Cost Acctg Chapter 10 PDF

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Summary

CHAPTER 10Answers to Multiple Choice – Theoretical1. b 5. b 9. c 2. c 6. C 10. A 3. b 7. C 11. D 4. b 8. CSolutions to Multiple Choice – Computational1. (d) Units started in process 95, Units in process, end - Dept. 1 ( 21,000) Units in process, end - Dept. 2 ( 12,000) Units transferred out to finis...

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1

CHAPTER 10

Answers to Multiple Choice – Theoretical 1. 2. 3. 4.

b c b b

5. 6. 7. 8.

b C C C

9. 10. 11.

c A D

Solutions to Multiple Choice – Computational 1.

2.

3.

4.

5.

6.

7.

8.

(d) Units started in process Units in process, end - Dept. 1 Units in process, end - Dept. 2 Units transferred out to finished goods

95,000 ( 21,000) ( 12,000) 62,000

(a) Units in process, beginning Units placed in process Units in process, end Units transferred out to Dept. 2

6,000 14,000 (4,200) 15,800

(a) Units completed and transferred out (100%) Units in process, end (3,000 x 80%) Equivalent units of production – Materials (a) P188,400 / 31,400 =

P6.00

(a) Units transferred to finished goods (100%) Ending work in process (400 x 25%) Equivalent units of production (a) P14,080 / 4,400 =

P3.20

(a) 100 x P3.20

P320

=

29,000 2,400 31,400

(a) Units placed in production Units transferred out to next department Units in ending work in process

4,300 100 4,400

73,000 (67,000) 6,000

2

9.

(a) Units transferred out to next department (100%) Units in ending work in process (6,000 x 1/3) Equivalent units of production – overhead

10.

(b) P282,900 / 69,000 = P4.10 x 67,000 = P274,700.

11.

(a) 2,000 EUP x P4.10

12.

13.

14.

15.

=

P8,200

(a) Units completed and transferred out (100%) Units completed and on hand (100%) Units in ending work in process (200 x 65%) Equivalent units of production

3,620 80 130 3,830

Unit cost = (P27,193 / 3,830)

P7.10

Labor ost of units transferred out: (3,620 x P7.10)

P25,702

(a) 80 x P7.10

=

P568

(a) Units started into production Units completed Units in process, end (a) 130 x P7.10

=

3,900 3,700 200

P923

16.

(a) Materials are added in Department 1.

17.

(c) Units transferred out to finished goods (100%) Units in process, end (18,600 x 72%) Equivalent units of production – conversion cost

18.

67,000 2,000 69,000

61,400 13,392 74,792

(b) Equivalent units of production: Units finished and transferred to finished goods Units in process, end (9,000 x 35%) EUP

28,000 3,150 31,150

Unit cost: Transferred in cost: (P24,050 / 37,000) This department: (P18,690 / 31,150)

P0.65 0.60

3

19.

Units in process, end: Transferred in cost: (9,000 x P0.65) Cost this department: (3,150 x P0.60) Cost of units in process, end

P5,850 1,890 P7,740

(b) Equivalent units of production: Materials: Units finished and transferred out Ending work in process EUP

48,000 12,000 60,000

Conversion cost: Units finished and transferred out Ending work in process (12,000 x 70%) EUP

48,000 8,400 56,400

Unit costs: Transferred in cost: (P24,750 / 55,000) This department: Materials; (P7,200 / 60,000) CC: (P53,580 / 56,400) Total unit cost 20.

21.

P0.45 P0.12 0.95

0.95 P1,52

(b) Equivalent units of production: Materials: Units transferred out (15,000 – 3,000) Units in process, end EUP

12,000 -012,000

Conversion cost: Units transferred out Units in process, end (3,000 x 2/3) EUP

12,000 2,000 14,000

Cost of units transferred out: Transferred in; (P13,500 / 15,000) Materials: (12,000 x 4 x P.02) = P960 / 12,000 Conversion cost: (P14,210 / 14,000) Total unit cost Cost of units transferred out: (12,000 x P1.995)

P0.90 0.08 1.015 P1,995 P23,940

(d) Equivalent units of production: Materials: Units transferred out to finished goods Ending units in process: 10% x 70,000 = 7,000

530,000 -0–

4

40% x 70,000 = 28,000 15% x 70,000 = 10,500 35% x 70,000 = 24,500

-0– 10,500 24,500

EUP Conversion cost: Units transferred out to finished goods Ending units process: 7,000 x 30% 28,000 x 60% 10,500 x 75% 24,500 x 85% EUP

22.

