No. 125 Brgy.

Saan Sebastian
Lipa City, Batang
gas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gm
mail.com

PRO
OCESS C
COSTING
G

Prooblem 1: Jeremia ah adds m material aat the sta

art of pro
oduction. The follo
owing infformation
n
is a
available for Noveember:
Begg WIP (45 5% comp plete as tto converrsion) 10,0000 unitts
Started this period 120,0000
Endding WIP P (80% co
omplete a as to con
nversion) 8,2000
Begg WIP Co ost
Maaterials P24,5000
Coonversion n 68,9055
Currrent Cosst
Maaterials 75,6000
Coonversion n 130,0533

Thee Cost of units completed using We

eighted A
Average
a. P237,510
b. P266,742
c. P248,400
d. P282,576

Thee Cost of units completed using FIF

FO method
a. P287,004
b. P298,029
c. P191,289
d. P204,624

oblem 2:: ICARE Corp. m

Pro manufacture glasss window
w. The ffollowing data pe
ertains to
o
Asssembly D Departme ent. Thee compa any usess weighte
ed avera age metthod. Th
he directt
matterials iss added at the b beginning
g of the production proccess, and
d the co
onversionn
actiivity occu
urs uniforrmly throu
ughout th
he processs.

Work in Processs, Jan. 1  ??  unitss

Unitss started  140,000
0  unitss
Total units to aaccount forr  160,000
0  unitss
Unitss completeed and tran nsferred out  ?? 
Work in processs, Jan. 31  10,000
0  unitss
Total Equivalen nt unit: Dirrect materials  160,000
0  unitss
Total Equivalen nt units: Coonversion ??  unitss
Cost of Work in n process, Jan. 1 
   Dirrect Materials  224,000
0 
   Con nversion  ?? 
Cost incurred d during Janu uary 
  Direect Materiaals  ?? 
  Connversion  1,800,000
0 
Work in Processs, Jan. 1: TTotal Costss  ?? 
Total Cost incu urred durinng January 3,000,000
0 
Total cost to acccount for  3,284,450
0 
Cost per equivaalent unit: Direct maaterials  8.90
0 
Cost per equivaalent unit: Conversio on  ?? 
Cost of goods ccompleted d and transsferred outt during January  ?? 
Cost remainingg in endingg work in process: Dirrect materrials  ?? 
Cost remainingg in endingg work in process: Co onversion  82,950
0 
Total cost of Jaan. 31 workk in processs  171,950
0 

1 | Page
RFERRER/RLACO/ATANG/PDEJESUS
 No. 125 Brgy. Saan Sebastian
Lipa City, Batang
gas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gm
mail.com

Add
ditional In
nformatio
on:
 The JJanuary 3
31 work iin processs was 15
5% comp
plete as tto converrsion.
 The JJanuary 3
31 work iin processs was 70
0% comp
plete as tto converrsion.

quired: C
Req Compute
e the misssing amo
ount

Prooblem 3:: Promise Land, which u uses a p process-ccosting ssystem w

weighted average e
metthod, add
ds materrial at the
e beginnin
ng of pro
oduction aand incurs conve
ersion cosst evenlyy
thro
oughout manufaccturing. T The follo
owing se elected informatiion was taken ffrom the e
commpany's a
accountin
ng record ds:

Total equivaalent units of mateerials: 5,0

000
Total equivaalent units of convversion: 44,400
Units started
d and com mpleted during th he period: 3,500

On the basiss of this iinformation, the e

ending wo
ork-in-pro
ocess invventory's stage off
mpletion iis:
com
a. 40%.
b. 60%.
c. 70%.
d. 80%.

oblem 4: The follo

Pro owing infformation
n is availa
able for E
Exodus CCompanyy for Marcch of the
e
currrent yearr. All matterials are
e added at the sta
art of pro
oduction.

