do it yourself (diy #1)

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. 5,500b. 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. 1,500b. 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. 42,000b. 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. 5,750b. 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. 40,200b. 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. 3,450b. 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. 25,000b. 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?

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a. 3,450 c. 3,395b. 3,295 d. 3,595Use 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. 21,500b. 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 0.55b. 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 4.24b. 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 CostsMaterials P 1,000Conversion 1,500

Current CostsMaterial P 3,200Conversion 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 1,170Material 4,320Conversion 6,210

Current Period:Transferred In ?

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Material P 67,745Conversion 95,820

How many units were transferred to Decorating during the month?a. 7,000 c. 4,900b. 600 d. 5,950

13. What was the cost transferred out of Forming during the month?a. P 6,419 c. P 8,330b. 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.a. 7,700 c. 8,600b. 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.a. 8,000 c. 8,330b. 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.a. 7,985 c. 8,360b. 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?a. P8.80 c. P8.50b. 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?a. P 12.00 c. P 11.32b. 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?a. P 11,940 c. P 1,380b. 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 unitsEnding Work in Process Inventory (25% complete as to conversion) 2,500 unitsTransferred out ?

Compute the number of units started and completed in November.a. 29,500 c. 36,500b. 39,000 d. 34,500

21. Calculate equivalent units of production for material using FIFO.a. 36,800 c. 39,000

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b. 32,000 d. 37,125

22. Calculate equivalent units of production for conversion using FIFO.a. 34,325 c. 37,125b. 30,125 d. 39,000

23. Calculate equivalent units of production for material using weighted average.a. 34,325 c. 37,125b. 32,000 d. 39,000

24. Calculate equivalent units of production for conversion using weighted average.a. 39,925 c. 34,325b. 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) 10,000 units

Started this period 120,000 unitsEnding Work in Process Inventory (80% complete as to conversion) 8,200 units

Beginning Work in Process Inventory Costs:Materials P 24,500Conversion 68,905

Current Period Costs:Material P 75,600Conversion 130,053

How many units must be accounted for?a. 128,200 c. 130,000b. 138,200 d. 118,200

26. What is the total cost to account for?

a. P205,653 c. P 93,405b. P299,058 d. P274,558

27. How many units were started and completed in the period?a. 120,000 c. 121,800b. 111,800 d. 130,000

28. What are the equivalent units for materials using the weighted average method?a. 120,000 c. 130,000b. 128,360 d. 123,860

29. What are the equivalent units for materials using the FIFO method?a. 130,000 c. 111,800b. 125,500 d. 120,000

30. What are the equivalent units for conversion using the weighted average method?

a. 128,360 c. 130,000b. 123,440 d. 120,000

31. What are the equivalent units for conversion using the FIFO method?a. 128,360 c. 118,360b. 123,860 d. 122,860

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

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a. P 0.58 c. P 0.77 b. P 0.62 d. P 0.82

33. What is the conversion cost per equivalent unit using the weighted average method?

a. P 1.61 c. P 1.05b. P 1.55 d. P 1.01

34. What is the cost of units completed using the weighted average?a. P 266,742 c. P 278,400b. P 282,576 d. P 237,510

35. What is the conversion cost per equivalent unit using the FIFO method?

a. P 1.05 c. P1.61b. P 0.95 d. P1.55

36. What is the cost of all units transferred out using the FIFO method?

a. P 204,624 c. P 287,004b. P 191,289 d. P 298,029

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 14,270Material B 5,950Conversion 5,640

Current Period Costs:Material A P 40,000Material B 70,000Conversion 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.a. 2,700 and 2,280 respectivelyb. 2,700 and 2,450 respectivelyc. 2,000 and 2,240 respectivelyd. 2,240 and 2,700 respectively

38. Assuming a FIFO method of process costing, compute EUP units for Materials A and B.

a. 2,700 and 2,280 respectivelyb. 2,700 and 2,450 respectivelyc. 2,000 and 2,240 respectivelyd. 2,250 and 2,880 respectively

39. Assuming a weighted average method of process costing, compute EUP for conversion.

a. 2,280 c. 2,000b. 2,180 d. 2,700

PROCESS COSTING 5


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

41.Assuming a weighted average method of process costing, compute the average cost per unit for Material A.a. P 20.10 c. P 31.25b. P 20.00 d. P 31.00

42.Assuming a FIFO method of process costing, compute the average cost per EUP for Material A.a. P 31.25 c. P 20.00b. P 20.10 d. P 31.00

43.Assuming a FIFO method of process costing, compute the average cost per EUP for Material B.a. P 20.10 c. P 20.00b. 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.a. P 20.00 c. P 20.10b. P 31.25 d. P 31.00

45. Assuming a FIFO method of process costing, compute the average cost per EUP for conversion.

a. P 45.50 c. P 43.03b. P 45.00 d. P 47.59

46. Assuming a weighted average method of process costing, compute the average cost per EUP for conversion.a. P 45.50 c. P 43.03b. P 45.00 d. P 47.59

47. The following information is available for K Co. for June:Started this month 80,000 unitsBeginning WIP (40% complete) 7,500 unitsNormal spoilage (discrete) 1,100 unitsAbnormal spoilage 900 unitsEnding WIP (70% complete) 13,000 unitsTransferred Out 72,500 unitsBeginning Work in Process Costs:

Materials P 10,400Conversion 13,800

Current Costs:Materials P 120,000Conversion 350,000

All materials are added at the start of production and the inspection point is at the end of the process.

