Cost Acctg Chapter 12 - solman guerrero PDF

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CHAPTER 12Answers to Multiple Choice - Theoretical1. a 2. c 3. a4. b 5. b 6. a7. aSolutions to Multiple Choice – Computational1. (b)Units completed: From BWIP: (50% x 100) 50 From started in process (100%) 300 350 Work in process, end: (75% x 200) 150 EUP 5002. (d)Unit material cost: Material cost t...

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1

CHAPTER 12 Answers to Multiple Choice - Theoretical 1. 2. 3.

a c a

4. 5. 6.

b b a

7.

a

Solutions to Multiple Choice – Computational 1.

(b) Units completed: From BWIP: (50% x 100) From started in process (100%) Work in process, end: (75% x 200) EUP

2.

3.

50 300

(d) Unit material cost: Material cost this month Divided by EUP Unit cost

P720,000 ÷ 500 P 1,400

Ending work in process: (P1,440 x 150)

P216,000

(a) Equivalent unit of production – Labor Transferred out: From BWIP: (60% x 1,000) From transferred in Ending work in process: (70% x 4,000) EUP

600 26,000

Unit labor cost: Labor cost this month Divided by EUP Unit labor cost Transferred out: From BWIP: Labor cost last month Labor cost this month (600 x P8.10) From transferred in; (26,000 x P8.10) Overhead cost of units transferred out

4.

350 150 500

(a)

26,600 2,800 29,400

P238,140 ÷ 29,400 P 8.10

P 3,600 4,860

P 8,460 210,600 P219,060

2

Equivalent units of production – Overhead: Transferred out: From BWIP (3,300 x 2/3) From transferred in Ending work in process (2,000 x ¾) EUP

5.

P38,025 ÷16,900 P 2.25

Transferred out: From BWIP: Overhead cost last month P 2,332 Overhead cost this month (2,200 x P2.25) 4,950 From transferred in (13,200 x P2.25) Overhead cost of units transferred out

P 7,282 29,700 P36,982

(b)

88,800 9,600 98,400

P468,000 ÷ 104,000 P 4.50

P574,040 ÷ 98,400 P 5.83

(a) Materials (21,600 x P4.50) Conversion cost (9,600 x P5.83) Cost of EWIP

10.

12,800 76,000

(b) Conversion cost incurred this month Divided by EUP Unit conversion cost

9.

82,400 21,600 104,000

(b) Material cost incurred this month Divided by EUP Unit material cost

8.

6,400 76,000

(d) Transferred out: From BWIP (80% x 16,000) From SIP Ending work in process (40% x 24,000) EUP – conversion cost

7.

15,400 1,500 16,900

Unit overhead cost: Overhead cost incurred this month Divided by EUP Unit overhead cost

Transferred out: From BWIP (40% x 16,000) From SIP 92,000 – 16,000) Ending work in process (90% x 24,000) EUP – materials 6.

2,200 13,200

(a)

P 97,200 55,968 P153,168

3

Equivalent units of production: Materials: Transferred out: From BWIP (5,000 x 0%) From SIP (91,400 – 5,000) Ending work in process (4,000 x 100%) EUP Conversion cost: Transferred out: From BWIP (5,000 x 60%) From SIP Ending work in process (4,000 x 70%) EUP

-086,400

3,000 86,400

Unit costs: Materials: (P433,920 / 90,400) Conversion cost: (P115,250 / 92,200) Total unit costs Transferred out: From BWIP: Cost last month Cost this month: Conversion cost (3,000 x P1,25) From SIP (86,400 x P6.05) Total cost transferred out 11.

P 4.80 1,25 P 6.05

P24,875 3,750

P 28,625 522,720 P551,345

P19,200 3,500 P22,700

(a) Gallons transferred out Gallons in ending inventory Total units accounted for Gallons in beginning inventory Gallons started in April

13.

