Cost Acctg Chapter 13 - solman guerrero PDF

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CHAPTER 13Answers to Multiple Choices – Theoretical1. b 6. b 2. a 7. d 3. c 8. b 4. b 9. a 5. a 10. cSolutions to Multiple Choices – Computational1. (d)Transferred Out to next department 4,Normal lost units (100%) 15,Beginning work in process Transferred In Costs:EUP – Materials 105,2. (a)Transferre...

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1

CHAPTER 13 Answers to Multiple Choices – Theoretical 1. 2. 3. 4. 5.

b a c b a

6. 7. 8. 9. 10.

b d b a c

Solutions to Multiple Choices – Computational 1.

(d) Transferred Out to next department (100%) Normal lost units (100%) Ending work in process (100%) EUP – Materials

2.

(a) Transferred Out: From BWIP: (30,000 x 40%) From SIP: (55,000 – 30,000) 100% Normal lost units (100%) Ending work in process: (35,000 x 50%) EUP – Conversion cost

3.

37,000 15,000 17,500 69,500

2,000 7,000

9,000 1,500 2,400 12,900

(a) Transferred Out Normal lost units Ending work in process EUP – Conversion costs

5.

12,000 25,000

(b) Transferred Out: From BWIP: (5,000 x 40%) From TI: (12,000 – 5,000) Normal lost units (2,000 x 75%) Ending work in process: (6,000 x 40%) EUP – Conversion costs

4.

55,000 15,000 35,000 105,000

12,000 1,500 2,400 15,900

(c) Transferred In cost: (620 x P12.50) Cost added this department: Materials: (620 x P8) Conversion costs: (279 x P13.75) Cost of lost units

P 4,960.00 3,836.25 7,750.00 P16,546.25

2 6.

7.

(c) Cost of normal lost units: (P32,850 x 800/1,200)

P21,900

Allocated to Ending Work in Process: (P21,900 x 4,800/16,800)

P6,257.14

(c) EUP Transferred Out Ending work in process Normal spoiled units EUP

8.

Actual Units 7,000 2,000 1,000

P3.00 5.00 P8.00

Cost of units transferred out: (7,000 x P8)

P56,000

(c)

33,000 9,000 2,000 44,000

(a) Completed and transferred out Ending work in process: (8,000 x 100%) EUP – Materials

11.

85,000 45,000 10,000 140,000

(b) Transferred Out to finished goods (100%) Ending work in process: (15,000 x 60%) Abnormal lost units: (2,000 x 100%) EUP – Conversion costs

10.

Conversion 7,000 1,000 1,000 9,000

Unit costs: Materials: (P30,000 / 10,000) Conversion costs: (P45,000 / 9,000) Total unit costs

Transferred Out to next department (100%) Ending work in process (100%) Normal lost units (10,000 x 100%) EUP – Materials 9.

Materials 7,000 2,000 1,000 10,000

72,000 8,000 80,000

(b) Materials in BWIP Materials added during month Total Divided by EUP Unit material cost

P 68,000 100,000 P168,000 ÷ 80,000 P 2.10

3 12.

(a) Transferred Out to next department Ending work in process (200 x 40%) Lost units: (600 x 100%) EUP – Labor

13.

9,600 80 600 10,280

(a) Labor cost in BWIP Labor cost incurred during the month Total labor costs Divided by EUP Unit labor cost

14.

(a) Transferred Out to next department: From BWIP: (400 x 50%) From SIP: (9,600 – 400) Ending work in process: (200 x 40%) Lost units EUP – Labor

15.

3,000 15,000 18,000 (17,250) ( 450) 300

3,000 15,000 18,000

(a) TI costs last month in BWIP TI costs – current month Total Divided by EUP Unit TI costs

18.

9,400 80 600 10,080

(a) Beginning WIP Transferred In EUP-TI costs

17.

200 9,200

(a) Beginning WIP Transferred In Units to account for Transferred Out Ending WIP Lost units

16.

P 15,000 365,360 P380,360 ÷ 10,280 P 37

P 90,000 450,000 540,000 ÷ 18,000 P 30

(a) Beginning WIP Transferred In this month Lost units EUP – TI costs

100 4,800 ( 95) 4,805

4 19.

(a) TI costs last month in BWIP TI costs- current month Total Divided by EUP Unit transferred in costs

20.

P 19,350 124,800 P144,150 ÷ 4,805 P 30

(a) 205 units x P30 = P6,150

21.

22.

(b) Equivalent Units of Production – Materials: Completed and transferred out Ending WIP (100%) Abnormal lost units (100%) EUP – Materials

10,000 2,975 25 13,000

Unit material costs: (P60,000 + P304,000) ÷ 13,000

P

28

(a) 25 units x P28 = P700

23.

