PRACTICAL ACCOUNTING 2

1. Short Company transferred 5,500 units to Finished Goods Inventory during June. On June 1, the company had 300 units on hand (40% complete as to both material and conversion costs). On June 30, the company had 800 units (10% complete as to material and 20% complete as to conversion costs). The number of units started and completed during June was a. 5,200 c. 5,500 b. 5,380 d. 6,300 2. Brown Co. started 9,000 units in October. The company transferred 7,000 finished units and ended the period with 3,500 units that were 40% complete as to both material and conversion costs. Beginning Work in Process Inventory units were a. 500 c. 1,500 b. 600 d. 2,000 3. X Co. had beginning Work in Process Inventory of 5,000 units that were 40% complete as to conversion. X 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 c. 42,000 b. 59,000 d. 47,000 4. Winn Co. uses weighted average process costing system. Material is added at the start of production. Winn Co. started 13,000 units into production and had 4,500 units in process at the start of the period that was 60% complete as to conversion. If Winn transferred out 11,750 units, how many units were in ending Work in Process Inventory? a. 1,250 c. 5,750 b. 3,500 d. 3,000 5. Murphy Co. uses a weighted average process costing system and started 30,000 units this month. Murphy had 12,000 units that were 20% complete as to conversion in beginning Work in Process Inventory and 3,000 units that were 40% complete as to conversion in ending Work in Process Inventory. What are equivalent units for conversion? a. 37,800 c. 40,200 b. 42,000 d. 40,800 6. Kim Co. makes small metal containers. The company began December with 250 containers in process that were 30% complete as to material and 40% complete as to conversion. During the month, 5,000 containers were started. At month end, 1,700 containers were still in process (45% complete as to material and 80% complete as to conversion). Using the weighted average method, what are the equivalent units for conversion? a. 4,610 c. 3,450 b. 4,910 d. 4,560 7. Zammillo Co. uses a FIFO process costing system. The company had 5,000 units that were 60% complete as to conversion at the beginning of the month. The company started 22,000 units this period and had 7,000 units in ending Work in Process Inventory that were 35% complete as to conversion. What are equivalent units for material, if material is added at the beginning of the process? a. 18,000 c. 25,000 b. 22,000 d. 27,000 8. Lisa Co. makes fabric-covered hatboxes. The company began August with 500 boxes in process that were 100% complete as to cardboard, 80% complete as to cloth and 60% complete as to conversion. During the month, 3,300 boxes were started. On August 31,350 boxes were in process (100% complete as to cardboard, 70% complete as to cloth and 55% complete as to conversion). Using the FIFO method, What are equivalent units for cloth?
PROCESS COSTING

PRACTICAL ACCOUNTING 2
a. 3,450 c. 3,395 b. 3,295 d. 3,595 Use the following information for questions 9-11. 9. Forte Co. has the following information for May: Beginning Work In Process Inventory (70% complete as to conversion) 6,000 units Started 24,000 units Ending Work In Process Inventory (10% complete as to conversion) 8,500 units Beginning WIP Inventory Costs: Material P 23,400 Conversion 50,607 Current Period Costs: Material P 31,500 Conversion 76,956 All material is added at the start of the process and all finished products are transferred out. How many units were transferred out in May? a. 15,500 c. 21,500 b. 18,000 d. 24,000 10.Assume that weighted average process costing is used. What is the cost per equivalent unit for material? a. P 1.83 c. P 0.55 b. P 1.05 d. P 1.31 11.Assume that FIFO process costing is used. What is the cost per equivalent unit for conversion? a. P 7.03 c. P 4.24 b. P 3.44 d. P 5.71

12. The December 25th Co. makes wreaths in two departments:

Forming and Decorating. Forming began the month with 500 wreaths in process that were 100% complete as to materials and 40% complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100% complete as to material and 50% complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in Forming Department are as follows: Beginning Work in Process Costs Materials P 1,000 Conversion 1,500 Current Costs Material Conversion P 3,200 5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80% complete as to material and 90% complete as to conversion. The Department had 300 units in ending Work in Process that were 50% complete as to material and 75% complete as to conversion. Decorating uses FIFO and costs associated with Decorating are: Beginning WIP Inventory: Transferred In P 1,170 Material 4,320 Conversion 6,210 Current Period: Transferred In
PROCESS COSTING