89,400 2,800 92,200

(a) Material costs: (4,000 x P4.80) Conversion costs: (2,800 x P1.25) Cost of ending work in process

12.

86,400 4,000 90,400

(a)

242,000 23,500 265,500 (36,000) 229,500

4

Equivalent Units of Production: Material: Transferred out: From BWIP: (0%) From SIP: (242,000 – 36,000) Ending work in process: (23,500 x 100%) EUP

- 0 206,000

Labor: Transferred out: From BWIP: (36,000 x 65%) From SIP: (100%) Ending work in process: (23,500 x 25%) EUP

23,400 206,000

Overhead: Transferred out: From BWIP: (36,000 x 40%) From SIP Ending work in process: (23,500 x 30%) EUP

14,400 206,000

Unit costs: Material costs: (P1,131,435 / 229,500) Labor costs: (P451,728 / 235,275) Overhead costs: (P773,330 / 227,450) Total unit costs Completed BWIP Cost last month Cost this month: Materials: Labor: (23,400 x P1.92) Overhead: (14,400 x P3.40) Total costs of completed BWIP 14.

229,400 5,875 235,275

220,400 7,050 227.450

P 4.93 1.92 3.40 P10.25

P276,400 -044,928 48,960

93,888 P370,288

(a) Units completed: From BWIP (#13) From SIP: (206,000 x P10.25) Total costs of units completed

15.

206,000 23,500 229.500

P 370,288 2,111,500 P2,481,788

(a) Total costs of units completed (#14) Divided by total units completed Average unit cost

P2,481,788 ÷ 242,000 P 10.26

5 16.

(a) Materials: (23,500 x P4.93) Labor: (5,875 x P1.92) Overhead: (7,050 x P3.40) Total cost of EWIP

17.

P115,855 11,280 23,970 P151,105

(b) Equivalent Units of Production – Materials Units completed: From BWIP: (20 x 0%) From SIP: (90 – 20) 100% Ending work in process: (10 x 100%) EUP

0 70

Unit material cost: Material cost incurred this month Divided by EUP Unit material cost 18.

Unit conversion cost: Conversion costs incurred this month Divided by EUP Unit conversion cost

8 70

78 7 85

P3,740,000 ÷ 85 P 44,000

(a) Cost incurred last month Cost incurred this month: Conversion costs: (8 x P44,000) Total costs of completed BWIP

20.

P8,000,000 ÷ 80 P 100,000

(a) Equivalent Units of Production – Conversion Cost: Units completed: From BWIP: (20 x 40%) From SIP Ending work in process: (10 x 70%) EUP

19.

70 10 80

P2,280,000 352,000 P2,632,000

(a) Transferred out: From BWIP #(19) From SIP; (70 x P144,000) Total cost of units completed Divided by total units completed Average unit cost

P 2,632,000 10,080,000 P12,712,000 ÷ 90 P 144,244

6 21.

(a) , See #20 above.

22.

(a) Materials: (10 x P100,000) Conversion cost: (7 x P44,000) Cost of EWIP inventory

23.

P1,000,000 308,000 P1,208,000

(a) Equivalent Units of Production - Materials Units completed: From BWIP: (10,000 x 0%) From SIP: (34,000 – 10,000) 100% Ending work in process: (16,000 x 100%) EUP – Materials

0 24,000

Unit material cost: (P280,000 / 40,000) 24.

P 7.00

(a) Equivalent Units of Production – Conversion Costs: Units completed: From BWIP: (10,000 x 30%) From SIP Ending work in process: (16,000 x 50%) EUP – Conversion costs

3,000 24,000

Unit conversion costs: (P371,000 / 35,000) 25.

P10.60

P60,000 P -031,800

31,800 P91,800

(b) Units Transferred out: From BWIP (#25) From SIP: (24,000 x P17.60) Total costs of units transferred out Divided by units transferred out Average unit cost of units transferred out

27.