23.

35,000 565,000

530,000 2,100 16,800 7,875 20,825

47,600 577,600

Unit cost: Transferred in: (P300,000 / 500,000) Materials: (P559,350 / 565,000) Conversion cost: (P606,480 / 577,600) Total unit cost

P . 60 .99 1.05 P2.64

Cost of ending work in process: Transferred in: (70,000 x P0.60) Materials: (35,000 x P0.99) Conversion cost: (47,600 x P1.05) Total

P 42,000 34,650 49,980 P126,630

(a) Transferred in cost: (32,000 x P8.39( Cost added: Direct labor: (20,000 x P3.19) Overhead: (20,000 x P1.20) Cost to account for

P268,480 P63,800 24,000

(b) Unit cost from preceding department: (P391,500 / 78,300) Unit cost this department: Direct materials P 1.23 Conversion costs 2.50 Total unit costs Total units to account for Units transferred in: (P508,959 / P8.73) Units in process, end Total cost to account for: Units transferred to finished goods Units in process, end: Transferred in cost (20,000 x P5.00) Cost added this department:

87,800 P356,280

P

5.00

P

3.73 8.73 78,300 58,300 20,000

P508,959 P100,000

5

DM: (20,000 x P1.23) CC: (20,000 x 45%) x P2.50 Total cost to account for 24.

25.

(a) P1,480,000 / 10,000 units =

24,600 22,500

P148

(a) Equivalent units of production: Materials: Units completed Units in process, end EUP

9,000 1,000 10,000

Conversion cost: Units completed Units in process, end (1,000 x50%) EUP

9,000 500 9,500

Unit costs: Materials: (P720,000 / 10,000) Conversion cost: (760,000 / 9,500) 26.

(a) Equivalent units of production: Materials: Completed and transferred out Ending work in process: Chemical P: (15,000 x 100%) Chemical Q: EUP Conversion cost: Completed and transferred out Ending work and process; (15,000 x 2/3) EUP Unit costs: Materials: Chemical P: (P250,000 / 50,000) Chemical Q: (P70,000 / 35,000) Conversion cost: (P135,000 / 45,000) Total unit cost

27.

147,100 P656,059

P72 80

Chemical P

Chemical Q

35,000

35,000

15,000 50,000

- 0 35,000

35,000 10,000 45,000

P 5.00 2.00 3.00 P10,00

Completed and transferred out: (35,000 x P10)

P350,000

(a) Ending work in process:: Materials: Chemical P (15,000 x P5) Conversion cost: (10,000 x P3)

P 75,000 30,000

6

Cost of ending work in process

P105,000

Problem 10-1 D Units started in process Units transferred in

E 1 10,000 -

Units to account for Transferred to next department Transferred to finished goods Ending work in process Units accounted for

P

A 2

R

T

M 3

(b) 4,000

3,000

10,000

4,000

3,000

(a) 4,000

3,000

6,000 10,000

(c) 1,000 4,000

E

N 4

T

S 5

(c) 2,400 2,400

(g) 2,100

(d) 2,400 (f) 2,100

-

600 3,000

300 2,400

2,100

(h) 1,600 500 2,100

PROBLEM 10-2 Dept. A

Dept. B

Dept. C

Materials: Transferred out (100%) Ending work in process EUP

15,000 10,000 25,000

12,000

9,000

12,000

9,000

Conversion cost: Transferred out Ending work in process EUP

15,000 7,500 22,500

12,000 1,500 13,500

9,000 900 9,900

Problem 10-3 Materials: Units transferred out: (50,000 – 10,000) Units in process, end: 10,000 x 25% = 2,500 x 20% 10,000 x 30% = 3,000 x 50% 10,000 x 25% = 2,500 x 80% 10,000 x 20% = 2,000 x 100% EUP Conversion cost:

40,000 500 1,500 2,000 2,000

6,000 46,000

7

Units transferred out Units in process, end: 2,500 x 35% 3,000 x 55% 2,500 x 80% 2,000 x 95% EUP

40,000 875 1,650 2,000 1,900

6,425 46,425

Problem 10-4

1.

2.

