1
CHAPTER 11 Answers to Multiple Choice – Theoretical 1. 2. 3. 4.
b d d b
5. 6. 7. 8.
C C D D
9. 10. 11. 12.
c A A B
Solutions to Multiple Choice – Computational 1.
2.
(c) Materials: Units transferred out (100%) Units in process, April 30 (100%) EUP
255,000 25,000 280,000
Conversion Costs: Units transferred out (100%) Units in process, April: (25,000 x 60%) EUP
255,000 15,000 270,000
(b) Equivalent Units of Production: Materials: Units completed and transferred out (100%) Units in process, end (100%) EUP Unit cost – Materials: Cost last month (BWIP) Cost this month (current cost) Total Divided by EUP Unit cost
3.
85,000 14,000 99,000 P12,800 69,700 P82,500 ÷ 99,000 P 0.833
(b) Equivalent Units of Production – Materials Units completed and transferred out (100%) Units in process, July 31 (100%) EUP Unit cost – Materials: Cost last month (BWIP) Cost this month Total Divided by EUP Unit cost Work in process, July 31: (12,000 x P0.51)
44,000 12,000 56,000 P 3,000 25,560 P28,560 ÷ 56,000 P 0.51 P 6,120
2 4.
(b) Transferred in costs (4,000 x P50 Conversion costs: (4,000 x 40%) x P30 Cost of work in process, March 31
5.
P200,000 48,000 P248,000
(a) Units completed (100%) Units in process, end: (8,000 x 75%) EUP – conversion costs
6.
20,000 6,000 26,000
(a) Equivalent units of production: Materials: Units completed and transferred out (100%) Units in process, May 31: (100%) EUP
12,000 8,000 20,000
Conversion costs: Units completed and transferred out (100%) Units in process, May 31: (8,000 75%) EUP
12,000 6,000 18,000
Unit costs: Transferred in cost: Work in process, May1 (6,000 units) Current cost (14,000 units) Total Divided by Unit cost Cost added: Materials: BWIP Current cost Total EUP Conversion costs: BWIP Current cost Total EUP Total unit costs
P12,000 29,000 P41,000 ÷20,000 P 2.05 P2,500 5,500 P8,000 ÷20,000 P1,300 5,000 P6,300 ÷18,000
0.40
0.35 P 2.80
Cost of units completed and transferred out: (12,000 x P2.80) P33,600
3 7.
8.
(d) Equivalent production for labor: Units transferred out to next department Units in process, end; (1,400 x 30%) EUP
7,200 420 7,620
Unit cost for labor: BWIP Current cost Total Divided by EUP Unit cost
P 2,880 91,227 P94,107 ÷ 7,620 P 12.35
Units transferred out: (7,200 x P12.35)
P88,920
(b) Work in process, end: (420 x P12.35)
9.
10.
P 5,187
(a) Equivalent production for materials: Units transferred out (100%) Units in process, end (300 x60%) EUP
6,700 180 6,880
Material unit cost: BWIP Current cost Total material cost Divided by EUP Unit cost
P10,000 63,272 P73,272 ÷ 6,880 P 10.65
Units transferred out: (6,700 x P10.65)
P71,335
Units in process, end: (180 x P10.65)
P 1,917
(a) Direct materials: Units completed (100%) Units in process, May 31: (120x 60%) EUP
460 72 532
Conversion costs: Units completed (100%) Units in process, May 31: (120 x 30%) EUP
460 36 496
4 11.
(a) Unit costs: Materials: Work in process, May 1 Current cost Total material cost EUP (per #10) Unit cost Conversion costs: Work in process, May 1 Current cost Total conversion costs EUP (per #10) Unit cost Total unit cost
12.
P 49,336 322,000 P 371,336 ÷ 532 P 698 P P ÷ P P
9,104 139,200 148,304 496 299 997
Units completed: (460 x P997)
P458,620
Units in process, end: Materials: (72 x P698) Conversion cost: (36 x P299) Total work in process
P 50,256 10,764 P 61,020
(a) Equivalent Units of Production: Direct materials: Units completed Units in process, July 31: (16,000 x100%) EUP
34,000 16,000 50,000
Conversion costs: Units completed Units in process, July 31: (16,000 x 50%) EUP
34,000 8,000 42,000
Unit Costs: Materials: Work in process, July 1 Current costs Total material costs EUP Unit material cost Conversion costs: Work in process, July 1 Current costs Total conversion costs EUP Unit conversion cost
P 60,000 280,000 P340,000 ÷ 50,000 P 6.8 P 70,000 371,000 P441,000 ÷ 42,000 P 10.5
5 13.
