For the month just ended, the following data were generated by Alonzo Corporation. Physical units Units in
Question:
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, can (? complete)
Labor and overhead (80% complete)
Costs for the month
Work in process, beg.
Materials, chemical P 456,000
Labor (P100 per hour) 62,500
Overhead 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 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 hours at the rate of P 30 per hour.
a. Using the weighted average method, the cost per equivalent unit for direct materials, cans amounted to
b. Using the weighted average method, the cost of overhead in the work in process, end amounted
c. Using the weighted average method, the cost per equivalent unit for direct materials, chemicals amounted to
Tan-tan Company produces a small standard component in a process operation. There is a quality control check at the end of the processing.
Items which fail this check are sold off as scrap for P1.80 per unit. The expected rate of rejection is 10%. Normal loss is not given a cost except
that whatever scrap value it has is credited to the process account. The cost/value of the abnormal loss or gain, net of scrap, is written off to the
profit and loss account.
Data for July are as follows:
Materials input 1,000 units P5,100
Conversion cost P3,000
Output to finished goods 800 units
a. What was the full cost of the finished output that passed the quality control check?
Nat Company
has a Mixing Department and a Refining Department. It's process costing system in the Mixing Department has two direct
materials cost categories (material AA and material BB) and one conversion cost pool. The company uses first- in - first- out flow method. The
following data pertain to the Mixing Department for October, 2014.
Units
Work-in-process, October 1: 50% completed 30,000
Work-in-process, October 31, 70% completed 50,000
Unit started 120,000
Completed and transferred 100,000
Costs
Work-in-process, October 1 436,000
Material AA 1,440,000
Material BB 1,500,000
Conversion costs 600,000
Material AA is introduced at the start of operations in the Mixing Department, and Material BB is added when the product is three-fourths
completed in the Mixing Department. Conversion costs are added uniformly during the process.
a. The respective equivalent units for Material AA and Material BB in the Mixing Department for October 2014, are:
b. The cost of goods completed and transferred out to the Refining Department was:
Hannibal Co. processes its product in three consecutive departments, A,B and C. The following data are given for the third department's
production for June,2014.
Quantity data:
In process, June 1 (4/5 complete) 5,000 units
Transferred in 22,000 units
In process, June 30 (3/4 conplete) 8,000 units
Cost data:
In process, June 1 30,610
Transferred in 110,000
Cost added in June
Materials 15,750
Labor 8,400
Overhead 6,300
a. What is the unit cost of the units completed and transferred?
Summer Paradise Company
makes a single product in two departments. The production data for Department B for 2014 follows:
Units
In process, August 1 (40% completed) 4,000 units
Received from Department 1 30,000 units
Completed and transferred 25,000 units
In process, August 31 (60% completed) 6,000 units
Costs
In process, May 1 Added during May
Received from Dept. 1 P14,400 P97,200
Materials 3,800 67,500
Conversion costs 1,940 81,000
Materials are added at the start of the process and losses normally occur during the early stages of the operation.
a. Cost of goods manufactured using FIFO method
b. Cost of the ending work in process inventory using average costing
Expert Answer:
Question Q2 The objective of the question is to compute cost of finished goods Stepbystep explanation Normal Loss is part of the process and hence the cost is absorbed by the output of the process Abn... View the full answer