27,000 8,000 35,000

(d) Cost last month Cost added this month: Material cost Conversion costs: (3,000 x P10.60) Total cost of competed BWIP

26.

24,000 16,000 40,000

P 91,800 422,400 P514,200 ÷ 34,000 P 15.12

(a) Material cost: (16,000 x P7) Conversion costs: (8,000 x P10.60) Total costs of EWIP inventory

P112,000 84,800 P196,800

7 28.

(a) Transferred in costs this month Divided by units transferred in this month Unit transferred in cost

29.

P85,600 ÷ 80 P 1,070

(a) Equivalent Units of Production: Materials: Competed and transferred out: From BWIP: (40 x 100%) From transferred in: (90 – 40) 100% Ending work in process: (30 x 0%) EUP Conversion costs:: Completed and transferred out: From BWIP: (40 x 25%) From transferred in Ending work in process: (30 x 50%) EUP

40 50

10 50

Unit costs: Materials: (P36,000 / 90) Conversion costs: (49,725 / 75) 30.

60 15 75

P400 P663

(a) Units completed and transferred out: From BWIP: Cost last month Cost added this month: Materials: (40 x P400) CC: (10 x P663) From transferred in: (P1.070 + P400 + P663) x 50 Total costs of units completed and transferred out

P57.200 16,000 6,630

Ending work in process: Transferred in costs: (30 x P1,070) Costs added this department: Conversion cost: (15 x P663) Total costs of EWIP 31.

90 0 90

P 79,830 106,650 P186,480

P 32,100 9,945 P 42,045

(d) Equivalent Units of Production – Materials: Units completed: From BWIP (150 x 100%) From Transferred In: (525 – 150) Ending work in process (75 x 0%) EUP – Materials

150 375

525 0 525

8 No. 31 (continued) Equivalent Units of production – Conversion Costs: Units completed: From BWIP: (150 x 30%) From Transferred In Ending work in process (75 x 60%) EUP – CC 32.

45 375

(a) Material cost incurred this month Divided by EUP Unit material cost

33.

P971,250 ÷ 525 P 1,850

(a) Conversion costs incurred this month Divided by EUP Unit conversion costs

34.

P395,250 ÷ 465 P 850

(a) Cost last month Cost this month: Materials: (150 x 1,850) Conversion costs: (45 x P850) Total costs of completed BWIP

35.

420 45 465

P327,965 P277.500 38,250

315,750 P643,715

(a) Transferred out to finished goods: From BWIP ( #34) From Transferred In: (P1,770* + P1,850 + P850) x 375 Total cost of units transferred out to finished goods

P 643,715 1,676,250 P2,319,965

* Unit transferred in cost: (P796,500 / 450) = P1,770

36.

(a) Transferred in costs from prior department: (75 x P1,770) Cost added in this department: Conversion costs: (45 x P850) Total costs of ending work in process

P 132,750 38,250 P 171,000

37.

Equivalent Units of Production Cost added in current month Divided by cost per EUP EUP

Transferred In Costs P234,000 ÷ P 26 9,000

Direct Materials P228,000 ÷ P12 19,000

Conversion Costs P228,800 ÷ 20.80 11,000

9 Number 37 (continued): Transferred In costs: Total EUP Started and completed (19,000 - 15,000) EUP – Transferred in Direct materials: Total EUP Transferred out From BWIP (15,000 x 100%) From started and completed EUP – EWIP Conversion Costs: Total EUP Transferred out: From BWIP (15,000 x 40%) From started and completed EUP – EWIP

Percentage of Completion: Transferred in costs: (5,000 / 5,000) Direct materials: ( 0 / 5,000) Conversion costs: (1,000 / 5,000) 38.

