1

CHAPTER 10 16. (a)

Materials are added in Department 1.
1. b 6. c 11. d 17. (c)
2. c 7. c Units transferred out to finished goods (100%) 61,400
3. b 8. c Units in process, end (18,600 x 72%) 13,392
4. b 9. c Equivalent units of production – conversion cost 74,792
5. b 10. a 18. (b)
Equivalent units of production:
Units finished and transferred to finished goods 28,000
Units in process, end (9,000 x 35%) 3,150
1. (d) EUP 31,250
Units started in process 95,000
Units in process, end - Dept. 1 ( 21,000) Unit cost:
Units in process, end - Dept. 2 ( 12,000) Transferred in cost: (P24,050 / 37,000) P0.65
Units transferred out to finished goods 62,000 This department: (P18,690 / 31,150) 0.60
2. (a) Units in process, end:
Units in process, beginning 6,000 Transferred in cost: (9,000 x P0.65) P5,850
Units placed in process 14,000 Cost this department: (3,150 x P0.60) 1,890
Units in process, end (4,200) Cost of units in process, end P7,740
Units transferred out to Dept. 2 15,800 19. (b)
3. (a) Equivalent units of production:
Units completed and transferred out (100%) 29,000 Materials:
Units in process, end (3,000 x 80%) 2,400 Units finished and transferred out 48,000
Equivalent units of production – Materials 31,400 Ending work in process 12,000
4. (a) EUP 60,000
P188,400 / 31,400 = P6.00
5. (a) Conversion cost:
Units transferred to finished goods (100%) 4,300 Units finished and transferred out 48,000
Ending work in process (400 x 25%) 100 Ending work in process (12,000 x 70%) 8,400
Equivalent units of production 4,400 EUP 56,400
6. (a)
P14,080 / 4,400 = P3.20 Unit costs:
7. (a) Transferred in cost: (P24,750 / 55,000) P0.45
100 x P3.20 = P320 This department:
8. (a) Materials; (P7,200 / 60,000) P0.12
Units placed in production 73,000 CC: (P53,580 / 56,400) 0.95 0.95
Units transferred out to next department (67,000) Total unit cost P1,52
Units in ending work in process 6,000 20. (b)
9. (a) Equivalent units of production:
Units transferred out to next department (100%) 67,000 Materials:
Units in ending work in process (6,000 x 1/3) 2,000 Units transferred out (15,000 – 3,000) 12,000
Equivalent units of production – overhead 69,000 Units in process, end -0-
10. (b) EUP 12,000
P282,900 / 69,000 = P4.10 x 67,000 = P274,700.
11. (a) Conversion cost:
2,000 EUP x P4.10 = P8,200 Units transferred out 12,000
12. (a) Units in process, end (3,000 x 2/3) 2,000
Units completed and transferred out (100%) 3,620 EUP 14,000
Units completed and on hand (100%) 80
Units in ending work in process (200 x 65%) 130 Cost of units transferred out:
Equivalent units of production 3,830 Transferred in; (P13,500 / 15,000) P0.90
Materials: (12,000 x 4 x P.02) = P960 / 12,000 0.08
Unit cost = (P27,193 / 3,830) P7.10 Conversion cost: (P14,210 / 14,000) 1.015
Total unit cost P1,995
Labor ost of units transferred out: (3,620 x P7.10) P25,702 Cost of units transferred out: (12,000 x P1.995) P23,940
21. (d)
13. (a) Equivalent units of production:
Materials:
80 x P7.10 = P568 Units transferred out to finished goods 530,000
14. (a) Ending units in process:
Units started into production 3,900 10% x 70,000 = 7,000 -0–
Units completed 3,700 40% x 70,000 = 28,000 -0–
Units in process, end 200 15% x 70,000 = 10,500 10,500
15. (a) 35% x 70,000 = 24,500 24,500 35,000
130 x P7.10 EUP 565,000
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EUP 10,000
Conversion cost:
Units transferred out to finished goods 530,000 Conversion cost:
Ending units process: Units completed 9,000
7,000 x 30% 2,100 Units in process, end (1,000 x50%) 500
28,000 x 60% 16,800 EUP 9,500
10,500 x 75% 7,875
24,500 x 85% 20,825 47,600 Unit costs:
EUP 577,600 Materials: (P720,000 / 10,000) P72
Conversion cost: (760,000 / 9,500) 80
Unit cost:
Transferred in: (P300,000 / 500,000) P . 60 Materials: 26. (a)
(P559,350 / 565,000) .99
Conversion cost: (P606,480 / 577,600) 1.05 Equivalent units of production: Chemical P Chemical Q
Total unit cost P2.64 Materials:
Completed and transferred out 35,000 35,000
Cost of ending work in process: Ending work in process:
Transferred in: (70,000 x P0.60) P 42,000 Chemical P: (15,000 x 100%) 15,000
Materials: (35,000 x P0.99) 34,650 Chemical Q: - 0 -
Conversion cost: (47,600 x P1.05) 49,980 EUP 50,000 35,000
Total P126,630