(a) Beginning WIP Transferred In Units added EUP

500 11,000 5,000 16,500

Or: Transferred Out (100%) Ending WIP (100%) EUP – TI costs 24.

(b) Transferred In costs – BWIP Transferred In costs – Current month Total TI costs Divided by EUP Unit TI costs

25.

15,500 1,000 16,500

(c) 1,000 units x P12 =

P12,000

P 33,000 165,000 P198,000 ÷ 16,500 P 12

5 26.

(c) Transferred Out to next department: From BWIP: (500 x 0%) From TI: (2,200 – 500) Ending WIP: (250 x 100%) Normal lost units: (50 x 100%) EUP – Materials

27.

-01,700

(c) Materials added during the month Divided by EUP Unit material cost

28.

1,700 250 50 2,000

P153,000 ÷ 2,000 P 76.50

(a) 250 units x P76.50 = P19,125

29.

(a) Equivalent Units of Production Completed and transferred out Ending WIP Normal lost units Abnormal lost units EUP

Units 9,000 2,000 100 50

Materials 9,000 2,000 100 50 11,150

Unit Costs: Materials: (P14,230 + P121,180) ÷ 11,150 Conversion costs: (P11,100 + P277,500) ÷ 9,750 Total unit cost 30.

Conversion 9,000 600 100 50 9,750

P12.1444 29.60 P41.7444

(d) 9,000 units x P41.7444 = P375,700

31.

(c) Materials: (2,000 x P12.1444) Conversion costs: (600 x P29.60) Costs of EWIP

32.

P24,289 17,760 P42,049

(a) 50 units x P41.7444 = P2,087

33.

(a) Equivalent Units of Production: Materials: Completed and transferred out: From BWIP: (1,000 x 0%) From SIP: (9,000 - 1,000)

-08,000

8,000

6 Ending WIP: (2,000 x 100%) Normal lost units: (100 x 100%) Abnormal lost units: (50 x 100) EUP

Conversion Costs: Completed and transferred out: From BWIP: (1,000 x 50%) From SIP Ending WIP: (2,000 x 30%) Normal lost units Abnormal lost units EUP 34.

2,000 100 50 10,150

500 8,000

(a) Materials: (P121,180 / 10,150) Conversion costs: (P277,500 / 9,250) Total unit cost

35.

P11.94 30.00 P41.94

(b) Completed BWIP: Cost last month Cost added this month: Conversion costs: (500 x P30) Total costs of completed BWIP Completed SIP: (8,000 x P41.94) Cost of normal lost units: (100 x P41.94) Total costs of units completed and transferred out

36.

P23,880 18,000 P41,880

(a) 50 units x P41.94 =

38.

P 14,230 15,000 29,230 3 35,520 4,194 P368,944

(a) Materials: (2,000 x P11.94) Conversion costs: (600 x P30) Costs of EWIP

37.

8,500 600 100 50 9,250

P2,097

(a) Materials: Transferred Out: From BWIP: (7,500 x P0%) From SIP: (72,500 – 7,500) 100% Ending WIP: (13,000 x 100%) Normal lost units: (1,100 x 100%) Abnormal lost units: (900 x 100%) EUP – Materials Conversion costs: Transferred Out:

-065,000

65,000 13,000 1,100 900 80,000

7 From BWIP: (7,500 x 60%) From SIP Ending WIP: (13,000 x 70%) Normal lost units: (1,100 x 75%) Abnormal lost units: (900 x 75%) EUP – CC 39.

4,500 65,000

(b) Unit costs: Materials: (P120,000 / 80,000) Conversion costs: (P320,400 / 80,100) Total unit costs

40.

P1.50 4.00 P5.50

Assignment of Costs: Completed and transferred out: From BWIP: Cost last month Cost added this month – CC: (4,500 x P4) Total costs of completed BWIP From SIP: (65,000 x P5.50) Total cost of units completed Cost of normal lost units: Materials: (1,100 x P1.50) P1,650 Conversion costs: (825 x P4) 3,300 Total costs of completed units after adjustment for lost units

4,950 P404,650

Ending WIP Materials: (13,000 x P1.50) Conversion costs: (9,100 x P4) Total costs of EWIP

P19,500 36,400 P55,900

P 1,350 2,700 P 4,050

(a) Equivalent Units of production Transferred Out Ending WIP Normal lost units Abnormal lost units EUP

42.

P 24,200 18,000 42,200 357,500 399,700

(a) Materials: (900 x P150) Conversion costs: (675 x P4) Cost of abnormal lost units

41.

