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4. Considering the following data for April 2018 from Pink Manufacturing Company, which makes silk pennants and uses FIFO Process Costing. All direct materials are added at the beginning of the costing process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed at a zero net disposal value. Physical Direct Units Direct Conversion Materials Costs Work in process, April 1 Started in April Completed and transferred out 1,000 P14,230 P11,100 ? 9,000 100 Normal lost units Abnormal lost units 50 Work in process, April 30 Costs added during April 2,000 P121,180 P277,500 Stages of Completion of Work in Process Materials Conversion Costs Beginning 100% 50% Ending 100% 30% Requirement: 1.What are the equivalent units for materials and conversion cost? 2. What is cost per equivalent units for materials and conversion costs (rounded)? 2.What is the cost of the units completed and transferred out to the next department? 3. What is the cost of the units in ending work in process? 4. What is the cost assigned to abnormal lost units?

4. Considering the following data for April 2018 from Pink Manufacturing Company, which makes silk pennants and uses FIFO Process Costing. All direct materials are added at the beginning of the costing process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed at a zero net disposal value. Physical Direct Units Direct Conversion Materials Costs Work in process, April 1 Started in April Completed and transferred out 1,000 P14,230 P11,100 ? 9,000 100 Normal lost units Abnormal lost units 50 Work in process, April 30 Costs added during April 2,000 P121,180 P277,500 Stages of Completion of Work in Process Materials Conversion Costs Beginning 100% 50% Ending 100% 30% Requirement: 1.What are the equivalent units for materials and conversion cost? 2. What is cost per equivalent units for materials and conversion costs (rounded)? 2.What is the cost of the units completed and transferred out to the next department? 3. What is the cost of the units in ending work in process? 4. What is the cost assigned to abnormal lost units?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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4. Considering the following data for April 2018 from Pink Manufacturing Company, which makes silk pennants and uses FIFO Process Costing. All direct materials are added at the beginning of the costing process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed at a zero net disposal value. Physical Direct Units Direct Materials Conversion Costs Work in process, April 1 Started in April Completed and transferred out 1,000 P14,230 P11,100 ? 9,000 Normal lost units 100 Abnormal lost units 50 Work in process, April 30 Costs added during April 2,000 P121,180 P277,500 Stages of Completion of Work in Process Materials Conversion Costs Beginning 100% 50% Ending 100% 30% Requirement: 1.What are the equivalent units for materials and conversion cost? 2. What is cost per equivalent units for materials and conversion costs (rounded)? 2.What is the cost of the units completed and transferred out to the next department? 3. What is the cost of the units in ending work in process? 4. What is the cost assigned to abnormal lost units?
Transcribed Image Text:4. Considering the following data for April 2018 from Pink Manufacturing Company, which makes silk pennants and uses FIFO Process Costing. All direct materials are added at the beginning of the costing process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed at a zero net disposal value. Physical Direct Units Direct Materials Conversion Costs Work in process, April 1 Started in April Completed and transferred out 1,000 P14,230 P11,100 ? 9,000 Normal lost units 100 Abnormal lost units 50 Work in process, April 30 Costs added during April 2,000 P121,180 P277,500 Stages of Completion of Work in Process Materials Conversion Costs Beginning 100% 50% Ending 100% 30% Requirement: 1.What are the equivalent units for materials and conversion cost? 2. What is cost per equivalent units for materials and conversion costs (rounded)? 2.What is the cost of the units completed and transferred out to the next department? 3. What is the cost of the units in ending work in process? 4. What is the cost assigned to abnormal lost units?
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