308Cost AccountingChapter 10 Process Costing309Problem 8.Problem 10Juniper Company manufactures a single product in two departments, Cutting andFinishing. Units of product are started in the Cutting Department and then transferredto the Finishing Department, where they are completed. Units are inspected at the endof the production process in the Finishing Goods Inventory, and spoiled units aretransferred to Spoiled Goods Inventory. Spoiled units are inventoried at their salvagevalue of P15.00 each, and the unrecoverable cost of spoilage is charged to FactoryThe JBriones Company uses process costing in its two producing departments. Thefollowing information pertain to Department 2 for November.Normal spoilage is 5% of output; inspection and identification of spoilage take placeat the end of the process; materials are added after inspection.Overhead Control.Department 2 received 28,000 units from Department 1 at a cost of P280,000.Department 2 costs were P24,000 for materials and P180,000 for conversion costs.During July, 5,000 units were transferred from the Cutting Department to theFinishing Department and 3,800 were transferred from the Finishing Department toFinished Goods Inventory. At the end of July, the Finishing Department still had 800units in process, 40% complete as to materials and 20% complete as to conversioncosts. Cost data related to July operations in the Finishing Department are:Cost from preceding departmentA total of 16,000 units were completed and transferred to finished goods. At the endof the month, 10,000 units were still in process, estimated to be 60% complete as toconversion costs.Required: Cost of production report for Department 2.P 60,00022,600.17,44013,080MaterialsLaborOverheadProblem 9The EDSA Corporation manufactures a product in two departments. Materials areadded in each department, increasing the number of units manufactured. A summaryof the cost for the company's first month of operations (January) is as follows:Required:1. Cost of production report for the Finishing Department.2. Prepare the appropriate general journal entry to record the transfer of cost outof the Finishing Department this period.Department1180,00078,00015,600Department 2135,00082,80041,400-MaterialsProblem 11LaborData presented below were taken from the books of the Diamond Company for themonth of September, 2019.Factory OverheadThe production supervisor reports that 60,000 units were put into production inDepartment 1. Of this quantity, 15,000, a normal number, were lost in production3;and 36,000 were completed and transferred to Department 2. For the balance inprecess at the end of the month, all materials had been added, but only one third of thelabor and factory overhead had been applied.Units transferred inUnits added to productionUnits transferred outUnits in process, endMaterials 100% complete, conversion costs70% completeCosts transferred in55,0005,00048,00012,000P.24,750In Department 2, 9,000 units of materials were purchased outside and added to theunits received from Department 1; 39,000 were completed and transferred to finishedgoods inventory. The remainder were in process at the end of the month, with allmaierials added, but oniy 40% compleie for labor and factory overhead.Cost added in the departmentDirect materials7,20053,580Conversion costRequired:1. Determine the equivalent production for materials and conversion costs2. Determine the cost of the units transferred out3. Determine the cost of the units in process, endRequired: Cost of production report.2021.12.02 03:42 Chapter 10 Process Costing307Cost Accounting306Problem 6Ten-Ten Corporation manufactures a chocolate covered strawberry-filled candy barusing two departments, Prócessing and Packaging.Problem 4The following data appeared in the accounting records of The Beautiful Company:Started in processCompleted and transferredWork in process, end of monthStage of completionCosts:Materials12,000 units10,500 units1,500 units2/5 completeThe first step in the Processing Department is to add strawberry.. The strawberry isthén cooked and seasoned. Conversion costs are assumed to be incurred evenlythroughout the process. The last step in the Processing Department before going onthe Packaging is the covering of the strawberry with chocolate.72,000P.88,80044,400LaborOne half of the materials are added at the beginning of the process and the balancewhen the units are one-half completed.For the month of July, 2019, 90,000 units were completed and at the end of themonth, 10,000 remains in process and are 70% completed. Materials cost incurred,strawberry - P180,000; chocolate - P 135,000, and conversion costs, P 116,400.OverheadRequired: Calculate the following:1. Equivalent production for materials and conversion cost.2. Cost of the units completed and transferred.Required: 1. Equivalent production for strawberry, chocolate and conversion cost2 Unit cost for strawberry, chocolate and conversion cost3. Total costs of units coimpleted and transferred to the next department4 Total costs of the units in process, end3. Cost of the units in process at the end of the month.Problem 7Lenlen Corporation produces a product through a continuous process in