PRACTICAL ACCOUNTING 2
Material Conversion P 67,745 95,820

How many units were transferred to Decorating during the month? a. 7,000 c. 4,900 b. 600 d. 5,950 a. b. 13. What was the cost transferred out of Forming during the month? P 6,419 c. P 8,330 P 5,341 d. P 8,245 14. Disregard your answer in to question 12. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units as to costs in Decorating for the transferred-in cost component. 7,700 c. 8,600 8,000 d. 7,400 15. Disregard your answer in to question 12. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units as to costs in Decorating for material. 8,000 c. 8,330 8,450 d. 7,970 16.Disregard your answer in to question 12. Assume 8,000 units were transferred to Decorating. Compute the number of equivalent units as to costs in Decorating for conversion. 7,985 c. 8,360 8,465 d. 7,925 17. Disregard your answer in to question 12. Assume 8,000 units were transferred to Decorating at a total cost of P16,000. What is the material cost per equivalent unit as to costs in Decorating? P8.80 c. P8.50 P8.65 d. P9.04 18.Disregard your answer in to question 12. Assume 8,000 units were transferred to Decorating at a total cost of P16,000. What is the conversion cost per equivalent unit in Decorating? P 12.00 c. P 11.32 P 12.78 d. P 11.46 19.Assume material cost per EUP is P8.00 and the conversion cost per EUP Is P15 in Decorating. What is the cost of completing the units in beginning inventory? P 11,940 c. P 1,380 P 960 d. P 1,860 20.BCW Co. adds material at the start to its production process and has the following information available for November: Beginning Work in Process Inventory ( 40% complete as to conversion) 7,000 units Started this period 32,000 units Ending Work in Process Inventory (25% complete as to conversion) 2,500 units Transferred out ? a. b. 21. a. Compute the number of units started and completed in November. 29,500 c. 36,500 39,000 d. 34,500 Calculate equivalent units of production for material using FIFO. 36,800 c. 39,000

a. b.

a. b.

a. b.

a. b.

a. b.

a. b.

PROCESS COSTING

PRACTICAL ACCOUNTING 2
b. 22. a. b. 23. a. b. 24. a. b. 32,000 d. 37,125

Calculate equivalent units of production for conversion using FIFO. 34,325 c. 37,125 30,125 d. 39,000 Calculate equivalent units of production for material using weighted average. 34,325 c. 37,125 32,000 d. 39,000 Calculate equivalent units of production for conversion using weighted average. 39,925 c. 34,325 37,125 d. 38,375

25. Storey Co. adds material at the start of production. February information for the company follows: Beginning Work in Process Inventory ( 45% complete as to conversion) Started this period Ending Work in Process Inventory (80% complete as to conversion) 10,000 units 120,000 units 8,200 units

Beginning Work in Process Inventory Costs: Materials P 24,500 Conversion 68,905 Current Period Costs: Material P 75,600 Conversion 130,053 a. b. 26. a. b. 27. a. b. 28. a. b. 29. a. b. How many units must be accounted for? 128,200 138,200 c. 130,000 d. 118,200

What is the total cost to account for? P205,653 c. P 93,405 P299,058 d. P274,558 How many units were started and completed in the period? 120,000 c. 121,800 111,800 d. 130,000 What are the equivalent units for materials using the weighted average method? 120,000 c. 130,000 128,360 d. 123,860 What are the equivalent units for materials using the FIFO method? 130,000 c. 111,800 125,500 d. 120,000

30. What are the equivalent units for conversion using the weighted average method? a. 128,360 c. 130,000 b. 123,440 d. 120,000 31. a. b. What are the equivalent units for conversion using the FIFO method? 128,360 c. 118,360 123,860 d. 122,860

32. What is the material cost per equivalent unit using the weighted average method?
PROCESS COSTING

PRACTICAL ACCOUNTING 2
a. b. P 0.58 P 0.62 c. P 0.77 d. P 0.82

a. b. a. b.

33. What is the conversion cost per equivalent unit using the weighted average method? P 1.61 c. P 1.05 P 1.55 d. P 1.01 34. What is the cost of units completed using the weighted average? P 266,742 c. P 278,400 P 282,576 d. P 237,510 What is the conversion cost per equivalent unit using the FIFO method? P 1.05 c. P1.61 P 0.95 d. P1.55 What is the cost of all units transferred out using the FIFO method? P 204,624 c. P 287,004 P 191,289 d. P 298,029

35. a. b. 36. a. b.