69,500 9,100 825 675 80,100

Units 72,500 13,000 1,100 900

Materials 72,500 13,000 1,100 900 87,500

Conversion 72,500 9,100 825 675 83,100

(c) Unit costs: Materials: (P10,400 + P120,000) = P130,000/ 87,500 Conversion costs: (P13,800 = P320,400) = P334,200 / 83,100 Total unit costs

P1.49029 4.02166 P5.51195

8 Assignment of Costs: Transferred Out: (72,500 x P5.51195) Cost of normal lost units: Materials: (1,100 x P1.49029) Conversion costs: (825 x P4.02166) Total costs of units transferred out

P399,616 P1,639 3,318

Ending WIP: Materials: (13,000 x P1.49029) Conversion costs: (9,100 x P4.02166) Cost of EWIP 43.

P19,374 36,597 P55,971

(b) Materials: (900 x P1.49029) Conversion costs: (675 x P4.02166) Cost of abnormal lost units

44.

P 1,341 2,715 P 4,056

(a) Equivalent Units of Production Completed Ending WIP Normal spoilage (70,000 x 10%) Abnormal spoilage EUP

45.

Units 50,000 20,000 7,000 3,000

Cost of normal lost units: Transferred In costs: (7,000 x P9.13) Cost added this department: Conversion costs: (5,600 x P16.80) Cost of normal lost units

CC 50,000 19,000 5,600 2,400 77,000

P 9.13 9.36 16.80 P35.29

P 63,910 94,080 P157,990

(d) Completed and transferred out: Completed and transferred out: (50,000 x P35.29) Cost of normal lost units: (P157,990 x 50/70) Adjusted cost of units completed and transferred out

47.

DM 50,000 20,000 0 0 70,000

(a) Unit costs: Transferred In costs: (82,900 + 647,500) ÷ 80,000 Cost added this department: Materials: (P0 + P655,200) ÷ 70,000 Conversion cost: (P42,000 + P1,251,600) ÷ 77,000 Total unit costs

46.

4,957 P404,573

P1,764,500 112,850 P1,877,350

(a) Ending work in process: Transferred In costs: (20,000 x P9.13)

P182,600

9 Cost added: Materials: (20,000 x P9.36) Conversion costs: (19,000 x P16.80) Cost of normal lost units: (P157,990 x 20/70) Cost of EWIP 48.

P187,200 319,200

(a) Transferred In costs: (3,000 x P9.13) Cost added: Conversion costs: (2,400 x P16.80) Cost of abnormal lost units

P27,390 40,320 P67,710

Solutions to Problems

Problem 13-1

1.

2.

506,400 45,140 P734,140

Assembly Department Equivalent Units of Production Month of May 1010 Materials: Transferred Out to next department Ending work in process: (100%) Lost units EUP

4,940 810 350 6,100

Labor: Transferred Out to next department Ending work in process: (810 x 60%) Lost units EUP

4,940 486 350 5,776

Overhead: Transferred Out to next department Ending work in process: (810 x 80%) Lost units EUP

4,940 648 350 5,938

Assembly Department Cost of Production Report Month of May 2010 Quantity Schedule Beginning WIP Started in process Total to account for

Units 200 5,900 6,100

10 Transferred Out to next department Ending WIP Lost units Total accounted for Cost Schedule Materials: Beginning WIP Current month Total materials Labor: Beginning WIP Current month Total labor Overhead: Beginning WIP Current month Total overhead Total costs to account for Costs accounted for: Transferred Out to next department: Completed Cost of lost units Costs of units transferred out Ending WIP: Materials Labor Overhead Total EWIP Total costs accounted for

4,940 810 350 6,100 Total Costs P 37,498 847,002 884,500 8,268 173,676 181,944 22,764 410,710 433,474 P1,499,918

= = ÷

EUP Unit Costs 200 5,900 6,100 = P145.00

÷

5,776

=

31.50

÷

5,938

=

73.00 P249.50

P1,232,530 87,325 1,319,855

= =

4,940 350

x x

P249.50 249.50

117,450 15,309 47,304 180,063 P1,499,918

= = =

810 486 648

x x x

145.00 31.50 73.00

Problem 13-2

1.

Mixing Department Equivalent Units of Production – Average Month of June 2010 Transferred In Costs: Beginning work in process Transferred In from prior department EUP

500 14,300 14,800

Materials: Transferred Out to finished goods Ending work in process: (900 x 100%) Normal lost units: (300 x 100%) EUP

13,600 900 300 14,800

Conversion costs: Transferred Out to finished goods Ending work in process: (900 x 75%) Normal lost units: (300 x 100%) EUP

13,600 675 300 14,575

11 2.