Conversion cost:
22. (a) Completed and transferred out 35,000
Ending work and process; (15,000 x 2/3) 10,000
Transferred in cost: (32,000 x P8.39( P268,480 EUP 45,000
Cost added:
Direct labor: (20,000 x P3.19) P63,800 Unit costs:
Overhead: (20,000 x P1.20) 24,000 87,800 Materials:
Cost to account for P356,280 Chemical P: (P250,000 / 50,000) P 5.00
Chemical Q: (P70,000 / 35,000) 2.00
Conversion cost: (P135,000 / 45,000) 3.00
23. (b) Total unit cost P10,00

Unit cost from preceding department: (P391,500 / 78,300) P 5.00 Completed and transferred out: (35,000 x P10) P350,000
Unit cost this department:
Direct materials P 1.23
Conversion costs 2.50 3.73 27. (a)
Total unit costs P 8.73
Ending work in process::
Total units to account for 78,300 Materials: Chemical P (15,000 x P5) P 75,000
Units transferred in: (P508,959 / P8.73) 58,300 Conversion cost: (10,000 x P3) 30,000
Units in process, end 20,000 Cost of ending work in process P105,000

Total cost to account for:

Units transferred to finished goods P508,959
Units in process, end:
Transferred in cost (20,000 x P5.00) P100,000
Cost added this department:
DM: (20,000 x P1.23) 24,600 Problem 10-1
CC: (20,000 x 45%) x P2.50 22,500 147,100
Total cost to account for P656,059 D E P A R T M E N T S
1 2 3 4 5
Units started in process 10,000 - - - -
24. (a) Units transferred in - (b) 4,000 3,000 (c) 2,400 (g) 2,100
Units to account for 10,000 4,000 3,000 2,400 2,100
P1,480,000 / 10,000 units = P148
Transferred to next department (a) 4,000 3,000 (d) 2,400 (f) 2,100 -
Transferred to finished goods - - - - (h) 1,600
25. (a)
Ending work in process 6,000 (c) 1,000 600 300 500
Units accounted for 10,000 4,000 3,000 2,400 2,100
Equivalent units of production:
Materials:
Units completed 9,000 PROBLEM 10-2
Units in process, end 1,000
Dept. A Dept. B Dept. C
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Materials:
Transferred out (100%) 15,000 12,000 9,000 Cost accounted for:
Ending work in process 10,000 Transferred out P25,740 = 11,000 x P2.34
EUP 25,000 12,000 9,000 Work in process, end:
Cost transferred in 2,480 = 2,000 x 1.24
Conversion cost: Cost added:
Transferred out 15,000 12,000 9,000 CC 756 = 900 x 0.84
Ending work in process 7,500 1,500 900 Total cost accounted for P28,976
EUP 22,500 13,500 9,900
Problem 10-5
1. Equivalent Units of Production Dept. 1 Dept. 2
Materials:
Problem 10-3 Units transferred out (100 %) 60,000 55,000
Ending units in process 15,000 -0-
Materials: EUP 75,000 55,000
Units transferred out: (50,000 – 10,000) 40,000
Units in process, end: Conversion cost:
10,000 x 25% = 2,500 x 20% 500 Units transferred out 60,000 55,000
10,000 x 30% = 3,000 x 50% 1,500 Ending units in process 9,000 4,000
10,000 x 25% = 2,500 x 80% 2,000 EUP 69,000 59,000
10,000 x 20% = 2,000 x 100% 2,000 6,000
EUP 46,000 2. Department 1
Cost of Production Report
Conversion cost: Month of January, 2010
Units transferred out 40,000
Units in process, end: Quantity Schedule Units
2,500 x 35% 875 Units started in process 75,000
3,000 x 55% 1,650
2,500 x 80% 2,000 Units transferred out 60,000
2,000 x 95% 1,900 6,425 Units in process, end 15,000
EUP 46,425 Total accounted for 75,000