14.
(a) Units completed: (34,000 x P17.30)
P588,200
Units in process, end: Materials: (16,000 x P6.8) Conversion costs: (8,000 x P10.5) Total work in process
P108,800 84,000 P192,800
(a) Equivalent Units of Production: Materials: Units completed and transferred out Units in process, June 30 EUP Conversion costs: Units completed and transferred out Units in process, June 30: (30 x 50%) EUP
90 15 105
Unit Costs: Transferred In: Work in process, June 1 Current costs Total EUP: (40 + 80) Unit cost
P 40,000 87,200 P127,200 ÷ 120 P 1,060
Direct materials: Work in process, June 1 Current cost Total EUP Unit cost Conversion costs: Work in process, June 1 Current cost Total EUP Unit cost Total unit costs 15.
90 0 90
P
0 36,000 36,000 ÷ 90 P 400 P 18,000 49,725 P 67,725 ÷ 105 P 645 P 2,105
(d) Units completed: (90 x P2,105)
P189,450
Units in ending WIP: Transferred in cost; (30 x P1,060) Costs added: CC (15 x P645) Total work in process
P 31,800 9,675 P 41,475
6 16.
(a) Equivalent Units of Production: Materials: Units completed Work in process, July 31 (100%) EUP Conversion costs: Units completed Work in process, July 31 (70%) EUP
17.
90 7 97
Unit Costs: Materials: BWIP Current costs Total material cost EUP Unit material cost
P1,800,000 8,000,000 P9,800,000 ÷ 100 P 98,000
Conversion costs: BWIP Current cost Total conversion costs EUP Unit conversion costs Total unit costs
P 479,500 3,740,000 P4,219,500 ÷ 97 P 43,500 P 141.500
(a) Units completed: (90 x P141,500) Units in process, ending: Materials: (10 x P98,000) Conversion costs: (7 x P43,500) Total work in process, ending
18.
90 10 100
P12,735,000 P
980,000 304,500 P 1,284,500
(a) Department X: Units in process, May 1 Units started in process Total units to account for Units completed Units still in process
500 15,000 15,500 (10,500) 5,000
Department Y: Units in process, May 1 Transferred in from Department X Total units to account for Units completed Units still in process
300 8,000 8,300 (7,000) 1,300
7 19.
(a) Equivalent Units of Production: Materials: Transferred out Work in process, June 30 EUP
50,000 20,000 70,000
Conversion Costs: Transferred out Work in process, June 30: (40% x 20,000) EUP
50,000 8,000 58,000
Units Costs: Materials: BWIP Current cost Total EUP Unit material cost Labor cost: BWIP Current cost Total EUP Unit conversion cost Overhead: (P15 x 70%) Total unit costs 20.
P 187,500 1,212,500 P1,400,000 ÷ 70,000 P 20.00 P P ÷ P P P
(a) Cost of goods manufactured: (50,000 x P45.50) Less: Finished goods inventory, June 30 Cost of goods sold
21.
P2,275,000 72,500 P2,202,500
(b) Work in process, June 1 Started in process/transferred in Total units to account for Transferred out Units still process, June 30
22.
53,750 816,250 870,000 58,000 15.00 10.50 45.50
Department 1 34,000 117,000 151,000 (132,500) 18,500
Department 2 33,000 132,500 165,500 ( 131,200) 34,300
(b) Units transferred out Ending work in process EUP
Materials 131,200 34,200 (100%) 165,500
Conversion Costs 131,200 25,725 (75%) 156,925
8 23.
(d) Beginning work in process Materials added Conversion costs added Total cost of units placed in process Less: Ending work in process Cost of units transferred out to finished goods
24.
P23,000 29,000 36,000 88,000 19,000 P69,000
(d) Equivalent Units of Production: Materials: Transferred out Ending work in process: (10,000 – 8,000) 100% EUP
8,000 2,000 10,000
Conversion costs: Transferred out Ending work in process: (2,000 x 70%) EUP
25.
8,000 1,400 9,400
Unit costs: Materials: (P15,000 / 10,000) Conversion costs: (P24,440 / 9,400) Total unit costs
P1.50 2.60 P4.10
Costs of units transferred out to next dept.: (8,000 x P4.10)
P32,800
(d) Materials: (2,000 x P1.50) Conversion costs: (1,400 x P2.60) Total work in process
26.