Mixing Department Cost of Production Report Month of June 2010 Quantity Schedule Beginning work in process Transferred In Total to account for

Units 500 14,300 14,800

Transferred Out to finished goods Ending work in process Normal lost units Total accounted for

13,600 900 300 14,800

Cost Schedule Transferred In costs: Beginning WIP Current month Total Transferred In costs Cost in this department: Materials: BWIP Current month Total materials CC: BWIP Current month Total CC Total costs this department Total costs to account for Costs Accounted For: Transferred Out to finished goods: Completed Normal lost units Total costs Ending work in process: Transferred In costs Cost this department: Materials Conversion costs Total EWIP Total costs accounted for

Total Costs P

43,540 752,404 795,944

37,620 480,380 518,000 78,350 1,350,000 1,428,350 1,946,350 P2,742,294

EUP

Unit Costs

= 500 = 14,300 ÷ 14,800 =

P 53.78

÷

14,800

=

35.00

÷

14,575

=

98.00 P186.78

P2,540,208 56,034 2,596,242

= =

13,600 300

x x

P186.78 186.78

48,402

=

900

x

53.78

31,500 66,150 146,052 P2,742,294

= =

900 675

x x

35.00 98.00

Problem 13-3 1.

Finishing Department Equivalent Units of Production Month of July 2010 Transferred In Costs: Beginning work in process Transferred In from prior department EUP

500 5,300 5,800

12

2.

Materials: Transferred Out to finished goods Ending work in process: (450 x 80%) Normal lost units: (150 x 100%) EUP

5,200 360 150 5,710

Conversion costs: Transferred Out to finished goods Ending work in process: (450 x 331/3%) Normal lost units: (150 x 100%) EUP

5,200 150 150 5,500

Finishing Department Cost of Production Report Month of July 2010 Quantity Schedule Beginning work in process Transferred In from prior department Total to account for

Units 500 5,300 5,800

Accounted for as follows: Transferred Out to next department Ending work in process Normal lost units Total accounted for

5,200 450 150 5,800

Cost Schedule Transferred In costs: Beginning WIP Current month Total TI costs Cost this department: Materials: Beginning WIP Current month Total materials CC: Beginning WIP Current month Total CC Total cost in this department Total costs to account for Costs accounted for: Transferred Out to next department: Completed Cost of normal lost units Total costs of TO Ending work in process: Transferred in costs Cost in this department: Materials Conversion costs Total EWIP Total accounted for

Total Costs P 24,200 202,000 226,200 12,200 121,985 134,185 6,720 151,680 158,400 P292,585 P518,785

EUP

Unit Costs

÷

5,800

=

P39.00

÷

5,710

=

23.50

÷

5,500

=

28.80 P91.30

P474,760 13,695 488,455

= =

5,200 150

x x

P91.30 91.30

17,550

=

450

x

39.00

8,460 4,320 30,330 P518,785

= =

360 x 150 x

23.50 28.80

13

Problem 13-4 1.

2.

Finishing Department Equivalent Units of Production Month of April 2010 Transferred In Costs: Beginning work in process Transferred In from prior department Normal lost units EUP

1,000 36,800 ( 200) 37,600

Materials: Transferred Out to finished goods Ending work in process: (3,000 x 100%) Abnormal lost units: (100 x 100%) EUP

34,500 3,000 100 37,600

Conversion Costs: Transferred Out to finished goods Ending work in process: (3,000 x 60%) Abnormal lost units: (100 x 100%) EUP

34,500 1,800 100 36,400

Finishing Department Cost of Production Report Month of April 2010 Quantity Schedule Beginning work in process Transferred In from prior department Total to account for

Units 1,000 36,800 37,800

Transferred Out to finished goods Ending work in process Normal lost units Abnormal lost units Total accounted for

34,500 3,000 200 100 37,800

Cost Schedule Transferred In costs: Beginning WIP Current month Total TI costs Costs added in this department: Materials: BWIP Current month Total materials CC: BWIP Current month Total CC Total costs this department Total costs to account for

Total Costs P

12,000 668,560 680,560

8,400 518,000 526,400 13,680 940,000 953,680 1,480,080 P2,160,640

EUP

Unit Costs

÷

37,600 =

P18.10

÷

37,600 =

14.00

÷

36,400 =

26.20 P58.30

14

Costs accounted for as follows: Transferred Out to finished goods Ending work in process: Transferred In costs Cost added this department: Materials Conversion costs Total EWIP Abnormal lost units: Transferred In costs Cost added this department: Materials Conversion costs Total abnormal lost units Total costs accounted for

3.

P2,011,350

=

34,500 x

P58.30

54,300

=

3,000 x

18.10

42,000 47,160 143,460

= =

3,000 x 1,800 x

14.00 26.20

1,810

=

100 x

18.10

1,400 2,620 5,830 P2,160,640

= =

100 x 100 x

14.00 26.20

Finished goods Loss from abnormal spoilage Work in process To record costs transferred to finished goods and abnormal spoilage.

2,011,350 5,830 2,017,180

Problem 13-5 1.

2.

Mixing Department Equivalent Units of Production Month of March 2010 Transferred In Costs: Transferred Out to next department Ending work in process EUP

2,900 100 3,000

Ma...