Problem 10-4 Cost Schedule Total Cost EUP Unit Cost

Direct materials P300,000 ÷ 75,000 = P4.00
Conversion costs 258,750 ÷ 69,000 = 3.75
1. Equivalent units of production Total cost to account for P558,750 P7.75
Materials:
Units transferred out: (13,000 – 2,000) 11,000 Transferred out P465,000 = 60,000 x P7.75
Units in process, end -0– Units in process, end:
EUP 11,000 Materials 60,000 = 15,000 x 4.00
CC 33,750 = 9,000 x 3.75
Conversion cost: Total accounted for P558,750
Units transferred out 11,000
Units in process, end (2,000 x 45%) 900 Department 2
EUP 11,900 Cost of Production Report
Month of January, 2010

Quantity Schedule Units

2. Department 2 Units transferred in 60,000
Cost of Production Report
Month of July 31, 2010 Units transferred out 55,000
Units in process, end 5,000
Quantity Schedule: Units Total accounted for 60,000
Transferred in 13,000
Cost Schedule Total Cost EUP Unit Cost
Transferred out 11,000 Transferred in cost P465,000 ÷ 60,000 = P 7.75
Work in process, end 2,000 Cost added this department: CC 243,375 ÷ 59,000 = 4.125
Total accounted for 13,000 Total cost to account for P708,375 P11.875

Cost Schedule Total Cost EUP Unit Cost Transferred out P653,125 = 55,000 x P11.875
Cost transferred in P16,120 ÷ 13,000 = P1.24 Units in process, end:
Cost added in this dept. Transferred in 38,750 = 5,000 x 7.75
Materials 2,860 ÷ 11,000 = 0.26 Cost added: CC 16,500 = 4,000 x 4.125
CC 9,996 ÷ 11,900 = 0.84 Total accounted for P708,375
Total cost to account for P28,976 P2.34 Problem 10-6
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Transferred in cost P71,300 ÷ 115,000 = P0.62
(1) Equivalent Units of Production Dept. 1 Dept. 2 Dept. 3 Cost added this department: CC 24,087 ÷ 114,700 = 0.21
Materials: Total cost to account for P95,387 P0.83
Units transferred out 125,000 115,000 112,000
Units in process, end 25,000 - 0 - - 0 - Transferred out to finished goods P92,960 = 112,000 x P0.83
EUP 150,000 115,000 112,000 Ending work in process:
Transferred in cost 1,860 = 3,000 x 0.62
Conversion Costs Cost added this dept.: CC 567 = 2,700 x 0.21
Units transferred out 125,000 115,000 112,000 Total accounted for P95,387
Units in process, end 10,000 1,000 2,700
EUP 135,000 116,000 114,700 Problem 10-7

(2) Cost of Production Reports: 1. Equivalent Units of Production Dept. 1 Dept. 2

Materials:
Department 1: Transferred out 15,000 7,000
Quantity Schedule Units Completed and on hand - 1,000
Started in process 150,000 Ending work in process 8,000 - 0-
EUP 23,000 8,000
Transferred out 125,000
Ending work in process 25,000 Conversion cost:
Total accounted for 150,000 Transferred out 15,000 7,000
Completed and on hand - 1,000
Cost Schedule Total Cost EUP Unit Cost Ending work in process 6,500 5,250
Materials P21,000 ÷ 150,000 = P0.14 Conversion costs EUP 21,500 13,250
24,300 ÷ 135,000 = 0.18
Total cost to account for P45,300 P0.32 2. Cost of Production Report

Transferred out P40,000 = 125,000 x P0.32 Department 1

Ending work in process: Quantity Schedule Units
Materials 3,500 = 25,000 x 0.14 Started in process 25,000
Conversion cost 1,800 = 10,000 x 0.18
Total accounted for P45,300 Transferred out 15,000
Ending work in process 10,000
Department 2 Total accounted for 25,000
Quantity Schedule Units
Transferred in 125,000 Cost Schedule Total Cost EUP Unit Cost
Direct materials P12,650 ÷ 23,000 = P0.55
Transferred out 115,000 Conversion cost 18,705 ÷ 21,500 = 0.87
Ending work in process 10,000 Total cost to account for P31,355 P1.42
Total accounted for 125,000
Transferred out P21,300 = 15,000 x P1.42
Cost Schedule Total Cost EUP Unit Cost Ending work in process: DM 4,400 = 8,000 x 0.55
Transferred in cost P40,000 ÷ 125,000 = P0.32 CC 5,655 = 6,500 x 0.87
Cost added this department: Total accounted for P31,355
Conversion cost 34,800 ÷ 116,000 = 0.30 Problem 10-7 (Continued)
Total cost to account for P74,800 P0.62
Department 2
Transferred out P71,300 = 115,000 = P0.62
Ending work in process: Quantity Schedule Units
Transferred in cost 3,200 = 10,000 = 0.32 Transferred in 15,000
Cost added this dept. – CC 300 = 1,000 = 0.30
Total accounted for P74,800 Transferred out to finished goods 7,000
Completed and on hand 1,000
Ending work in process 7,000
Problem 10-6 (continued): Total accounted for 15,000

