At the beginning of September, the Ellery Company had P 27,950 (direct materials P7.800, conversion cost - P 20,150) in Department A's beginning work in process inventory. The inventory consisted of 15,500 units which håd 100% of direct materiałs and 65% of conversion cost. During September, 36,000 units were started in process. Costs incurred during the month were: direct materials - P54,000; conversion costs P 79,000. As the 48,000 units were completed, they were immediately transferred to Department B. At the end of September, 3,500 were still in process and are 100% complete as to materials, and 45% converted. Required: Using average method and FIFO method determine the following 1. Equivalent production for materials and conversion cost 2. Unit cost for materials and conversion cost 3. Total costs of units completed and transferred I ... I...... ...... i...... I..... I .. 4. Total costs of units in process, end I...... I......

At the beginning of September, the Ellery Company had P 27,950 (direct materials P7.800, conversion cost - P 20,150) in Department A's beginning work in process inventory. The inventory consisted of 15,500 units which håd 100% of direct materiałs and 65% of conversion cost. During September, 36,000 units were started in process. Costs incurred during the month were: direct materials - P54,000; conversion costs P 79,000. As the 48,000 units were completed, they were immediately transferred to Department B. At the end of September, 3,500 were still in process and are 100% complete as to materials, and 45% converted. Required: Using average method and FIFO method determine the following 1. Equivalent production for materials and conversion cost 2. Unit cost for materials and conversion cost 3. Total costs of units completed and transferred I ... I...... ...... i...... I..... I .. 4. Total costs of units in process, end I...... I......

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%
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A direct material standard cost is? The cost of direct materials that should be incurred to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production. The amount of direct materials that should be used to produce one unit of output or product.