PROCESS COSTING PROBLEM 1 (Seatwork Finals) Department II of Charity Manufacturing Company presents the following production...

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PROCESS COSTING PROBLEM 1 (Seatwork Finals) Department II of Charity Manufacturing Company presents the following production data for the month of May, 2011: Opening inventory, 3/8 completed Started in process Transferred Closing inventory, completed completed 4,000 units 13,000 units 9,000 units 4,000 units 4,000 units 1. What are the equivalent units of production (conversion) for the month of May, 2011 under FIFO method? 2. What are the equivalent units of production (conversion) for the month of May, 2011 under average method? PROBLEM 2 (Seatwork Finals) Department A is the first stage of Mann Company's production cycle. The following information is available for conversion costs for the month of April 2011: Work in process, beginning (60% complete) Started in April Completed in April and transferred to Department B Work in process, ending (40% complete) UNITS 20,000 340,000 320,000 40,000 1. The equivalent units for the conversion cost calculation under FIFO method is 2. The equivalent units for the conversion cost calculation under average method is PROBLEM 3 (Seatwork Finals) Bart Co. adds materials at the end of the process in Department M. the following information pertain to Department M's work in process during April: UNITS Work in process, April 1 (60% complete as to conversion cost) Started in April 3,000 25,000 Completed 20,000 Work in process, April 30 (75% complete as to conversion cost) 8,000 3. What are the equivalent units of production (both for materials and conversion) for the month of April using FIFO method? 4. What are the equivalent units of production (both for materials and conversion) for the month of April using weighted average method? PROBLEM 4 (Seatwork Finals) Sussex Corporation's production cycle starts in the Mixing Department. The following information is available for April: Work in process, April 1 (50% complete) Started in April Work in process, April 30 (60% complete) Quiz UNITS 40,000 240,000 25,000 5. Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for the month of April under FIFO method? 6. What are the equivalent units of production for the month of April under average method? Provide solution and answer PROBLEM 5 (Quiz 1 Finals) On September 30, work in process totalled 9, 000 units 60% complete (based on conversion costs added uniformly throughout the department and material added at the start of the process). A total of 100, 000 units were transferred to the next department during October. On October 31, a total of 8, 000 units 40% complete (based on conversion costs) were still in process in Department A. 7. Using the weighted-average cost flow method, what are the equivalent units to be used in the calculation of costs for October? PROBLEM 6 (Quiz 1 Finals) Richardson Company computed the flow of physical units completed for Department M for the month of March 2011 as follows: From work in process on March 1, 2011 From March production Units completed: 15,000 45,000 60,000 Materials are added at the beginning of the process. The 12, 000 units of work in process at March 31, 2011, were 80% complete as to conversion costs. The work in process at March 1, 2011, was 60% complete as to conversion costs. 8. Using the FIFO method, the equivalent units for March conversion costs were: PROBLEM 7 (Quiz 1 Finals) Pure Spring Water Company bottles spring water. The spring water first undergoes filtration in Department 1 and is eventually bottled in Department 2. A quantity schedule for May 2011 follows: Department 1: Units started in process Units transferred to Department 2 80,000 Units in process, end 30,000 Department 2: 110,000 Units received from Department 1 80,000 Units transferred to finished stock 61,400 Units in process, end Units in process at the end in both departments are 72%. 9. In Department 2, what is the equivalent production for conversion costs? PROBLEM 8 (Quiz 1 Finals) 18, 600 The following data for the month of September were taken form the cost records of Department 1 of Pro-Life products which uses process costing system: Opening inventory of work in process: Units -500 (with all materials added and 50% of labor and overhead) Cost - Materials Labor Factory overhead Put into production: Units -5,000 Costs Materials Labor Factory overhead 2,400 1,500 760 25, 100 19, 380 14,900 Completed and transferred - 4,800 units Ending inventory of work in process: Units - 700 (with all materials, and 60% of labor and overhead) 10. The cost per equivalent unit (rounded to nearest centavo) under FIFO: 11. The cost per equivalent unit (rounded to nearest centavo) under weighted average: || JOINT AND BY-PRODUCT COSTING Problem 1 (Quiz 2 Finals, provide solution and answer) Maroon Ltd is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X. The company uses the net realizable value of its joint products to allocate joint production costs. The by-product is valued for inventory purposes at its market value less its disposal cost, and this value is used to reduce the joint production cost of P2,015,000. Information regarding the company's August 2020 operations are presented below: In liters Z Finished Goods inventory, August 1 30,000 100,000 40,000 August Sales 1,340,000 760,000 240,000 August Production 1,600,000 800,000 200,000 In Peso Further Processing cost 1,400,000 1,520,000 Final Sales value per Liter 10 14 Sales value per liter at split off Disposal Cost per liter 2.40 0.40 Required: 1) Calculate the by-product income 2) Calculate the adjusted joint cost for allocation for August 3) Calculate the allocation of joint cost for August for products Y and Z 4) Calculate the unit cost per product and value of closing inventory 5) The company has an opportunity to sell product Z at split off for P10 per liter. Prepare an analysis to show whether Z should be sold at split off point or further processing. 