JUNNIE Inc. is a company manufacturing a product known as "VEINS" which undergoes a uniform process prior to its completion. For the year ended December 31, 2020, the following data are provided by the company: a. The work-in-process inventory on January 1, 2020 is 10,000 units which are 80% incomplete as regards to conversion cost while the work-in-process inventory on December 31, 2020 is 60% complete as regards to conversion cost. b. The total units started during the year amounted to 90,000 units while the total units manufactured during the year amounted to 70,000 units. c. There is no spoilage during the period. d. It is the company's policy to apply direct labor and factory overhead evenly throughout the period while 2/5 of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. e. The cost of January 1, 2020 work-in-process inventory consists of P100,000-direct material, P200,000-direct labor and P300,000-factory overhead. f. The total manufacturing cost for the year consisted of P2M-direct material, P5M-direct labor and P3M-factory head. 4. Under the Weighted Average process costing system, what is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively? 5. Under the FIFO process costing system, what is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively?
JUNNIE Inc. is a company manufacturing a product known as "VEINS" which undergoes a uniform process prior to its completion. For the year ended December 31, 2020, the following data are provided by the company: a. The work-in-process inventory on January 1, 2020 is 10,000 units which are 80% incomplete as regards to conversion cost while the work-in-process inventory on December 31, 2020 is 60% complete as regards to conversion cost. b. The total units started during the year amounted to 90,000 units while the total units manufactured during the year amounted to 70,000 units. c. There is no spoilage during the period. d. It is the company's policy to apply direct labor and factory overhead evenly throughout the period while 2/5 of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. e. The cost of January 1, 2020 work-in-process inventory consists of P100,000-direct material, P200,000-direct labor and P300,000-factory overhead. f. The total manufacturing cost for the year consisted of P2M-direct material, P5M-direct labor and P3M-factory head. 4. Under the Weighted Average process costing system, what is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively? 5. Under the FIFO process costing system, what is the cost per equivalent unit of production of Direct Material and Conversion Cost, respectively?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:JUNNIE Inc. is a company manufacturing a product known as "VEINS" which undergoes a
uniform process prior to its completion. For the year ended December 31, 2020, the following data
are provided by the company:
a. The work-in-process inventory on January 1, 2020 is 10,000 units which are 80%
incomplete as regards to conversion cost while the work-in-process inventory on December
31, 2020 is 60% complete as regards to conversion cost.
b. The total units started during the year amounted to 90,000 units while the total units
manufactured during the year amounted to 70,000 units.
c. There is no spoilage during the period.
d. It is the company's policy to apply direct labor and factory overhead evenly throughout the
period while 2/5 of direct materials are added at the start of the process while the remaining
direct materials are added at the end of the process.
e.
The cost of January 1, 2020 work-in-process inventory consists of P100,000-direct
material, P200,000-direct labor and P300,000-factory overhead.
f.
The total manufacturing cost for the year consisted of P2M-direct material, P5M-direct
labor and P3M-factory head.
4. Under the Weighted Average process costing system, what is the cost per equivalent unit of
production of Direct Material and Conversion Cost, respectively?
5. Under the FIFO process costing system, what is the cost per equivalent unit of production of
Direct Material and Conversion Cost, respectively?
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