37. The following information relate to I M Cute Company: Beginning Inventory ( 30% complete for material B and 60% complete for conversion) 700 units Started this cycle 2,000 units Ending Inventory (50% complete as to material B and 80% complete for conversion) 500 units Beginning Inventory Costs: Material A P 14,270 Material B 5,950 Conversion 5,640 Current Period Costs: Material A P 40,000 Material B 70,000 Conversion 98,100 Material A is added at the start of production, while Material B is added when production is 40% complete. Assuming a weighted average method of process costing, compute EUP units for Materials A and B. 2,700 and 2,280 respectively 2,700 and 2,450 respectively 2,000 and 2,240 respectively 2,240 and 2,700 respectively 38. Assuming a FIFO method of process costing, compute EUP units for Materials A and B. 2,700 and 2,280 respectively 2,700 and 2,450 respectively 2,000 and 2,240 respectively 2,250 and 2,880 respectively 39. Assuming a weighted average method of process costing, compute EUP for conversion. 2,280 c. 2,000 2,180 d. 2,700

a. b. c. d.

a. b. c. d.

a. b.

PROCESS COSTING

PRACTICAL ACCOUNTING 2
40. a. b. Assuming a FIFO method of process costing, compute EUP for conversion. 2,240 c. 2,280 2,180 d. 2,700

a. b.

41.Assuming a weighted average method of process costing, compute the average cost per unit for Material A. P 20.10 c. P 31.25 P 20.00 d. P 31.00 42.Assuming a FIFO method of process costing, compute the average cost per EUP for Material A. P 31.25 c. P 20.00 P 20.10 d. P 31.00 43.Assuming a FIFO method of process costing, compute the average cost per EUP for Material B. P 20.10 c. P 20.00 P 31.25 d. P 31.00 44.Assuming a weighted average method of process costing, compute the average cost per EUP for Material B. P 20.00 c. P 20.10 P 31.25 d. P 31.00 45. Assuming a FIFO method of process costing, compute the average cost per EUP for conversion. P 45.50 c. P 43.03 P 45.00 d. P 47.59 46. Assuming a weighted average method of process costing, compute the average cost per EUP for conversion. P 45.50 c. P 43.03 P 45.00 d. P 47.59 47. The following information is available for K Co. for June: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units Transferred Out 72,500 units Beginning Work in Process Costs: Materials P 10,400 Conversion 13,800 Current Costs: Materials Conversion P 120,000 350,000

a. b.

a. b.

a. b.

a. b.

a. b.

All materials are added at the start of production and the inspection point is at the end of the process. a. b. 48. a. b. What are equivalent units of production for materials using FIFO? 80,000 c. 78,900 79,100 d. 87,500 What are the equivalent units of production for conversion costs using FIFO? 79,700 c. 81,100 79,500 d. 80,600

49. What are the equivalent units of production for materials using weighted average?
PROCESS COSTING

PRACTICAL ACCOUNTING 2
a. b. 86,600 87,500 c. 86,400 d. 85,500

a. b. a. b.

50. What are equivalent units of production for conversion costs using weighted average? 83,600 c. 82,500 82,700 d. 81,600 51. What is cost per equivalent unit for materials using FIFO? P 1.63 c. P 1.50 P 1.37 d. P 1.56 What is cost per equivalent unit for conversion cost using FIFO? P 4.00 c. P 4.34 P 4.19 d. P 4.38 What is cost per equivalent unit for materials using weighted average? P 1.49 c. P 1.56 P 1.63 d. P 1.44 What is cost per equivalent unit for conversion costs using weighted average? P 4.19 c. P 4.55 P 4.41 d. P 4.35 55.What is the cost assigned to ending inventory using FIFO? P 75,920 c. P 56,420 P 58,994 d. P 53,144 56.What is the cost assigned to abnormal spoilage using FIFO? P 1,350 c. P 5,256 P 3,906 d. P 6,424 57.What is the cost assigned to normal spoilage and how is it classified using the weighted average? P 6,193 allocated between WIP and Transferred Out P 6,424 assigned to units Transferred Out P 6,193 assigned to loss account P 6,424 assigned to units Transferred Out 58.What is the total cost assigned to goods transferred out using weighted average? P 435,080 c. P 428,656 P 429,824 d. P 423,400 The following information is available for OP Company for the current year: Beginning WIP (75% complete) 14,500 units Started 75,000 units Ending WIP (60% complete) 16,000 units Abnormal Spoilage 2,500 units Normal Spoilage (continuous) 5,000 units Transferred Out 66,000 units All materials are added at the start of production. Cost of Beginning Work in Process Materials P 25,100 Conversion 50,000 Current Cost Materials P120,000 Conversion 300,000 59.Using weighted average, what are equivalent units for materials?
PROCESS COSTING

52. a. b. 53. a. b. 54. a. b. a. b. a. b.

a. b. c. d. a. b.

