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at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for September of the current year are as follows Work in process, beg. Started 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% Completed & transferred Work in process, end Costs: 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials Conversion costs P70,000 40,000 Added during the period: | Materials P160,000 Conversion costs 122,480

at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for September of the current year are as follows Work in process, beg. Started 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% Completed & transferred Work in process, end Costs: 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials Conversion costs P70,000 40,000 Added during the period: | Materials P160,000 Conversion costs 122,480

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...
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What is the cost of ending inventory?

Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are included at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for September of the current year are as follows Work in process, beg. 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% Started Completed & transferred Work in process, end Costs: 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 Conversion costs 40,000 Added during the period: Materials Conversion costs P160,000 122,480
Transcribed Image Text:Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are included at the inception of the process. Conversion costs are incurred evenly throughout the process. The machine broke down at 60% stage of completion due to inefficient operator that caused some of the units in process to be spoiled with no market value. Daily Custom Company uses FIFO in accumulating costs. Data provided for September of the current year are as follows Work in process, beg. 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% Started Completed & transferred Work in process, end Costs: 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 Conversion costs 40,000 Added during the period: Materials Conversion costs P160,000 122,480
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