Department 3 Cost Schedule Total Cost EUP Unit Cost

Quantity Schedule Units Transferred in cost P21,300 ÷ 15,000 = P 1.42
Transferred in 115,000 Cost added this department: CC 16,430 ÷ 13,250 = 1.24
Total cost to account for P37,730 P 2.66
Transferred out 112,000
Ending work in process 3,000 Transferred out to finished goods P18,620 = 7,000 x P 2.66
Total accounted for 115,000 Completed and on hand 2,660 = 1,000 x 2.66
Ending work in process:
Cost Schedule Total cost EUP Unit Cost Transferred in cost 9,940 = 7,000 x 1.42
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Cost added this dept.: CC 6,510 = 5,250 x 1.24 Transferred out to finished goods 1,800
Total accounted for P37,730 Ending work in process (60 x 40%) 24
EUP 1,824
Problem 10-8
Labor:
1. Equivalent Units of Production: Transferred out to finished goods 1,800
Ending work in process (60 x 10%) 6
Materials: 101 102 103 104 EUP 1,806
Transferred out 250,000 250,000 250,000 250,000
Ending units in process: 2. Peninsula Company – Assembly Department
50,000 x 30% = 15,000 15,000 15,000 - - Cost of Production Report
50,000 x 35% = 17,500 17,500 17,500 - - Month of August
50,000 x 15% = 7,500 7,500 7,500 7,500 -
50,000 x 20% = 10,000 10,000 10,000 10,000 10,000 Quantity Schedule Units
EUP 300,000 300,000 17,500 10,000 Started in process 2,000

Conversion Cost: Transferred out to next department 1,860

Transferred out 250,000 Work in process, end 140
Ending units in process: Total accounted for 2,000
15,000 x 45% 6,750
17,500 x 50% 8,750 Cost Schedule Total Cost EUP Unit Cost
7,500 x 65% 4,875 Materials P30,000.00 ÷ 2,000 = P15.00
10,000 x 98% 9,800 Labor 29,670.00 ÷ 1,965 = 15.10
EUP 280,175 Overhead 18,830.00 ÷ 1,965 = 9.58
Total cost to account for P78,500.00 P39.68
2. Unit costs:
Materials: Transferred out to next department P73,808.00* = 1.860 x P39.68
101: (P6,000 / 300,000) P0.02 Work in process, end:
102: (P3,000 / 300,000) 0.01 Materials 2,100.00 = 140 x 15.00
103: (P9,362.50 / 267,500) 0.035 Labor 1,586.00 = 105 x 15.10
104: (P13,000 / 260,000) 0.05 P0.115 Overhead 1,006.00 = 105 x 9.58
Conversion cost: (P117,763.50 / 280,175) 0.42 Total work in process 4,692.00
Total unit costs P0.535 Total cost accounted for P78,500.00
*P3 adjustment for rounding.
Problem 10-8 (Continued):
Peninsula Company – Finishing Department
Cost of ending work in process inventory: Cost of Production Report
Materials: Month of August
101: (50,000 x P0.02) P 1,000.00
102: (50,000 x P0.01) 500.00 Quantity Schedule Units
103: (17,500 x P0.035) 612.50 Transferred in from prior department 1,860
104: (10,000 x P0.05) 500.00
Total P 2,612.50 Transferred out to finished goods 1,800
Conversion cost: (30,175 x P0.42) 12,673.50 Work in process, end 60
Total cost P15,286.00 Total accounted for 1,860