Equivalent units of production Materials: Units transferred out: (13,000 – 2,000) Units in process, end EUP

11,000 -0– 11,000

Conversion cost: Units transferred out Units in process, end (2,000 x 45%) EUP

11,000 900 11,900

Department 2 Cost of Production Report Month of July 31, 2010 Quantity Schedule: Transferred in

Units 13,000

Transferred out Work in process, end Total accounted for

11,000 2,000 13,000

Cost Schedule Cost transferred in Cost added in this dept. Materials CC Total cost to account for

Total Cost EUP P16,120 ÷ 13,000

Cost accounted for: Transferred out Work in process, end: Cost transferred in Cost added: CC Total cost accounted for

=

Unit Cost P1.24

2,860 9,996 P28,976

÷ ÷

11,000 11,900

= =

0.26 0.84 P2.34

P25,740

=

11,000

x

P2.34

2,480

=

2,000

x

1.24

756 P28,976

=

900

x

0.84

8

1.

Equivalent Units of Production Materials: Units transferred out (100 %) Ending units in process EUP

Problem 10-5 Dept. 1

Dept. 2

60,000 15,000 75,000

55,000 -055,000

60,000 9,000 69,000

55,000 4,000 59,000

Conversion cost: Units transferred out Ending units in process EUP 2.

Department 1 Cost of Production Report Month of January, 2010 Quantity Schedule Units started in process

Units 75,000

Units transferred out Units in process, end Total accounted for

60,000 15,000 75,000

Cost Schedule Direct materials Conversion costs Total cost to account for

Total Cost P300,000 258,750 P558,750

EUP ÷ 75,000 = ÷ 69,000 =

Transferred out Units in process, end: Materials CC Total accounted for

P465,000

= 60,000

x

P7.75

60,000 33,750 P558,750

= 15,000 = 9,000

x x

4.00 3.75

Unit Cost P4.00 3.75 P7.75

Department 2 Cost of Production Report Month of January, 2010 Quantity Schedule Units transferred in

Units 60,000

Units transferred out Units in process, end Total accounted for

55,000 5,000 60,000

Cost Schedule Transferred in cost Cost added this department: CC

Total Cost P465,000 243,375

÷ ÷

EUP Unit Cost 60,000 = P 7.75 59,000 = 4.125

9

(1)

Total cost to account for

P708,375

Transferred out Units in process, end: Transferred in Cost added: CC Total accounted for

P653,125

Equivalent Units of Production Materials: Units transferred out Units in process, end EUP Conversion Costs Units transferred out Units in process, end EUP

(2)

P11.875 =

55,000 x

P11.875

38,750 = 16,500 = P708,375 Problem 10-6

5,000 x 4,000 x

7.75 4.125

Dept. 1

Dept. 2

Dept. 3

125,000 25,000 150,000

115,000 - 0 115,000

112,000 - 0 112,000

125,000 10,000 135,000

115,000 1,000 116,000

112,000 2,700 114,700

Cost of Production Reports: Department 1: Quantity Schedule Started in process

Units 150,000

Transferred out Ending work in process Total accounted for

125,000 25,000 150,000

Cost Schedule Materials Conversion costs Total cost to account for

Total Cost P21,000 24,300 P45,300

÷ ÷

EUP 150,000 135,000

= =

Unit Cost P0.14 0.18 P0.32

Transferred out Ending work in process: Materials Conversion cost Total accounted for

P40,000

=

125,000

x

P0.32

3,500 1,800 P45,300

= =

25,000 x 10,000 x

0.14 0.18

Department 2 Quantity Schedule Transferred in

Units 125,000

Transferred out Ending work in process Total accounted for

115,000 10,000 125,000

10

Cost Schedule Transferred in cost Cost added this department: Conversion cost Total cost to account for

Total Cost P40,000

÷

EUP Unit Cost 125,000 = P0.32

34,800 P74,800

÷

116,000 =

0.30 P0.62

Transferred out Ending work in process: Transferred in cost Cost added this dept. – CC Total accounted for

P71,300

=

115,000 =

P0.62

3,200 300 P74,800

= =

10,000 = 1,000 =

0.32 0.30

Problem 10-6 (continued): Department 3 Quantity Schedule Transferred in

Units 115,000

Transferred out Ending work in process Total accounted for

112,000 3,000 115,000

Cost Schedule Transferred in cost Cost added this department: CC Total cost to account for

Total cost P71,300 ÷ 24,087 ÷ P95,387

EUP 115,000 = 114,700 =

Unit Cost P0.62 0.21 P0.83

Transferred out to finished goods Ending work in process: Transferred in cost Cost added this dept.: CC Total accounted for

P92,960

=

112,000 x

P0.83

1,860 567 P95,387

= =

3,000 x 2,700 x

0.62 0.21

Problem 10-7 1.

