Reference no: EM132841751
Problem 1 - Started this cycle 2,000 units
Beginning Inventory (30% complete to Material B and 60% complete for conversion) 700 units
Ending Inventory (50% complete to Material B and 80% complete for conversion) 500 units
Beginning inventory Cost:
Material A 14,270
Material B 5,950
Conversion 5,640
Current Period Cost:
Material A 40,000
Material B 70,000
Conversion 98,100
Material A is added at the start of production, while material B is added uniformly throughout the process.
1. Assuming a weighted average method of process costing, compute EUP units for Material A and B.
a. 2,700 and 2,280, respectively
b. 2,000 and 2,240, respectively
c. 2,700 and 2,450, respectively
d. 2,240 and 2,700, respectively
2. Assuming a weighted average method of process costing, compute the average cost per unit for Material A.
a. P20.10
b. P20.00
c. P31.25
d. P31.00
3. Assuming a FIFO method of process costing, compute EUP for conversion.
a. 2,240
b. 2,180
c. 2,280
d. 2,700
4. Assuming a FIFO method of process costing, compute the average cost per EUP for Material B.
a. P20.10
b. P20.00
c. P31.25
d. P31.00
Problem 2 - Bitamina Inc. manufactures their product in two departments in a continuous process. Production data for the month of October 2008 are as follows:
Beginning work in Process, 40% completed 500 units
Received from preceding department 2,000 units
Normal spoilage 200 units
Abnormal Spoilage 300 units
Units completed and transferred out 1,700 units
Ending work in process, 1/3 completed 300 units
Conversion Cost in beginning inventory P610
Current period conversion cost P3,990
All spoilage ocurs at the end of the process.
1. What is the conversion cost of abnormal spoilage? (FIFO and Average Method respectively)
a. P570 P519
b. P657 P600
c. P570 P600
d. P600 P570
2. What is the conversion cost per equivalent unit (FIFO and Average Method respectively)
a. P1.90 P1.73
b. P2.19 P2.00
c. P2.00 P1.90
d. P1.90 P2.00
3. What is the conversion cost of normal spoilage? (FIFO and Average Method respectively)
a. P438 P400
b. P380 P346
c. P400 P380
d. P380 P400
Problem 3 - Face Shield Co. makes small metal containers. The company began December with 250 containers in process that were 30% complete to material and 40% complete to conversion costs. During the month, 5,000 containers were started. At month end, 1,700 containers were still in process (45% complete to material and 80% complete to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs?
a. 4,610
b. 4,910
c. 3,450
d. 4,560
Problem 4 - Hugas Camay Co. had beginning Work in Process Inventory of 5,000 units that were 40% complete to conversion costs. Santing Co. started and completed 42,000 units this period and had ending Work in Process Inventory of 12,000 units. How many units were started this period?
a. 54,000
b. 59,000
c. 42,000
d. 47,000