Reference no: EM132726468
Questions -
Q1. For each of the following independent cases, compute the equivalent production using [1] FIFO and [2] Average.
A. Work in process, beginning, 12,000 units - ¼ completed and 8,000 units 1/8 completed; started in process, 50,000 units; transferred and completed, 40,000 units; work in process end, 1/6 completed.
B. Work in process beginning: 10,000 units, 2/5 completed 10,000 units, 3/5 and 5,000 units, 2/5 completed. Placed into process: 40,000 units Finished and transferred: 45,000 units Work in process end: ½ is 4/5 completed and the balance is ½ completed.
C. Work in process beginning: 1/3 completed Started in process: 44,000 units Transferred: 30,000 units Work in process end: 20,000 units, 1/5 completed
D. Work in process beginning: 6,000 units, ½ completed 9,000 units, 1/3 completed Started in process: 30,000 units Completed and transferred: 20,000 units Work in process end: ¼ is 2/5 completed; ½ is 4/5 completed; balance 1/10 completed
E. Work in process beginning: 5/8 completed Started in process: 10,000 units Transferred out: 8,000 units Completed and on hand: 1,600 units Work in process, end: 16,400; 4/5 completed
Q2. The Lighting Manucturing Company uses average costing and manufactures a single product in two producing departments. For the month of April, the cost and production data were as follows:
Mixing Finishing
Quantity Data:
WIP, beg 5,000 6,000
Stage of Completion Materials 100% -0-
Conversion Cost 50% 60%
Started in Process 10,000
Transferred to the next Dep't. 10,000 11,000
WIP, end 5,000 5,000
Stage of Completion Materials 80% -0-
Conversion Cost 40% 50%
Cost data:
Cost in WIP, beg
Costs from preceding Dep't - $63,000
Materials $42,000 -
Direct labor 35,000 62,500
Factory Overhead 20,500 45,000
Costs added this month
Materials 90,000 -
Direct labor 52,000 140,000
Factory Overhead 37,500 90,000
Prepare a cost of production report for both departments for the month of April.
Q3. Monsters Inc. uses two producing departments namely X and Y. In Dep't Y, the second dept, costs are applied evenly throughout the process. Prepare the cost of production report of Dept Y using the following data for February of the current year:
WIP, beg - 6,000 units, ¼ done, P19,710 (50% of which was from department X, 20% for materials, 10% labor, 20% overhead)
Received from Dep't X - 35,000 units @ P3
Factory Costs : Materials, P20,770; Direct Labor, P8,375; FOH, P16,750
WIP, end - 8,000 units ¼ done.