Chapter 11 Average and FIFO Costing Cost for the month P456,000 62,500 Work in process, beg. Materials, chemicals Labor (P100 per hour) Overhead The month's cost added Materials, chemicals 18,750 2,284,000 Materials, cans 70,000 Labor 350,000 Overhead 105,000 The company manufactures high quality paints. Production begins with the blending of he various chemicals, which are added at the beginning of the process and ends with the anning of the paint. Canning occurs when the mixture reaches the 90% stage of completion. The gallon cans are then transferred to the Shipping Department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hour at the rates of P30 per hour. 6. Using the weighted average method, the cost per equivalent unit for direct materials, cans amounted to 353
Chapter 11 Average and FIFO Costing Cost for the month P456,000 62,500 Work in process, beg. Materials, chemicals Labor (P100 per hour) Overhead The month's cost added Materials, chemicals 18,750 2,284,000 Materials, cans 70,000 Labor 350,000 Overhead 105,000 The company manufactures high quality paints. Production begins with the blending of he various chemicals, which are added at the beginning of the process and ends with the anning of the paint. Canning occurs when the mixture reaches the 90% stage of completion. The gallon cans are then transferred to the Shipping Department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hour at the rates of P30 per hour. 6. Using the weighted average method, the cost per equivalent unit for direct materials, cans amounted to 353
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Chapter 11 Average and FIFO Costing
Cost for the month
Work in process, beg.
P456,000
62,500
18,750
The month's cost added
Materials, chemicals
2,284,000
Materials, cans
70,000
Labor
350,000
Overhead
105,000
The company manufactures high quality paints. Production begins with the blending of
the various chemicals, which are added at the beginning of the process and ends with the
canning of the paint. Canning occurs when the mixture reaches the 90% stage of
completion. The gallon cans are then transferred to the Shipping Department for crating
and shipment. Direct labor and overhead are added continuously throughout the process.
Overhead is allocated on the basis of direct labor hour at the rates of P30 per hour.
16. Using the weighted average method, the cost per equivalent unit for direct materials,
cans amounted to
Materials, chemicals
Labor (P100 per hour)
Overhead
353
Transcribed Image Text:For the month just ended, the following data were generated by Alonzo Corporation.
Physical units
Units in process, beg.
4,000 gallons
Materials, chemicals (? complete)
Materials, cans (0% complete)
Labor and Overhead (25% converted)
Started in process
21,000 gallons
Transferred to shipping
20,000 gallons
In process, end
Materials, chemicals (100% complete)
Materials, cans (? complete)
Labor and overhead (80% complete)
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