Reference no: EM132971945

Question - Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation. The company uses the weighted average method of process costing. During June, the following data were recorded for the Finishing Department.

Units of beginning Work in Process Inventory 10,000

Percentage of completion of Beg Inventory 25%

Cost of direct materials in beg WIP P0

Units started 70,000

Units Completed 50,000

Units in ending WIP Inventory 20,000

Percentage of completion of Ending Inventory 95%

Spoiled Units 10,000

Costs added during the current period:

Direct Materials P655,200

Direct Labor P635,600

Manufacturing Overhead P616,000

WIP, Beg:

Transferred In Costs P82,900

Conversion Costs P42,000

Costs if units transferred in during current period P647,500Conversion costs are incurred evenly during the process. Direct materials costs are incurred when production is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10% of all good units that pass inspection.

Required -

1. What are the equivalent units of production for direct materials and conversion costs?

a. 70,000 and 77,000

b. 50,000 and 69,000

c. 60,000 and 77,000

d. 70,000 and 75,000

2. What is the cost of normal lost units?

a. P157,990

b. P150,950

c. P155,990

d. P145,500

3. What is the cost of units completed and transferred out?

a. P1,877,350

b. P1,864,500

c. P1,787,350

d. P1,770,500

4. What is the cost assigned to units in ending work in process?

a. P734,140

b. P750,150

c. P835,140

d. P689,000

5. What is the cost assigned to abnormal lost units?

a. P67,710

b. P77,600

c. P87,610

d. P97,710