9,000 (4,000) 5,000

19,000 15,000 4,000

(19,000 ) -0-

11,000 6,000 4,000

(10,000) 1,000

100% 0% 20%

(a) Transferred out: From BWIP: Cost last month Cost added this month: Materials (15,000 x P12) CC: (6,000 x P20.80) Total costs of BWIP From started and completed (4,000 x P58.80) Total costs of units transferred out Ending Work In Process: Transferred in costs from prior department (5,000 x P26) Cost added this department: Conversion costs: (1,000 x P20.80) Total costs of EWIP

P 540,000 180,000 124,800 844,000 235,200 P1,080,000

P 130,000 20,800 P 150,800

10 Solutions to Problems Problem 12-1 1.

Equivalent Units of Production: Materials: Completed and transferred out: From BWIP: (300 x 0%) From SIP: (2,000 – 300) 100% Ending work in process: (500 x 100%) EUP Conversion Costs: Completed and transferred out: From BWIP: (300 x 60%) From SIP Ending work in process: (500 x 25%) EUP

-01,700

180 1,700

Unit Costs: Materials: (P699,600 / 2,200) Conversion costs: (P425,060 / 2005) Total unit costs Total costs – Forming Department: BWIP Cost added during April: Materials Conversion costs Total costs Assignment of Costs: Units completed and transferred out: From BWIP: Cost last month Cost added this month: CC: (180 x P212) From SIP: (1,700 x P5.30) Total costs completed and transferred out

1,880 125 2,005

P318 212 P530

P P699,600 425,060

96,250

1,124,660 P1,035,410

P96,250 38,160

Ending work in process: Materials: (500 x P318) Conversion costs: (125 x P212) Total costs of EWIP 2.

1,700 500 2,200

Work in process – Forming Department 1,124,660 Account payable (materials) Various accounts (conversion costs) To record direct materials and conversion costs incurred And used in production during April. Work in process – Finishing Department 1,035,410 Work in process – Forming Department To record costs of units transferred to Finishing Department.

P 124,410 901,000 P1,035,410

P 159,000 26,500 P 185,500

699,600 425,060

1,035,410

11

Problem 12 -2 2.

Equivalent Units of Production: Materials: Completed and transferred out: From BWIP: (500 x 100%) From SIP: (2,100 – 500) 100% Ending work in process: (400 x 0%) EUP Conversion costs: Completed and transferred out: From BWIP: (500 x 40%) From SIP Ending work in process: (400 x 30%) EUP

500 1,600

200 1,600

Unit Costs: Transferred in costs: (P1,035,410 / 2,000) Materials costs: (P231,000 / 2,100) Conversion costs: (P384,000 / 1,920) Total unit costs Total Costs – Finishing Department: Work in process, April 1 Transferred In costs this month Cost added this month: Materials Conversion costs Total costs Assignment of costs: Units completed and transferred out: From BWIP: Cost last month Cost added this month: Materials: (500 x P110) CC: (200 x 200) From SIP: (1,600 x P827.705) Total costs of units completed and transferred out

1,800 120 1,920

P517.705 110.00 200.00 P827.705

P 247,700 1,035,410 P231,000 384,000

615,000 P1,898,110

P247,700 55,000 40,000

Ending Work in Process: Transferred In costs: (400 x P517.705) Cost added: Conversion costs: (120 x P200) Total costs of EWIP 2.

2,100 -0– 2,100

P 342,700 1,324,328 P1,667,028

P 207,082 24,000 P 231,082

Work in process – Finishing Department 1,035,410 Work in process – Forming Department To record transferred in costs from Forming Department.

1,035,410

Finished goods 1,667,028 Work in process – Finishing Department To record cost units transferred out to finished goods.

1,667,028

12 Problem 12-3 1.

2.