Cost Schedule Total Cost EUP Unit Cost

Problem 10-9 Transferred in cost from prior dept. P 73,808.00 ÷ 1,860 = P39.68
Cost added this department:
Materials 68,000.00 ÷ 824 = 37.28
1. Equivalent Units of Production: Labor 13,660.00 ÷ 1,806 = 7.57
Overhead 7,825.00 ÷ 1,824 = 4.29
Assembly Department: Total cost to account for P163,298.00 P88.82
Materials:
Transferred out to next department 1,860 Transferred out to finished goods P159,874.00* = 1,800 x P88.82
Ending work in process (100%) 140 Work in process, end:
EUP 2,000 Transferred in cost 2,381.00 = 60 x 39.68
Cost added this dept.:
Conversion cost: Materials 895.00 = 24 x 37.28
Transferred out 1,860 Labor 45.00 = 6 x 7.57
Ending work in process: (140 x 75%) 105 Overhead 103.00 = 24 x 4.29
EUP 1,965 Total cost of work in process 3,424.00
Total costs accounted for P163,298.00
Finishing Department: *P2 Rounding adjustment
Materials and overhead: 3. Work in process – Assembly Department 78,500
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Work in process – Finishing Department 89,490
Materials 98,000 Quantity Schedule Units
Factory payroll 43,330 Transferred in from prior department 5,400
Factory overhead control 26,660
To record allocation of production cost. Transferred out to next department 5,000
Work in process, end 400
4. Work in process – Finishing Department 73,808 Total accounted for 5,400
Work in process – Assembly Department 73,808
To record transfer of goods from Assembly to Cost Schedule Total Cost EUP Unit Cost
Finishing Department. Transferred in cost P56,225 ÷ 5,400 = P10.41203
Cost added this department:
5. Finished goods 159,874 Materials 16,786 ÷ 5,380 = 3.12007
Work in process – Finishing Department 159,874 Labor 14,840 ÷ 5,300 = 2.80
To record completion of goods transferred to finished Overhead 7,120 ÷ 5,340 = 1.33333
Goods inventory. Total costs to account for P94,971 P17.66543

Problem 10-10 Transferred out to next department P88,328* = 5,000 x P17.66543

Work in process, end:
1. Equivalent Units of Production Transferred in cost 4,164 = 400 x 10.41203
Trimming Assembly Finishing Cost added this department:
Department Department Department Materials 1,186 = 380 x 3.12007
Materials: Labor 840 = 350 x 2.80
Transferred out 5,400 5,000 4,800 Overhead 453 = 340 x 1.33333
Work in process, end 600 380 160 Total work in process 6,643
EUP 6,000 5,380 4,960 Total costs accounted for P94,971
P1 difference due to rounding
Labor: Finishing Department
Transferred out 5,400 5,000 4,800 Cost of Production Report
Work in process, end 360 300 180 Month of June, 2010
EUP 5,760 5,300 4,980
Quantity Schedule Units
Overhead: Transferred in from prior department 5,000
Transferred out 5,400 5,000 4,800
Work in process, end 360 340 160 Transferred out to finished goods 4,800
EUP 5,760 5,340 4,960 Work in process, end 200
Total accounted for 5,000
2. Trimming Department
Cost of Production Report Cost Schedule Total Cost EUP Unit Cost
Month of June, 2010 Transferred in cost from prior dept. P 88,328 ÷ 5,000 = P17.66560
Cost added this department:
Quantity Schedule Units Materials 6,400 ÷ 4,960 = 1.29032
Started in process 6,000 Labor 10,320 ÷ 4,980 = 2.07228
Overhead 4,960 ÷ 4,960 = 1.00
Transferred out to next department 5,400 Total costs to be accounted for P110,008 P22.02820
Work in process, end 600
Total accounted for 6,000 Transferred out to finished goods P105,735 = 4,800 x P22.02920
Work in process, end:
Cost Schedule Total Cost EUP Unit Cost Transferred in cost 3,533 = 200 x 17.66560
Materials P33,600 ÷ 6,000 = P 5.60 Cost added this department:
Labor 18,500 ÷ 5,760 = 3.21180 Materials 207 = 160 x 1.29032
Overhead 9,217 ÷ 5,760 = 1.60017 Labor 373 = 180 x 2.07228
Total costs to account for P61,317 P10.41197 Overhead 160 = 160 z 1.00
Total work in process 4,273
Transferred out to next department P56,225 = 5,400 x P10.41197 Total costs accounted for P110,008
Work in process, end:
Materials 3,360 = 600 x 5.60
Labor 1,156 = 360 x 3.21180 3a. Work in process – Trimming Department 61,317
Overhead 576 = 360 x 1.60017 Work in process – Assembly Department 38,746
Total work in process 5,092 Work in process – Finishing Department 21,680
Total costs accounted for P61,317 Materials 56,786
Factory payroll 43,660
Factory overhead control 21,297
Assembly Department To record manufacturing costs.
Cost of Production Report
Month of June, 2010 3b. Work in process – Assembly Department 56,225
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Work in process – Trimming Department 56,225
To record transfer of goods from Trimming to
Assembly Department.

3c. Work in process – Finishing Department 88,328

Work in process – Assembly Department 88,328
To record transfer of goods from Assembly
To Finishing Department.

3c. Finished goods I 105,735

Work in process – Finishing Department 105,735
To record completion of finished goods.