FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:CUst A
Normal spoilage was computed to be 2,000 units. Spoilage is discovered at the end of
the process and is debited to Finished Goods Inventory, it is not spread over good
units produced. Costs per equivalent unit were: Prior department P 3.00; Materials P
2.00; Conversion costs P4.00.
10. The journal entry to remove all the costs of spoiling the 2,000 units from work in
process is as follows:
Debit
Credit
a. Finished Goods Inventory
for P6,000
Work in Process Inventory
for 6,000
b. WP Inventory for P6,000
C. FG Inventory for P12,000
d. FG Inventory for P18,000
FG Inventory for P6,000
WP Inventory for P12,000
WP Inventory for P18,000
Stockton Company adds materials at the beginning of the process in Department M.
Data concerning materials used in March production are as follows:
Started during March
Completed and transferred
Normal spoilage
Work in process at March 31
11. The equivalent units for materials are:
a. 50,000
b. 34,000
50,000 units
36,000 units
4,000.units
10,000 units
C. 40,000
d. 46,000
Materials are added at the start of the process in Cesar company's blending
department, the first stage of the production cycle. The units started during the month
were 210,000. Completed and transferred, 110,000 and in process, end (50% comp)
were 70,000:Under Cesar's cost accounting system, the costs incurred on the lost units
are absorbed by the completed units only.
12. What are the equivalent units for materials?
a. 120,000
b. 145,000
C: 180,000
d. 210,000
Transcribed Image Text:Chapter 10 Process Costing
Ellery Company instituted a new process in October, 2016. During October 10,000
units were started in Department A. Of the units started, 1,000 were lost by shrinkage
in the process, 7,000 were transferred to Dept. B, and 2,000 remained in work in
process at October 31. The work in process at Oct. 31 was 100% complete as to
materials and 50% complete as to conversion cost. Materials costs of P27,000 and
conversion costs of P 40,000 were charged to Department A in October.
13. What were the total costs transferred to Dept. B?
a. P 53,900
b. P 56,000
c. P 61,600
d. P 62,000
14. What were the costs of the units in process, October 31?
a. P-10,400
b. P 11,000
c. P 15,000
d. P 18,100
A sporting goods manufacturer buys wood as a direct material for baséball bats. The
Forming department processes the baseball bats, and transfers the bats to the Finishing
department where additional work is applied. The Forming department began
manufacturing 10,000 bats during the month of May. There was no beginning
inventory. Costs for The Forming department for the month of May follows:
Direct materials
Conversion costs
P 33,000
17,000
A total of 8,000 bats were completed and transferred to the Finishing department, the
remaining 2,000 bats were still in process at the end of the month. All of the Forming
department's direct materials were placed in process, but on average, only 25% of the
conversion.cost was applied to the ending work in process inventory.
15. The cost allocated to units transferred to the Finishing department
a, P 50,000
b. Р 40,000
с. Р 53.000
d. P 42,400
16. The cost allocated to the units in process at the end of the month
а. Р 2,200
6. P 4,000
c. P 4,800
d. P.7,600
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