Equivalent Units of Production: Materials: Completed and transferred out: From BWIP: (4,000 x 0%) From SIP: (50,000 – 4,000) 100% Ending work in process: (6,000 x 100%) EUP

-046,000

Conversion Costs: Completed and transferred out: From BWIP: (4,000 x 40%) From SIP Ending work in process: (6,000 x 75%) EUP

1,600 46,000

46,000 6,000 52,000

47,600 4,500 52,100

Cooking Department Cost of Production Report Month of July 2010 Quantity Schedule Beginning work in process Started in process Units to account for

Units 4,000 52,000 56,000

Completed and transferred out: From BWIP 4,000 From SIP 46,000 Ending work in process Total accounted for

50,000 6,000 56,000

Cost Schedule BWIP Cost added this month: Materials Conversion costs Total costs to account for Completed and transferred Out: From BWIP: Cost last month Cost added this month: Conversion costs Total BWIP From SIP Total costs transferred out Ending work in process: Materials Conversion costs Total EWIP Total costs accounted for

Total Cost P 84,448 595,920 860,692 P1,541,060

P

÷ ÷

Unit Costs

52,000 = P11.46 52,100 = 16.52 P27.98

84,448

26,000 110,880 1,287,080 P1,297,960

P

EUP

68,760 74,340 143,100 P1,541,060

=

1,600 x

P16.52

=

4,600 x

27.98

= =

6,000 4,500

11.46 16.52

x x

13 Problem 12-4

1.

2.

Equivalent Units of Production: Materials: Transferred out: From BWIP: (8,000 x 20%) From SIP: (44,000 – 8,000) Ending work in process: (4,000 x 70%) EUP

1,600 36,000

Labor: Transferred out: From BWIP: (8,000 c 60%) From SIP Ending work in process: (4,000 x 50%) EUP

4,800 36,000

Overhead: Transferred out: From BWIP: (8,000 x 70%) From SIP Ending work in process: (4,000 x 40%) EUP

5,600 36,000

Curing Department Cost of Production Report Month of May 2010 Quantity Schedule Beginning work in process Transferred In from prior department Units to account for Transferred out: From BWIP From Transferred In Ending work in process Total accounted for

Units 8,000 40,000 48,000

8,000 36,000

44,000 4,000 48,000

37,600 2,800 40,400

40,800 2,000 42,800

41,600 1,600 43,200

14 Problem 12-4 (continued)

Cost Schedule Beginning work in process Transferred In cost - current month Cost added this department: Materials Labor Overhead Total costs to account for Costs accounted for as follows: Transferred out: From BWIP: Cost last month Cost added this month: Materials Labor Overhead Total BWIP From Transferred In Total costs transferred out Ending Work in process: Transferred in costs Cost added: Materials Labor Overhead Total EWIP Total costs accounted for

Total Costs P 202,520 640,000

EUP

Unit Costs

÷

40,000

= P16.00

÷ ÷ ÷

40,400 42,800 43,200

= = =

= = =

1,600 4,800 5,600

x x x

P 8.00 4.00 2.00

=

36,000

x

30.00

64,000

=

4,000

x

16.00

22,400 8,000 3,200 97,600 P1,423,320

= = =

2,800 2,000 1,600

x x x

8.00 4.00 2.00

323,200 171,200 86,400 P1,423,320

P 202,520 12,800 19,200 11,200 245,720 1,080,000 1,325,720

Problem 12-5 1.

Equivalent Units of Production: Materials: Transferred out to finished goods: From BWIP: (1,000 x 10%) From SIP: (2,800 – 1,000) 100% Ending work in process: (1,200 x 50%) EUP Conversion costs: Transferred out to finished goods: From BWIP: (1,000 x 20%) From SIP Ending work in process: (1,200 x 40%) EUP

2.

Assembly Department: Cost of Production Report Month of November 2010

8.00 4.00 2.00 P30.00

100 1,800

200 1,800

1,900 600 2,500

2,000 480 2,480

15

Quantity Schedule Beginning work in process Started in process Total to be accounted for

Units 1,000 3,000 4,000

Transferred out to finished goods: From BWIP From SIP Ending work in process Total accounted for

1,000 1,800

Cost Schedule Beginning work in process Costs from prior department Costs added this department: Materials Conversion costs Total to accounted for Transferred out to finished g...