Equivalent Units of Production Materials: Transferred out Completed and on hand Ending work in process EUP Conversion cost: Transferred out Completed and on hand Ending work in process EUP

Dept. 1

Dept. 2

15,000 8,000 23,000

7,000 1,000 - 08,000

15,000 6,500 21,500

7,000 1,000 5,250 13,250

11

2.

Cost of Production Report Department 1 Quantity Schedule Started in process

Units 25,000

Transferred out Ending work in process Total accounted for

15,000 10,000 25,000

Cost Schedule Direct materials Conversion cost Total cost to account for

Total Cost EUP P12,650 ÷ 23,000 18,705 ÷ 21,500 P31,355

Transferred out Ending work in process: DM CC Total accounted for Problem 10-7 (Continued)

P21,300 4,400 5,655 P31,355

= 15,000 = 8,000 = 6,500

= =

Unit Cost P0.55 0.87 P1.42

x x x

P1.42 0.55 0.87

Department 2 Quantity Schedule Transferred in

Units 15,000

Transferred out to finished goods Completed and on hand Ending work in process Total accounted for

7,000 1,000 7,000 15,000

Cost Schedule Transferred in cost Cost added this department: CC Total cost to account for

Total Cost P21,300 16,430 P37,730

÷ ÷

EUP 15,000 13,250

= =

Unit Cost P 1.42 1.24 P 2.66

Transferred out to finished goods Completed and on hand Ending work in process: Transferred in cost Cost added this dept.: CC Total accounted for

P18,620 2,660

= =

7,000 1,000

x x

P 2.66 2.66

9,940 6,510 P37,730

= =

7,000 5,250

x x

1.42 1.24

Problem 10-8 1.

Equivalent Units of Production: Materials: Transferred out

101 250,000

102 250,000

103 250,000

104 250,000

12

Ending units in process: 50,000 x 30% = 15,000 50,000 x 35% = 17,500 50,000 x 15% = 7,500 50,000 x 20% = 10,000 EUP

15,000 17,500 7,500 10,000 300,000

Conversion Cost: Transferred out Ending units in process: 15,000 x 45% 17,500 x 50% 7,500 x 65% 10,000 x 98% EUP 2.

15,000 17,500 7,500 10,000 300,000

250,000 6,750 8,750 4,875 9,800 280,175

Unit costs: Materials: 101: (P6,000 / 300,000) P0.02 102: (P3,000 / 300,000) 0.01 103: (P9,362.50 / 267,500) 0.035 104: (P13,000 / 260,000) 0.05 Conversion cost: (P117,763.50 / 280,175) Total unit costs

P0.115 0.42 P0.535

Problem 10-8 (Continued): Cost of ending work in process inventory: Materials: 101: (50,000 x P0.02) 102: (50,000 x P0.01) 103: (17,500 x P0.035) 104: (10,000 x P0.05) Total Conversion cost: (30,175 x P0.42) Total cost

P 1,000.00 500.00 612.50 500.00 P 2,612.50 12,673.50 P15,286.00

Problem 10-9

1.

Equivalent Units of Production: Assembly Department: Materials: Transferred out to next department Ending work in process (100%) EUP

1,860 140 2,000

7,500 10,000 17,500

10,000 10,000

13

2.

Conversion cost: Transferred out Ending work in process: (140 x 75%) EUP

1,860 105 1,965

Finishing Department: Materials and overhead: Transferred out to finished goods Ending work in process (60 x 40%) EUP

1,800 24 1,824

Labor: Transferred out to finished goods Ending work in process (60 x 10%) EUP

1,800 6 1,806

Peninsula Company – Assembly Department Cost of Production Report Month of August Quantity Schedule Started in process

Units 2,000

Transferred out to next department Work in process, end Total accounted for

1,860 140 2,000

Cost Schedule Materials Labor Overhead Total cost to account for

Total Cost P30,000.00 ÷ 29,670.00 ÷ 18,830.00 ÷ P78,500.00

EUP 2,000 1,965 1,965

= = =

Unit Cost P15.00 15.10 9.58 P39.68

Transferred out to next department Work in process, end: Materials Labor Overhead Total work in process Total cost accounted for *P3 adjustment for rounding.

P73,808.00* =

1.860

x

P39.68

2,100.00 = 1,586.00 = 1,006.00 = 4,692.00 P78,500.00

140 105 105

x x x

15.00 15.10 9.58

Peninsula Company – Finishing Department Cost of Production Report Month of August Quantity Schedule Transferred in from prior department

Units 1,860

14

3.

4.

5.

Transferred out to finished goods Work in process, end Total accounted for

1,800 60 1,860

Cost Schedule Transferred in cost from prior dept. Cost added this department: Materials La...