From the accounting records of the REPEAT COMPANY, you gathered the following information related to work in process and finished goods inventory: Units Cost In process, Dec. 1, 2021: Lot A (1/4 complete) Lot B (1/3 complete) Lot C (1/2 complete) Cost of raw materials, direct labor & overhead in Dec., 2021 9,000 15,000 16,000 P81,000 150,000 192,000 362,500 30,000 25,000 40,000 4,000 1,000 Started in process Finished & transferred to warehouse In process, Dec. 31 (60% completed) Normal lost units * Abnormal lost units* *Both are discovered by quality control as "lost" when 50% completed. REQUIRED: Using FIFO procedures, compute for the correct amounts for the following: (Round unit cost up to five decimal places; totals to the nearest peso. Transfer final answers to the answer sheet. Erasures and alterations are not allowed in the answer sheet. Submit supporting computations to get credit.) A. Equivalent production related to 1. Finished and transferred 2. In process, Dec. 31 3. Normal lost 4. Abnormal lost 5. Total Dec. equivalent production В. Costs 6. Total cost of normal lost units 7. Number of December inspected good units to absorb no. 6 8. Cost allocated to finished and transferred 9. Cost allocated to in process, Dec. 31 10. Cost allocated to abnormal lost
From the accounting records of the REPEAT COMPANY, you gathered the following information related to work in process and finished goods inventory: Units Cost In process, Dec. 1, 2021: Lot A (1/4 complete) Lot B (1/3 complete) Lot C (1/2 complete) Cost of raw materials, direct labor & overhead in Dec., 2021 9,000 15,000 16,000 P81,000 150,000 192,000 362,500 30,000 25,000 40,000 4,000 1,000 Started in process Finished & transferred to warehouse In process, Dec. 31 (60% completed) Normal lost units * Abnormal lost units* *Both are discovered by quality control as "lost" when 50% completed. REQUIRED: Using FIFO procedures, compute for the correct amounts for the following: (Round unit cost up to five decimal places; totals to the nearest peso. Transfer final answers to the answer sheet. Erasures and alterations are not allowed in the answer sheet. Submit supporting computations to get credit.) A. Equivalent production related to 1. Finished and transferred 2. In process, Dec. 31 3. Normal lost 4. Abnormal lost 5. Total Dec. equivalent production В. Costs 6. Total cost of normal lost units 7. Number of December inspected good units to absorb no. 6 8. Cost allocated to finished and transferred 9. Cost allocated to in process, Dec. 31 10. Cost allocated to abnormal lost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:From the accounting records of the REPEAT COMPANY, you gathered the
following information related to work in process and finished goods inventory:
Units
Cost
In process, Dec. 1, 2021:
Lot A (1/4 complete)
Lot B (1/3 complete)
Lot C (1/2 complete)
Cost of raw materials, direct labor
& overhead in Dec., 2021
9,000
15,000
16,000
P81,000
150,000
192,000
362,500
Started in process
30,000
25,000
40,000
4,000
1,000
Finished & transferred to warehouse
In process, Dec. 31 (60% completed)
Normal lost units *
Abnormal lost units*
*Both are discovered by quality control as "losť" when 50% completed.
REQUIRED: Using FIFO procedures, compute for the correct amounts for the following:
(Round unit cost up to five decimal places; totals to the nearest peso. Transfer final answers
to the answer sheet. Erasures and alterations are not allowed in the answer sheet. Submit
supporting computations to get credit.)
A. Equivalent production related to
1. Finished and transferred
2. In process, Dec. 31
3. Normal lost
4. Abnormal lost
5. Total Dec. equivalent production
B. Costs
6. Total cost of normal lost units
7. Number of December inspected good units to absorb no. 6
8. Cost allocated to finished and transferred
9. Cost allocated to in process, Dec. 31
10. Cost allocated to abnormal lost
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