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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. Started Completed & transferred Work in process, end Costs: 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials Conversion costs P160,000 122,480

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. Started Completed & transferred Work in process, end Costs: 30,000 units 80,000 units 86,000 units Mat-100%; CC-89.5% 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials Conversion costs P160,000 122,480

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
Chapter6: Process Costing
Section: Chapter Questions
Problem 17E: K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the...
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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. Started 30,000 units Mat-100%; CC-89.5% 80,000 units Completed & transferred Work in process, end Costs: 86,000 units 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials P160,000 Conversion costs 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. Started 30,000 units Mat-100%; CC-89.5% 80,000 units Completed & transferred Work in process, end Costs: 86,000 units 20,000 units Mat-100%; CC-75% Work in Process, beg. Materials P70,000 40,000 Conversion costs Added during the period: Materials P160,000 Conversion costs 122,480
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