Beginnning Woork in Pro

ocess: (8
80% complete) 8,000 units
Started 35,000 units
mal spoila
Norm age (conttinuous) 6,000 units
Abnoormal spooilage 2,500 units
Endinng Work in Proceess: (55%
% complette) 15,000 units
Transsferred o
out 19,500 units

Begin
nning Wo ork in Pro
ocess Co
osts:
M
Material P 14,000
C
Conversion 45,000
Curre
ent Costss:
M
Material 50,000
C
Conversion 1
175,000
Total CCosts P2
284,000

Commpute thhe follow

wing:
1. Work in process ending ccost using
g FIFO m
method
ansferred
2. Total Tra d cost usiing Weighted Ave
erage me
ethod

2 | Page
RFERRER/RLACO/ATANG/PDEJESUS
 No. 125 Brgy. Saan Sebastian
Lipa City, Batang
gas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gm
mail.com

Pro
oblem 5: The fo
ollowing information is avvailable for Genesis Corrporation
n for the
e
currrent mon
nth:

Started this mon

nth 80,000 unitss
Beginning WIP
0% complete)
(40 500 unitss
7,5
Normal spoilagee (discrette) 1,100 unitss
Abnormmal spoila
age 900 unitss
Ending WIP
0% complete)
(70 13,000 unitss
Transfe
erred out 500 unitss
72,5

Beginning Workk in Proce

ess Costss:
Maaterial P10,400
Con nversion 13,800
Currentt Costs:
Maaterial P120,000
Con nversion 350,000

All materialss are added at th he start of produ

uction and converrsion is a
applied u
uniformlyy
oughout the process. Th
thro he inspeection pooint is a
at the e
end of the proce ess and d
connversion iis applied
d uniform
mly throug
ghout the
e processs.

Wha
at is the total cost a
assigned to goods transferre
ed out usiing weighted avera
age?
a. P435,080
b. P429,968
c. P428,656
d. P423,400

What is the cost assigned to work in p

process e
ending in
nventory using FIF
FO?
a. P75,920
b. P59,016
c. P56,420
d. P53,144

oblem 6: Luke Co
Pro orp. has tthe follow
wing inforrmation fo
or the mo
onth of O
October:

Units Dept. 1 Dept. 2

Workk in Process beg. (8
80% (80%
% complete
e as to
complete as to conversioon) 5,00
00 conve
ersion) 6,00
00
Starte
ed in Proccess 80,00
00 ?
Workk in Process end (70% (70%
% complete
e as to
complete as to conversioon) 4,00
00 conve
ersion) ?
Finish
hed and TTransferre
ed 70,00
00 65,00
00
Normmal lost un
nits 6,00
00 2,00
00
Abnoormal lost units ? 1,20
00

Last Period co
ost
Maaterials P20,00
00 P25,00
00
Coonversion 40,00
00 35,00
00
Traansferred-in - 25,00
00

Curre
ent Period
d Cost
Maaterials 150,00
00 150,00
00
Coonversion 252,16
60 400,00
00
Tra
ansferred-in - ?

3 | Page
RFERRER/RLACO/ATANG/PDEJESUS
 No. 125 Brgy. Saan Sebastian
Lipa City, Batang
gas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gm
mail.com

Dep
partmentt 1: Materrials are added att 40% completion and con nversion a
are applied
eve
enly to the
e process. The innspection
n point is at the en
nd of the process..

Deppartmentt 2: 30% oof the maaterials a

are added he processs and the
d at the sstart of th
bala
ance is a
added wh hen the pprocess iss ¾ comppleted; coonversion n are app
plied eve
enly to
the process. The insspection ppoint is a
at 60% co
ompletion n.

Commpute thee followin

ng using FIFO an
nd Weighted Average in De
ept. 1 an
nd Dept. 2
a. Transferrred out ccost
b. Work in process ending in nventory cost

4 | Page
RFERRER/RLACO/ATANG/PDEJESUS