(a) Equivalent Units of Production Transferred out Ending work in process EUP Unit Costs Beginning work in process Current costs Total costs EUP Unit costs Transferred Out: Materials: (85,000 x P1.31) Conversion costs: (85,000 x P0.75)
27.
P3,000 3,640 P6,640
(d)
(10,000 + 80,000)
Materials CC 85,000 85,000 5,000 (100%) 3,000 (60%) 90,000 88,000 Materials P 30,000 88,000 P118,000 ÷ 90,000 P 1.31
CC P 16,000 50,000 P 66,000 ÷ 88,000 P 0.75 P111,350 63,750
9 28.
(c) Equivalent Units of Production Completed production Ending work in process 1 EUP Unit Costs Beginning work in process Current costs Total costs EUP Unit costs
29.
Materials 184,000 43,200 (90%) 227,200 Materials P 54,560 468,000 P522,560 ÷227,200 P 2.3
31.
P 99,360 57,600 P156,960
(c) Equivalent Units of Production Completed and transferred out Ending work in process EUP
Materials 92,000 21,600 (90%) 113,600
Unit Costs Beginning work in process Current costs Total costs EUP Unit costs
Materials P 54,560 468,000 P522,560 ÷113,600 P 4.60
CC 92,000 9,600 (40%) 101,600 CC P 35,560 574,040 P 609,600 ÷ 101,600 P 6.00
(d) Materials: (21,600 x P4.60) Conversion costs: (9,600) x P6.00) Cost of ending work in process
32.
CC P 35,560 574,040 P609,600 ÷203,200 P 3.00
(d) Ending work in process: Materials: (43,200 x P2.3) Conversion costs: (19,200 x P3.0) Total costs of EWIP
30.
CC 184,000 9,200 (40%) 203,200
P 99,360 57,600 P156,960
(a) Beginning work in process Costs transferred in – this month Total costs transferred in EUP: (8,900 + 30,100) Transferred in unit cost
P 2,047 8,483 P10,530 ÷39,000 P 0.27
10 33.
(a) Equivalent Units of Production: Materials: Units transferred out Ending work in process (100%) EUP Unit material cost: BWIP Current costs Total material cost EUP Unit material cost
34.
35.
29,000 10,000 39,000 P
267 1,683 P 2,950 ÷ 39,000 P 0.05
(b) Equivalent Units of Production: Direct labor: Units transferred out Ending work in process (10,000 x 75%) EUP
29,000 7,500 36,500
Direct labor unit cost: BWIP Current costs Total conversion costs EUP Direct labor unit cost
P1,495.20 7,994.80 P9,490.00 ÷ 36,000 P 0.26
(a) BWIP Current costs, November Total overhead costs EUP (same as labor) Overhead unit cost
P 534.00 2,021.00 P2,555.00 ÷ 36,000 P 0.07
11 Solutions to Problems Problem 11-1 1.
2.
Equivalent Units of Production: Materials: Units transferred out Units in process, end: (100%) EUP
73,000 12,000 85,000
Conversion costs: Units transferred out Units in process, end: (12,000 x 2/3) EUP
73,000 8,000 81,000
Refining Department Cost of Production Report Month of January, 2010 Quantity Schedule Beginning work in process Started in process Units to account for
Units 10,000 75,000 85.000
Transferred out Ending work in process (100%) Total units accounted for
73,000 12,000 85,000
Cost Schedule Materials: BWIP Current cost Total Conversion costs: BWIP Current cost Total costs Total costs to account for
Total Cost
Transferred out Ending work in process: Materials Conversion costs Total EWIP Total costs accounted for
P
64,000 616,000 680,000
EUP
Unit Cost
÷
85,000
=
P 8.00
÷
81,000
=
5.44 P13.44
981,120
=
73,000
x
P13.44
96,000 43,520 139,500 P1,120,620
= =
12,000 8,000
x x
8.00 5.44
39,900 400,720 440,620 1,120,620
12 Problem 11-2 1.
2.
