Exercise 9

Subject- Cost accounting

Topic- Process costingProcess costing: Increase and Loss in units

Process Costing: FIFO - Increase and Loes in Units . 263 of Cost . exercise 8: . Cost of Production Report with Normal Loss-Uneven Application Liwanag Mig. Co. operates two consecutive departments for the processing of.its aroduct. Factory costs are applied evenly throughout the process while materials are added as follows: and ja saol out Dept. I :. Materials are added at the start. Dept. II : Materials are added when goods are three-fourths done. Quantity data: Department I Department 11 In process, July 1 10,000 units 8,000 units Stage of completion Placed in process 3/4 1/8 Transferred out 80,000 units 75,000 units 68,000 units In process, July 31 11,000 units Stage of completion 1/5 1/2 Normal loss: At the end 6,000 units During process Cost data: Work in process, July 1 P. 8,915 P10,500 Factory costs, July: Materials 44,800 68,000 Labor 22,590 36,250 Factory overhead 11,295 21,750 Required: Cost of production report supported by the schedule of production quantity. The loss in Dept. II is identified with the units received during the period