CNLU(5,000 * 13.69) 68,452TOTAL P 547,600I.P.,end: CFPD: 10,000 * 3.56= 35,600 M: 10,000 * 1.83= 18,300 CC: 5,000 * 8.30= 41,500 95,400TOTAL P 643,000

Problem 5

Received from PD 12,000(1) EUP

MATERIALS CONVERSIONWD EUP WD EUP

C&T 9,000 100% 9,000 100% 9,000I.P.,end 2,000 70% 1,400Lost Unit (N) 450 90% 405Lost Unit (A) 550 90% 495TOTAL 12,000 9,000 11,300

Problem 5

(3)Total Cost to be Accounted for:

Cost transferred in 84,000Cost added 63,200

TOTAL P 147,200

(2)Unit Cost:PD: 84,000/12,000= P 7.00 M: 18,000/9,000= 2.00CC: 45,200/11,300= 4.00TOTAL P 13.00

Problem 5

(4)Total Cost Accounted for as follows:C&T: 9,000 * 13 P 117,000CNLU: (450 * 7) + (405 * 4) 4,770Total Cost of Completed Units P 121,770FOC: (550 * 7) + (495 * 4) 5,830I.P.,end: CFPD: (2,000 * 7) 14,000 CC (1,400*4) 5,600 19,600TOTAL P 147,200

Multiple Choice

Item 1 C Materials Conversion Work Done EUP Work Done EUP Compl/Transferred 4,800 100% 4,800 100% 4,800 IP, Ending 700 100% 700 60% 420 Total 5,500 5,500 5,220

Item 2 A Material Unit Cost: (P2,400 + P25,100)/ 5,500 = P5

Multiple ChoiceItem 3 C

Conversion Work Done EUP Compl/transferred 6,800 100% 6,800 IP, Ending 400 50% 200 Total 7,200 7,000

Item 4 A Conversion Unit Cost (P550 + P13,450) / 7,000 = P2.00

Multiple Choice

Item 5 D Materials Work Done EUP Compl/transferred 110,000 100% 110,000 IP, Ending 70,000 100% 70,000 Lost units (Normal) 30,000 100% 30,000 Total 210,000 210,000

Multiple Choice

Item 6 D Materials Conversion Work Done EUP Work Done EUP C & T 255,000 100% 255,000 100% 255,000 IP, Ending 25,000 100% 25,000 60% 15,000 Total 280,000 280,000 270,000

Multiple Choice

Item 7 C Materials Conversion Work Done EUP Work Done EUP Compl/transferred 12,000 100% 12,000 100% 12,000 IP, Ending 8,000 100% 8,000 75% 6,000 Total 20,000 20,000 18,000

Unit Costs : PD (P12,000 + P29,000) / 20,000 = P 2.05 M (P 2,500 + P 5,500 ) / 20,000 = 0.40 CC (P 1,000 + P 5,000 ) / 18,000 = 0.33 Cumulative Unit Cost P 2.78

Multiple Choice

Item 8 C Materials Conversion WD EUP WD EUP Compl/transferred 105,000 100% 105,000 100% 105,000 IP, Ending 20,000 - - 80% 16,000 Total 125,000 105,000 121,000

Multiple Choice Item 9 B Conversion Work Done EUP Compl/transferred 37,000 100% 37,000 IP, Ending 3,000 40% 1,200 Total 40,000 38,200 Conversion Unit Cost (P3,400 + P15,000) / 38,200 = P0.48

Item 10 B Preceding Dept Unit Cost (P2,900 + P17,500) / 40,000 = P0.51 Transferred-in cost of IP, end (3,000 EUP x P0.51) P1,530

CLASSROOM DRILL

Item1 D Materials Work Done EUP Compl/transferred 44,000 100% 44,000 IP, Ending 12,000 100% 12,000 Total 56,000 56,000

Material Unit Cost (P3,000 + P25,560) / 56,000 = P0.51 x 12,000 = P6,120

CLASSROOM DRILL

Item 2 C Materials Conversion Work Done EUP Work Done EUP Compl/transferred 15,000 100% 15,000 100% 15,000 IP, Ending 5,000 100% 5,000 65% 3,000 Total 20,000 20,000 18,000

CLASSROOM DRILL

Item 3 D Unit Conversion Cost: (P2,000 + P3,000) / 18,000 = P5,000/18,000

CLASSROOM DRILL

Item 4 D WIP, beg + Total Manufacturing Cost – WIP, end = Cost of Goods Mftd. Therefore: P8,000 + (P29,000 + P36,000) – P4,000 = P69,000

CLASSROOM DRILL

Item 5 A Materials & Conversion Work Done EUP Compl/transferred 800 100% 800 Lost units, Normal 100 - - Lost units, Abnormal 100 100% 100 Total 1,000 900 Unit Cost (P5,000 + P3,000 – P180) / 900 EUPs = P8.80 Cost of goods manufactured = 800 units completed x P8.80 = P7,040

CLASSROOM DRILL

Item 6 A

CLASSROOM DRILL

Item 7 C Materials Conversion Work Done EUP Work Done EUP Compl/transferred 21,000 100% 21,000 100% 21,000 IP, Ending 3,000 100% 3,000 60% 1,800 Total 24,000 Average M 24,000 22,800 Less 4,000 2,000 FIFO M 20,000 20,800

CLASSROOM DRILL Item 8 B

Average Unit Costs: Materials (P1,992 + P12,000) / 24,000 = P0.583 Conversion (P1,920 + P19,968) / 22,800 = .960

Cost of IP, Ending : Materials (3,000 x P0.583) P1,749 Conversion (1,800 x P0.960) 1,728 Total Cost P3,477

FIFO Unit Costs : Materials (P12,000 / 20,000) P0.600 Conversion (P19,968 / 20,800) 0.960 Cost of IP, Ending Materials (3,000 x P0.60) P1,800 Conversion (1,800 x P0.96) 1,728 Total Cost P3,528

CLASSROOM DRILL

Item 9 B

Item 10 B Materials Conversion Work Done EUP Work Done EUP C&T: From IP, beg 6,000 - - 2/3 4,000 From SIP 10,000 100% 10,000 100% 10,000 IP, Ending 2,000 100% 2,000 ½ 1,000 Total 18,000 12,000 15,000

Unit Costs: Materials (P6,000 / 12,000) P0.50 Conversion (P9,000 / 15,000) 0.60 Total P1.10

C & T: from IP, beginning – Cost last month P 4,800 Cost added this month: CC (4,000 x P0.60) 2,400 P 7,200 From Started in Process (10,000 x P1.10) 11,000 Total cost of completed units P18,200

IP, Ending Materials (2,000 x P0.50) P 1,000 Conversion (1,000 x P0.60) 600 P 1,600