Equivalent Units of Production Materials: Transferred out to next department Ending work in process (100%) EUP Labor: Transferred out to next department Ending work in process (500 x 25%) EUP Overhead: Transferred out to next department Ending wok in process (500 x 40$) EUP
6,500 500 7,000 6,500 125 6,625 6,500 200 6,700
Processing Department Cost of Production Report Month of April Quantity Schedule Beginning work in process Transferred in Total to account for
Units 1,000 6,000 7,000
Transferred out to finished goods Ending work in process Total accounted for
6,500 500 7,000
Cost Schedule Cost from prior department: BWIP – Last month Transferred in – This month Total transferred in costs Cost in this department: Materials: BWIP Current month Total materials Labor: BWIP Current month Total labor cost Overhead: BWIP Current month Total overhead cost Total costs to account for
Total Cost
Transferred out Ending work in process: Cost from prior department Costs this department: Materials Labor Overhead Total EWIP Total costs accounted for *adjusted P1.00 for rounding
P 1,117,476*
P
EUP
Unit Cost
120,000 732,000 852,000
= = ÷
1,000 6,000 7,000
=
P121.714
24,000 90,000 114,000
÷
7,000
=
16.286
25,060 107,440 132,500
÷
6,625
=
20.00
÷
6,700
=
13.919 P171.919
=
6,500
x P171.919
60,857
=
500
x
121.714
8,143 2,500 2,784 74,284 P 1,191,760
= = =
500 125 200
x x x
16.286 20.0 13.919
6,320 86,940 93,260 P 1,191,760
13 Problem 11-3 Ace Department – First Department Equivalent Units of Production Month of June, 2010 Materials: Transferred out to next department Ending work in process (100%) EUP
106,000 8,000 114,000
Conversion costs: Transferred out to next department Ending work in process, (8,000 units x 70%) EUP
106,000 5,600 111,600
Ace Company – First Department Cost of Production Report Month of June 2010 Quantity Schedule Beginning work in process Started in process Total to account for
Units 10,000 104,000 114,000
Transferred out to next department Ending work in process Total accounted for
106,000 8,000 114,000
Cost Schedule Materials: BWIP Current month Total materials Conversion Cost:
Total Cost
BWIP Current month Total CC Total costs to account for
54,000 491,724 545,724 P1,457,724
Transferred out to next department Ending work in process: Materials CC Total EWIP Total costs accounted for
P1,366,339*
= 106,000
x
P12.89
64,000 27,384 91,385 P1,457,724
= =
x x
8.00 4.89
P
80,000 832,000 912,000
EUP
Unit Cost
÷ 114,000
=
P 8.00
÷ 111,600
=
4.89 P12.89
8,000 5,600
14 Problem 11-4 1.
2.
3.
Tan Corporation – Shaping Department Equivalent Units of Production Month of October 2010 Materials: Units transferred out to finished goods Units in ending work in process: (2,000 x 75%) EUP
8,500 1,500 10,000
Conversion costs: Units transferred out to finished goods Units in ending work in process: (2,000 x 50%) EUP
8,500 1,000 9,500
Tan Corporation – Shaping Department Cost of Production Report Month of October 2010 Quantity Schedule Beginning work in process Transferred in from prior department Units to account for
Units 3,000 7,500 10,500
Transferred out Ending work in process Total accounted for
8,500 2,000 10,500
Cost Schedule Cost from prior department: BWIP Current month Total transferred in cost Cost added this department: Materials: BWIP This month Total material cost CC: BWIP This month Total CC Total costs to account for
Total Cost
Transferred out Ending work in process: Cost from prior department Cost added this department: Materials CC Total work in process Total costs accounted for
P 62,000 253,000 315,000
EUP
Unit Cost
= = ÷
3,000 7,500 10,500
=
P30.00
÷
10,000
=
11.40
÷
9,500
=
29.40 P70.80
P601,800
=
8,500
x
P70.80
60,000
=
2,000
x
30.00
17,100 29,400 106,500 P708,300
= =
1,500 1,000
x x
11.40 29.40
31,200 82,800 114,000 52,700 226,600 279,300 P708,300
Work in process – Finishing Department 601,800 Work in process – Shaping Department To record cost of units transferred to Finishing Department.
601,800
15 Problem 11-5 1.
Assembling Department Computation of Equivalent Units of Production Month of June 2010 Materials: Completed and transferred out Ending work in process: (4,000 x 90%) EUP Labor: Completed and transferred out Ending work in process: (4,000 x 70%) EUP Overhead: Completed and transferred out Ending work in process: (4,000 x 35%) EUP
2.