twodepartments. Materials in this department are added at the beginning of the process.The production and cost data were taken from Department B during September, 2019.Production data:Received fromn Department ACompleted and transferredIn process, end (50% complete).LostCost data:Problem 5ABM Company uses two departments to produce a product. The following data weretaken from the books for the month of January, 2019.Department 1Department 280,000 units60,000 units10,000 units10,000 unitsUnits:Started60,00040,00030,00010,00080%Completed & transferredIn process, endStage of completionCosts:MateriaisLabor20,00075%P 480,000330,000220,000P 245,000190,000114,000Received from Department AMaterialsLaborOverheadCost of production report under the following assumptions:560,000175,000121,875243,750Required:a. Lost units - normal, discovered at the beginningb. Lost units - normal, discovered at the endC. Lost units - abnermal, discovered when 60% completedFactory overheadDepartment 1- all materials added at the beginning of the process.Department 2 - 50% of the materials are added at the beginning of the process,remaining 50% added at the end of the process.d. Lost units abnormal, discovered at the end. The estimated value of thespoiled units P 12.00 each.Required: Cost of production report.2021.12.02 03:42

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Description: 308Cost AccountingChapter 10 Process Costing309Problem 8.Problem 10Juniper Company manufactures a single product in two departments, Cutting andFinishing. Units of product are started in the Cutting Department and then transferredto the Finishing De

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308 Cost Accounting Chapter 10 Process Costing 309 Problem 8 Problem 10 The JBriones Company uses process costing in its two producing departments. The following information pertain to Department 2 for November. Juniper Company manufactures a single product in two departments, Cutting and Finishing. Units of product are started in the Cutting Department and then transferred to the Finishing Department, where they are completed. Units are inspected at the end of the production process in the Finishing Goods Inventory, and spoiled units are transferred to Spoiled Goods Inventory. Spoiled units are inventoried at their salvage value of P15.00 each, and the unrecoverable cost of spoilage is charged to Factory Overhead Control. Normal spoilage is 5% of output; inspection and identification of spoilage take place at the end of the process; materials are added after inspection. Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for conversion costs. During July, 5.000 units were transferred from the Cutting Department to the Finishing Department and 3,800 were transferred from the Finishing Department to Finished Goods Inventory. At the end of July, the Finishing Department still had 800 units in process, 40% complete as to materials and 20% complete as to conversion costs. Cost data related to July operations in the Finishing Department are: Cost from preceding department Materials Labor Overhead Required: 1. Cost of production report for the Finishing Department. 2. Prepare the appropriate general journal entry to record the transfer of cost out of the Finishing Department this period. A total of 16,000 units were completed and transferred to finished goods. At of the month, 10,000 units were still in process, estimated to be 60% complete as to end conversion costs. Required: Cost of production report for Department 2. P 60,000 22,600 17,440 13,080 Problem 9 The EDSA Corporation manufactures a product in two departments. Materials are added in each department, increasing the number of units manufactured. A summary of the cost for the company's first month of operations (January) is as follows: Department 2 135,000 82,800 41,400 Department! P. Materials Labor Factory Overhead 180,000 78,000 15,600 Problem 11 Data presented below were taken from the books of the Diamond Company for the month of September, 2019. Units transferred in Units added to production Units transfered out Units in process, end Materials 100% complete, conversion costs 70% complete Costs transferred in Cost added in the department 55,000 5,000 The production supervisor reports that 60,000 units were put into production in Department 1. Of this quantity, 15,000, a normal number, were lost in production; and 36,000 vwere completed and transferred to Department 2. For the balance in process at the end of the month, all materials had been added, but only one third of the labor and factory overhead had been applied. 48,000 12,000 P 24,750 In Department 2, 9,000 units of materials were purchased outside and addedto the units received from Department 1; 39,000 were completed and transferred to finished goods inventory. The remainder were in process at the end of the month, with all aterials addod, but only 40% compleie for labor and factory overhead. Direct materials Conversion cost 7,200 53,580 Requited: 1. Determine the equivalent production for materials and conversion costs 2. Determine the cost of the units transferred out 3. Determine the cost of the units in process, end Required: Cost of production report.