Luisita Corp. produces product A and product B. It has two departments that process all products. During February, the beginning WIP in department 1 was half completed as to conversion, and complete as to direct materials. The beginning inventory included P40,000 for materials and P60,000 for conversion cost. Ending WIP inventory in department 1 was 40% complete. Direct materials are added at the end of the process. Beginning WIP in department 2 was 20% incomplete as to conversion. Direct materials for department 2 are added near the end of the process. Beginning inventories included P24,000 for transferred-in cost and P28,000 for conversion costs. Ending inventory was 70% incomplete. Additional information about the two departments are as follows: Department 1 Department 2 Transferred-out cost P128,000 68,500 Conversion Cost P28,000 P48,000 68,500 Materials Added 34,000 Beg, WIP in units 20,000 24,000 Units Started this period 60,000 68,000 Units transferred this period 64,000 20,000 1. Compute for the unit cost of transferred unit for Department 2 using average method. 2. Compute for the cost of work in process, ending using average method.

Luisita Corp. produces product A and product B. It has two departments that process all products. During February, the beginning WIP in department 1 was half completed as to conversion, and complete as to direct materials. The beginning inventory included P40,000 for materials and P60,000 for conversion cost. Ending WIP inventory in department 1 was 40% complete. Direct materials are added at the end of the process. Beginning WIP in department 2 was 20% incomplete as to conversion. Direct materials for department 2 are added near the end of the process. Beginning inventories included P24,000 for transferred-in cost and P28,000 for conversion costs. Ending inventory was 70% incomplete. Additional information about the two departments are as follows: Department 1 Department 2 Transferred-out cost P128,000 68,500 Conversion Cost P28,000 P48,000 68,500 Materials Added 34,000 Beg, WIP in units 20,000 24,000 Units Started this period 60,000 68,000 Units transferred this period 64,000 20,000 1. Compute for the unit cost of transferred unit for Department 2 using average method. 2. Compute for the cost of work in process, ending using average method.

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 2BE: Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots From...

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Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had 120 of raw materials and 180 of conversion costs incurred. Materials added during December were 540, and conversion costs of 1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method. The equivalent units of production used to compute conversion costs for December were: a. 110 units. b. 104 units. c. 100 units. d. 92 units.
The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000.
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