8,000 3,600 11,600 8,000 2,800 10,800 8,000 1,400 9,400
Assembling Department Cost of Production Report Month of June 2010 Quantity Schedule Beginning work in process Transferred in from prior department Total units to account for
Units 2,000 10,000 12,000
Completed and transferred out Ending work in process Total units accounted for
8,000 4,000 12,000
Cost Schedule Cost from prior department: BWIP Cost this month Total transferred in cost Cost added this department: Materials: BWIP This month Total material cost Labor: BWIP This month Total labor cost Overhead: BWIP This month Total overhead cost Total costs to account for
Total cost
Completed and transferred out Ending work in process: Cost from preceding department Cost added this department: Materials Labor Overhead Total ending work in process Total costs accounted for
P 32,000 160,000 192,000
EUP
Unit Cost
= = ÷
2,000 10,000 12,000
=
P16.00
÷
11,600
=
10.00
÷
10,800
=
4.00
÷
9,400
P260,000
=
8,000
x
P32.50
64,000
=
4,000
x
16,00
36,000 11,200 3,500 114,700 P374,700
= = =
3,600 2,800 1,400
x x x
10.00 4.00 2.50
20,000 96,000 116,000 7,200 36,000 43.200 5,500 18,000 23,500 P374,700
=
2.50 P32.50
16 Problem 11-6 1.
2.
Mixing Department Equivalent Units of Production Month of May 2010 Direct materials: Transferred out to Bottling Department Ending work in process EUP
75,000 9,000 84,000
Conversion costs: Transferred out to bottling Department Ending work in process (60% x 9,000) EUP
75,000 5,400 80,400
Mixing Department Cost of Production Report Month of May 2010 Quantity Schedule Beginning work in process Started in process Total to account for
Units 8,000 76,000 84,000
Transferred out Ending work in process Total accounted for
75,000 9,000 84,000
Cost Schedule Direct materials: BWIP This month Total material cost Conversion costs: BWIP This month Total conversion costs Total costs to account for Transferred out to next department Ending work in process: Direct materials Conversion costs Total ending work in process Total costs accounted for
3.
Total Cost P 1,680 18,480 20,160
EUP
Unit Cost
÷
84,000
=
P0.24
÷
80,000
=
0.45 P0.69
P51,750
= 75,000
x
P0.69
2,160 2,430 4,590 P56,340
= =
x x
0.24 0.45
4,020 32,160 36,180 P56,340
Work in process –Bottling Department Work in process – Mixing Department To record cost units finished transferred out.
9,000 5,400
51,750 51,750
17
Problem 11-6 (continued): 4.
Bottling Department Equivalent Units of Production Month of May 2010 Direct materials: Transferred out to finished goods Ending work in process EUP
68,000 - 0 68,000
Conversion costs; Transferred out to finished goods Ending work in process (8,000 x 100%) EUP
68,000 8,000 76,000
Bottling Department Cost of Production Report Month of May 2010 Quantity Schedule Beginning work in process Transferred in from prior department Total to account for
Units 8,000 75,000 83,000
Transferred out finished goods Ending work in process Total accounted for
68,000 15,000 83,000
Cost Schedule Cost from prior department BWIP This month Total transferred in costs Cost added this department: Conversion costs: BWIP This month Total conversion cost Total costs to account for Transferred out to finished goods Ending work in process: Cost from prior department Cost added this department: Conversion costs Total ending work in process Total costs accounted for
5.
Total Cost P 6,350 51,750 58,100
EUP
Unit Cost
= = ÷
8,000 75,000 83,000
=
P0.70
÷
76,000
=
0.37 P1.07
P72,760
=
68,000
x
P1.07
10,500
=
15,000
x
0.70
2,960 13,460 P86,220
=
8,000
x
0.37
2,220 25,900 28,120 P86,220
Finished goods inventory Work in process – Bottling Department To record cost of finished goods.
72,760 72,760
18
Problem 11-7 1.
2.
