Exercise 3, 4, & 7

Topic: Process Costing- FIFOIncrease and loss in units

Exercise 4: Increase in Quantity due to Addition of Materials at the Start of the Process - Cost of Production Report The product of Marilao Mig. Co. is processed in two consecutive departments, X and Y. The addition of materials at the start of the process in Dept. Y increases quantity by 20%. The following data are given on the September, 19G production: Quantity data: In process, Sept. 1.. 6,000 units, 2/3 done Received from Dept. X. 40,000 units In process, Sept. 30 5,000 units, 2/5 done Cost data; In process, Sept. 1.. P 22,000 Received from Dept. X 72,000 Factory costs, September: Materials.. 48,000 Labor ....... 23,500 Factory overhead 9,400 Required: Cost of production report supported by the schedule of equivalent units of production.Exercise 3: Cost of Production Report-Increase in Quantity Due to Addition of Materials Evenly Throughout the Process In Department II of Angeles Mig. Co., there is an expected increase in the number of units in process due to addition of materials evenly throughout the process. The production data for October, 19G are as follows: Quantity data: In process, October 1 . 2,000 units, 3/4 done Received from Dept. I 40,000 units In process, October 31 3,000 units, 1/5 done Increase in quantity ...... 10,000 units Cost data: In process, October 1 P 5,500 Received from Dept. I. 100,000 Factory costs, October: Materials. 48,100 Labor . 28,860 Factory overhead rate 50% of labor cost Required: a. Adjusted unit cost from preceding department b. Cost of production reportcise 7: Cost of Production Report with Abnormal Loses Uneven Apples tion of Cost. Diamante Mig. Co. has its product processed in two consecutive departments, An. B. The following data are given on the January, 19D production of Dept. D: Quantity data: In process, Jan. 1 ........... 2,000 units, 1/4 don Received from Dept. A .................mmm.Hi 20,000 units In process, Jan. 31 .............mmmmmm. 8,200 units, 1/4 done Abnormal 1085 ..........mummy 1,000 units, 1/5 done Cost data: In process, Jan. 1 ............... P 6,322 ............................. Received from Dept. A.....................".ulli 20,000 Factory costs: Materials. ...................com 52,000 Labor . 10,980 Factory overhead ........... 7,320 : Materials are added at the start while conversion costs are applied evenly through out the process. Required: Cost of production report