BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. WIP, End Stage of Completion Casting Assembly Finishing 500 1,000 300 25% 50% 50% 2,700 2,900 2,800 800 800 400 90% 40% 50% Cost Data: WIP, Beg Cost from Preceding Dept Materials Direct Labor P63,150 P42,840 P10,925 40,258 338 2,760 12,426 12,426 FOH 2,839 4,140 Factory costs: Materials Direct Labor 146, 575 116,480 16,362 44,408 12,240 18,360 FOH 48,461 44,408 1. Using Average method compute for the Equivalent unit for costing. 2. Using FIFO compute for the Equivalent unit for finishing department.
BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. WIP, End Stage of Completion Casting Assembly Finishing 500 1,000 300 25% 50% 50% 2,700 2,900 2,800 800 800 400 90% 40% 50% Cost Data: WIP, Beg Cost from Preceding Dept Materials Direct Labor P63,150 P42,840 P10,925 40,258 338 2,760 12,426 12,426 FOH 2,839 4,140 Factory costs: Materials Direct Labor 146, 575 116,480 16,362 44,408 12,240 18,360 FOH 48,461 44,408 1. Using Average method compute for the Equivalent unit for costing. 2. Using FIFO compute for the Equivalent unit for finishing department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers,
portable generators and pumps. The basic engine block is cast from steel and machined in the casting
Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other
component parts are added. After assembly, it is transferred to the finishing department where the
engine is tested. Data related to February operations are:
Quantity Data:
WIP, Beg
Stage in completion
Transferred to next Dep't.
Casting
Assembly
Finishing
500
1,000
300
25%
50%
50%
2,700
2,900
2,800
WIP, End
800
800
400
Stage of Completion
90%
40%
50%
Cost Data:
WIP, Beg
Cost from Preceding Dept
P63,150
P42,840
Materials
P10,925
40,258
Direct Labor
338
12,426
2,760
FOH
2,839
12,426
4,140
Factory costs:
Materials
146, 575
116,480
Direct Labor
16,362
44,408
12,240
FOH
48,461
44,408
18,360
1. Using Average method compute for the Equivalent unit for costing.
2. Using FIFO compute for the Equivalent unit for finishing department.
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