Equivalent Units of Production Dept. 1
Dept. 2
Materials: Transferred out Ending work in process (100%) EUP
45,000 10,000 55,000
43,000 9,000 52,000
Conversion costs: Transferred out Ending work in process (75%; 50%) EUP
45,000 7,500 52,500
43,000 4,500 47,500
Department 1 Cost of Production Report Month of April 2010 Quantity Schedule Beginning work in process Started in process Total to account for
Units 5,000 50,000 55,000
Transferred out to next department Ending work in process Total accounted for
45,000 10,000 55,000
Cost Schedule Materials: BWIP This month Total material cost Conversion costs: BWIP This month Total conversion costs Total costs to account for
Total Costs
Transferred out to next department Ending work in process: Materials Conversion costs Total ending work in process Total costs to account for
P 12,000 65,000 77,000
EUP
Unit Costs
÷
55,000
=
P 1.40
÷
52,500 =
3.12 P 4.52
P203,400
=
45,000 x
P 4.52
14,000 23,400 37,400 P240,800
= =
10,000 x 7,500 x
1.40 3.12
18,800 145,000 163,800 P240,800
19
Problem 11-7 (continued) Department 2 Cost of Production Report Month of April 2010 Quantity Schedule Beginning work in process Transferred in from prior department Total to account for
Units 7,000 45,000 52,000
Transferred out to finished goods Ending work in process Total accounted for
43,000 9,000 52,000
Cost Schedule Cost from preceding department: BWIP This month Total transferred in costs Cost added this department: Materials: BWIP This month Total material cost CC : BWIP This month Total CC Total costs to account for
Total Cost
Transferred out to finished goods Ending work in process: Cost from prior department Cost added this department: Materials Conversion costs Total work in process Total costs accounted for
P 28,000 203,400 231,400
EUP
Unit Cost
= = ÷
7,000 45,000 52,000 =
÷
52,000
=
÷
47,500
=
2.75 P 8.35
P359,050
=
43,000
x
P 8.35
40,050
=
9,000
x
4.45
10,350 12,375 62,775 P421,825
= =
9,000 x 4,500 x
1.15 2.75
14,800 45,000 59,800 20,625 110,000 130,625 P421,825
P 4.45
1.15
20
Problem 11-8 1.
Equivalent Units of Production
Blending Department
Materials: Transferred out Ending work in process: 100%; 85% EUP Conversion costs; Transferred out Ending work in process: 25%; 85% EUP 2.
Finishing Department
2,180 320 2,500
2,000 238 2,238
2,180 80 2,260
2,000 238 2,238
Orange Company Cost of Production Report Month of March 2010 Blending Department
Finishing Department
Quantity Schedule Beginning work in process Started in process/transferred in Total to account for
Units 200 2,300 2,500
Units 100 2,180 2,280
Transferred out Ending work in process Total accounted for
2,180 320 2,500
2,000 280 2,280
Cost Schedule Transferred in from prior department: BWIP This month Total transferred in costs Cost added this department: Materials: BWIP This month Total material costs C. Costs:
Total Costs P
-
8,000 100,000 108,000
Unit costs P
Total Costs
Unit Costs
P 15,188 339,971 355,159
P155.77
43.20
1,641 42,000 43,641
19.50
33.53 P208.80
-
BWIP This month Total conversion costs Total costs to account for
47,215 207,600 254,815 P362,815
112.75 P155.95
1,840 73,200 75,040 P473,840
Transferred out Ending work in process: Transferred in from prior department Cost added this department: Materials Conversion costs Total work in process
P339,971
P155.95
417,603*
P208.80
-
-
43,616
155.77
13,824 9,020 22,844
43.20 112.75
4,641 7.980 56,237
19.50 33.53
Total costs accounted for
P362,815
P473,840
21 *P3 difference due to rounding
Problem 11-9 a.
Striping Department: Beginning work in process inventory Current costs: DM DL Overhead (P80,000 x 80%) Total Less ending work in process inventory Costs transferred to Adhesion
b.
P 20,000 90,000 80,000 64,000 P254,000 17,000 P237,000
Adhesion Department: Let CC = conversion costs BWIP + TI + DM + CC - To = EWIP P70,000 + P237,000 + P22,600 + CC - P480,000 = P20,600 CC - P150,000 = P20,600 CC = P171,000 DL + OH = CC DL + .80DL = CC 1.80DL = P171,000 DL = P95,000 OH = P95,000 x .80 = P76,000
c.
Cost of goods manufactured is equal to the cost of goods transferred to finished goods (P880,000). OH = .80 DL P90,000 = .80 DL DL = P112,500 BWIP + TI + DM + DL + OH - CGM = P40,000 P150,000 + P480,000 + DM + P112,500 + P90,000 - P880,000 = P40,000 DM - P47,500 = P40,000 DM = P87,500
d.
Work in process inventory – Adhesion Work in process inventory – Striping
237,000
Work in process inventory – Packaging Work in process inventory – Adhesion
480,000
Finished goods inventory Work in process inventory – Packaging
880,000
Cost of goods sold
720,000
237,000 480,000 880,000
22 Finished goods inventory
720,000
