26. How many units were in the beginning work-in-process? In July 2020, ABC Co. computed its equivalent unit costs under FIFO process costing as follows: Direct material P10 Direct labor 30 Packaging 20 Manufacturing overhead 15 Direct material and packaging are added at the start and end of processing, respectively. Beginning inventory cost was P500,000 and consisted of: • P100,000 direct material cost for 60,000 EUP; • P250,000 direct labor cost for 24,000 EUP; and • P150,000 manufacturing overhead cost 18,000 EUP. ABC Co. transferred a total of 500,000 units to finished goods during July and had 20,000 units in ending WIP inventory. The ending inventory units were 25 percent complete as to direct labor and 30 percent complete as to overhead. How many units were in the beginning work-in-process?

26. How many units were in the beginning work-in-process? In July 2020, ABC Co. computed its equivalent unit costs under FIFO process costing as follows: Direct material P10 Direct labor 30 Packaging 20 Manufacturing overhead 15 Direct material and packaging are added at the start and end of processing, respectively. Beginning inventory cost was P500,000 and consisted of: • P100,000 direct material cost for 60,000 EUP; • P250,000 direct labor cost for 24,000 EUP; and • P150,000 manufacturing overhead cost 18,000 EUP. ABC Co. transferred a total of 500,000 units to finished goods during July and had 20,000 units in ending WIP inventory. The ending inventory units were 25 percent complete as to direct labor and 30 percent complete as to overhead. How many units were in the beginning work-in-process?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

26. How many units were in the beginning work-in-process?
In July 2020, ABC Co. computed its equivalent unit costs under FIFO process costing as
follows:
Direct material P10
Direct labor 30
Packaging 20
Manufacturing overhead 15
Direct material and packaging are added at the start and end of processing, respectively.
Beginning inventory cost was P500,000 and consisted of:
• P100,000 direct material cost for 60,000 EUP;
• P250,000 direct labor cost for 24,000 EUP; and
• P150,000 manufacturing overhead cost 18,000 EUP.
ABC Co. transferred a total of 500,000 units to finished goods during July and had 20,000
units in ending WIP inventory. The ending inventory units were 25 percent complete as to
direct labor and 30 percent complete as to overhead.
How many units were in the beginning work-in-process?
1

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