6) Split your joint costs between join products using physical unit method. PROCESS COSTING PROBLEM 1 (Seatwork Finals) Department II of Charity Manufacturing Company presents the following production data for the month of May, 2011: Opening inventory, 3/8 completed Started in process Transferred Closing inventory, completed completed 4,000 units 13,000 units 9,000 units 4,000 units 4,000 units 1. What are the equivalent units of production (conversion) for the month of May, 2011 under FIFO method? 2. What are the equivalent units of production (conversion) for the month of May, 2011 under average method? PROBLEM 2 (Seatwork Finals) Department A is the first stage of Mann Company's production cycle. The following information is available for conversion costs for the month of April 2011: Work in process, beginning (60% complete) Started in April Completed in April and transferred to Department B Work in process, ending (40% complete) UNITS 20,000 340,000 320,000 40,000 1. The equivalent units for the conversion cost calculation under FIFO method is 2. The equivalent units for the conversion cost calculation under average method is PROBLEM 3 (Seatwork Finals) Bart Co. adds materials at the end of the process in Department M. the following information pertain to Department M's work in process during April: UNITS Work in process, April 1 (60% complete as to conversion cost) Started in April 3,000 25,000 Completed 20,000 Work in process, April 30 (75% complete as to conversion cost) 8,000 3. What are the equivalent units of production (both for materials and conversion) for the month of April using FIFO method? 4. What are the equivalent units of production (both for materials and conversion) for the month of April using weighted average method? PROBLEM 4 (Seatwork Finals) Sussex Corporation's production cycle starts in the Mixing Department. The following information is available for April: Work in process, April 1 (50% complete) Started in April Work in process, April 30 (60% complete) Quiz UNITS 40,000 240,000 25,000 5. Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for the month of April under FIFO method? 6. What are the equivalent units of production for the month of April under average method? Provide solution and answer PROBLEM 5 (Quiz 1 Finals) On September 30, work in process totalled 9, 000 units 60% complete (based on conversion costs added uniformly throughout the department and material added at the start of the process). A total of 100, 000 units were transferred to the next department during October. On October 31, a total of 8, 000 units 40% complete (based on conversion costs) were still in process in Department A. 7. Using the weighted-average cost flow method, what are the equivalent units to be used in the calculation of costs for October? PROBLEM 6 (Quiz 1 Finals) Richardson Company computed the flow of physical units completed for Department M for the month of March 2011 as follows: From work in process on March 1, 2011 From March production Units completed: 15,000 45,000 60,000 Materials are added at the beginning of the process. The 12, 000 units of work in process at March 31, 2011, were 80% complete as to conversion costs. The work in process at March 1, 2011, was 60% complete as to conversion costs. 8. Using the FIFO method, the equivalent units for March conversion costs were: PROBLEM 7 (Quiz 1 Finals) Pure Spring Water Company bottles spring water. The spring water first undergoes filtration in Department 1 and is eventually bottled in Department 2. A quantity schedule for May 2011 follows: Department 1: Units started in process Units transferred to Department 2 80,000 Units in process, end 30,000 Department 2: 110,000 Units received from Department 1 80,000 Units transferred to finished stock 61,400 Units in process, end Units in process at the end in both departments are 72%. 9. In Department 2, what is the equivalent production for conversion costs? PROBLEM 8 (Quiz 1 Finals) 18, 600 The following data for the month of September were taken form the cost records of Department 1 of Pro-Life products which uses process costing system: Opening inventory of work in process: Units -500 (with all materials added and 50% of labor and overhead) Cost - Materials Labor Factory overhead Put into production: Units -5,000 Costs Materials Labor Factory overhead 2,400 1,500 760 25, 100 19, 380 14,900 Completed and transferred - 4,800 units Ending inventory of work in process: Units - 700 (with all materials, and 60% of labor and overhead) 10. The cost per equivalent unit (rounded to nearest centavo) under FIFO: 11. The cost per equivalent unit (rounded to nearest centavo) under weighted average: || JOINT AND BY-PRODUCT COSTING Problem 1 (Quiz 2 Finals, provide solution and answer) Maroon Ltd is a company that produces chemicals for the cleaning industry. One of its processes manufactures join products Y and Z, and by-product X. The company uses the net realizable value of its joint products to allocate joint production costs. The by-product is valued for inventory purposes at its market value less its disposal cost, and this value is used to reduce the joint production cost of P2,015,000. Information regarding the company's August 2020 operations are presented below: In liters Z Finished Goods inventory, August 1 30,000 100,000 40,000 August Sales 1,340,000 760,000 240,000 August Production 1,600,000 800,000 200,000 In Peso Further Processing cost 1,400,000 1,520,000 Final Sales value per Liter 10 14 Sales value per liter at split off Disposal Cost per liter 2.40 0.40 Required: 1) Calculate the by-product income 2) Calculate the adjusted joint cost for allocation for August 3) Calculate the allocation of joint cost for August for products Y and Z 4) Calculate the unit cost per product and value of closing inventory 5) The company has an opportunity to sell product Z at split off for P10 per liter. Prepare an analysis to show whether Z should be sold at split off point or further processing. 6) Split your joint costs between join products using physical unit method.