What are equivalent units of production for materials using FIFO?a. 80,000 c. 78,900b. 79,100 d. 87,500

48. What are the equivalent units of production for conversion costs using FIFO?a. 79,700 c. 81,100b. 79,500 d. 80,600

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

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

50. What are equivalent units of production for conversion costs using weighted average?

a. 83,600 c. 82,500b. 82,700 d. 81,600

51. What is cost per equivalent unit for materials using FIFO?a. P 1.63 c. P 1.50b. P 1.37 d. P 1.56

52. What is cost per equivalent unit for conversion cost using FIFO?a. P 4.00 c. P 4.34b. P 4.19 d. P 4.38

53. What is cost per equivalent unit for materials using weighted average?a. P 1.49 c. P 1.56b. P 1.63 d. P 1.44

54. What is cost per equivalent unit for conversion costs using weighted average?a. P 4.19 c. P 4.55b. P 4.41 d. P 4.35

55. What is the cost assigned to ending inventory using FIFO?a. P 75,920 c. P 56,420b. P 58,994 d. P 53,144

56. What is the cost assigned to abnormal spoilage using FIFO?a. P 1,350 c. P 5,256b. 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?a. P 6,193 allocated between WIP and Transferred Outb. P 6,424 assigned to units Transferred Outc. P 6,193 assigned to loss accountd. P 6,424 assigned to units Transferred Out

58.What is the total cost assigned to goods transferred out using weighted average?a. P 435,080 c. P 428,656b. 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 unitsStarted 75,000 unitsEnding WIP (60% complete) 16,000 unitsAbnormal Spoilage 2,500 unitsNormal Spoilage (continuous) 5,000 unitsTransferred Out 66,000 units

All materials are added at the start of production.

Cost of Beginning Work in ProcessMaterials P 25,100Conversion 50,000

Current CostMaterials P120,000Conversion 300,000

59.Using weighted average, what are equivalent units for materials?

PROCESS COSTING 7


a. 82,000 c. 84,500b. 89,500 d. 70,000

60. Using weighted average, what are equivalent units for conversion costs?a. 80,600 c. 83,100b. 78,100 d. 75,600

61. What is the cost per equivalent unit for materials using weighted average?a. P 1.72 c. P 1.77b. P 1.62 d. P 2.07

62.What is the cost per equivalent unit for conversion costs using weighted average?a. P 4.62 c. P 4.48b. P 4.21 d. P 4.34

63. What is the cost assigned to normal spoilage using weighted average?a. P31,000 c. P30,850b. 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?a. P 100,800 c. P 103,180b. P 87,430 d. P 71,680

65. Using FIFO, what are equivalent units for materials?a. 75,000 c. 84,500b. 72,500 d. 70,000

66.Using FIFO, what are equivalent units for conversion costs?a. 72,225 c. 69,725b. 67,225 d. 78,100

67. Using FIFO, what is the cost per equivalent unit for materials?a. P 1.42 c. P 1.71b. P 1.66 d. P 1.60

68. Using FIFO, what is the cost per equivalent unit for conversion costs?a. P 4.46 c. P 4.30b. 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?a. P 414,194 c. P 445,444b. P 339,094 d. P 396,975

70.T Company has the following information for July:Units started 100,000 unitsBeginning WIP (35% complete) 20,000 unitsNormal Spoilage (discrete) 3,500 unitsAbnormal Spoilage 5,000 unitsEnding WIP (70% complete) 14,500 unitsTransferred Out 97,000 units

Beginning Work in Process Costs:Materials P 15,000Conversion 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?a. 100,000 c. 95,000

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b. 96,500 d. 120,000

71. What are the equivalent units of production for conversion costs, assuming FIFO?a. 108,900 c. 108,650b. 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?a. P 0 c. P 10,625b. P 9,375 d. P 12,500

73. 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)?

a. P 245,750 c. P 237,000b. P 244,438 d. P 224,938

74. What are equivalent units of production for materials assuming weighted average is used?

a. 107,000 c. 120,000b. 116,500 d. 115,000

75. What are equivalent units of production for conversion costs assuming weighted average is used?a. 113,525 c. 114,775b. 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 Toa. P 7,437.50 Units transferred out and EIb. P 7,437.50 Units transferred outc. P 8,750.00 Units transferred out and EId. 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?a. P 29,725.00b. P 37,162.50c. P 38,475.00d. P 36,250.00

PROCESS COSTING 9

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