PRACTICAL ACCOUNTING 2
a. b. 60. a. b. a. b. a. b. a. b. 82,000 89,500 c. 84,500 d. 70,000

Using weighted average, what are equivalent units for conversion costs? 80,600 c. 83,100 78,100 d. 75,600 61.What is the cost per equivalent unit for materials using weighted average? P 1.72 c. P 1.77 P 1.62 d. P 2.07 62.What is the cost per equivalent unit for conversion costs using weighted average? P 4.62 c. P 4.48 P 4.21 d. P 4.34 63.What is the cost assigned to normal spoilage using weighted average? P31,000 c. P30,850 P15,500 d. None of the above 64.Assume that the cost per EUP for materials and conversion are P 1.75 and P 4.55, respectively. What is the cost assigned to ending Work in Process? P 100,800 c. P 103,180 P 87,430 d. P 71,680 65.Using FIFO, what are equivalent units for materials? 75,000 c. 84,500 72,500 d. 70,000 66.Using FIFO, what are equivalent units for conversion costs? 72,225 c. 69,725 67,225 d. 78,100 67.Using FIFO, what is the cost per equivalent unit for materials? P 1.42 c. P 1.71 P 1.66 d. P 1.60 68.Using FIFO, what is the cost per equivalent unit for conversion costs? P 4.46 c. P 4.30 P 4.15 d. P 3.84 69.Assume that the FIFO EUP cost for materials and conversion are P 1.50 and P 4.75, respectively. Using FIFO, what is the total cost assigned to the units transferred out? P 414,194 c. P 445,444 P 339,094 d. P 396,975 70.T Company has the following information for July: Units started 100,000 units Beginning WIP (35% complete) 20,000 units Normal Spoilage (discrete) 3,500 units Abnormal Spoilage 5,000 units Ending WIP (70% complete) 14,500 units Transferred Out 97,000 units Beginning Work in Process Costs: Materials P 15,000 Conversion 10,000 All materials are added at the start of the production process. T Co. inspects goods at 75% completion as to conversion. What are the equivalent units of production for materials assuming FIFO?
PROCESS COSTING

a. b. a. b. a. b. a. b. a. b.

a. b.

PRACTICAL ACCOUNTING 2
a. b. a. b. 100,000 96,500 c. 95,000 d. 120,000

71. What are the equivalent units of production for conversion costs, assuming FIFO? 108,900 c. 108,650 103,900 d. 106,525 72.Assume that the costs per EUP for materials and conversion are P 1.00 and P 1.50, respectively. What is the amount of the period cost for July using FIFO? P0 c. P 10,625 P 9,375 d. P 12,500 Assume that the costs per EUP for materials and conversion are P 1.00 and P 1.50, respectively. Using FIFO, what is the total cost assigned to the transferred out units (rounded to the nearest peso)? P 245,750 c. P 237,000 P 244,438 d. P 224,938 What are equivalent units of production for materials assuming weighted average is used? 107,000 c. 120,000 116,500 d. 115,000 75.What are equivalent units of production for conversion costs assuming weighted average is used? 113,525 c. 114,775 114,400 d. 115,650 76.Assume that the costs per EUP for materials and conversion are P 1.00 and P 1.50, respectively. What is the cost assigned to normal spoilage, using weighted average, and where is it assigned? Value Assigned To a. P 7,437.50 Units transferred out and EI b. P 7,437.50 Units transferred out c. P 8,750.00 Units transferred out and EI d. P 8,750.00 Units transferred out 77.Assume that the costs per EUP for materials and conversion are P 1.00 and P 1.50, respectively. Assuming that weighted average is used, what is the cost assigned to ending inventory? P 29,725.00 P 37,162.50 P 38,475.00 P 36,250.00

a. b. 73. a. b. 74. a. b.

a. b.

a. b. c. d.

PROCESS COSTING