I The company is processing a product in 4 departments A, B, C, and D as the last department. The following pertains for the production last April 2022. Department D Department E Department F Department A 20,000 25% IP Beg. Units Department B 10,000 30% Department C 10,000 10,000 10,000 40% 10,000 45% IP Beg. % 35% 50% US/UR 60,000 70,000 70,000 70,000 70,000 70,000 CTO 70,000 70,000 70,000 70,000 70,000 ? IP End Units 8,000 10,000 10,000 75% 8,000 30% 8,000 65% 8,000 35% IP End % 30% 50% IP Beg. Cost PD Cost P50,000 P50,000 P50,000 P50,000 P80,000 P50,000 P80,000 DM P80,000 P80,000 P80,000 P120,000 Conversion Cost P120,000 P120,000 ? P120,000 ? P80,000 P120,000 ? P120,000 ? PD Cost ? Current Cost DM P80,000 P120,000 P80,000 P120,000 P80,000 P120,000 P80,000 P120,000 2% of Good Units Conversion Cost P80,000 P120,000 2% of Good Units P80,000 P120,000 Normal Lost Units 2% of Good Units 2% of Good Units Increase in Units Method Average FIFO FIFO 100% at the End Material Application Average 50% Beginning; 50% End 100% at the Beginning 50% Beginning; 20% following inspection; 30% at the end 40% FIFO 30% Beginning; 50% following inspection; 20% at the end 40% 20% Average 100% at the beginning End Inspection 40% Beginning 40% 1) Compute for the following: Department A Department B Department C Department D Department E Department F Direct Material EUP Conversion Cost EUP Unit Cost (PD) Unit Cost (DM) Unit Cost (CC) Cost for CTO Cost for EUP FOHC 2) Prepare Cost of Production Report for Department A, D, and E Department G 10,000 55% ? ? 10,000 45% | P50,000 P80,000 P120,000 ? P80,000 P120,000 FIFO 50% following inspection; 50% at the End 40% Department G
I The company is processing a product in 4 departments A, B, C, and D as the last department. The following pertains for the production last April 2022. Department D Department E Department F Department A 20,000 25% IP Beg. Units Department B 10,000 30% Department C 10,000 10,000 10,000 40% 10,000 45% IP Beg. % 35% 50% US/UR 60,000 70,000 70,000 70,000 70,000 70,000 CTO 70,000 70,000 70,000 70,000 70,000 ? IP End Units 8,000 10,000 10,000 75% 8,000 30% 8,000 65% 8,000 35% IP End % 30% 50% IP Beg. Cost PD Cost P50,000 P50,000 P50,000 P50,000 P80,000 P50,000 P80,000 DM P80,000 P80,000 P80,000 P120,000 Conversion Cost P120,000 P120,000 ? P120,000 ? P80,000 P120,000 ? P120,000 ? PD Cost ? Current Cost DM P80,000 P120,000 P80,000 P120,000 P80,000 P120,000 P80,000 P120,000 2% of Good Units Conversion Cost P80,000 P120,000 2% of Good Units P80,000 P120,000 Normal Lost Units 2% of Good Units 2% of Good Units Increase in Units Method Average FIFO FIFO 100% at the End Material Application Average 50% Beginning; 50% End 100% at the Beginning 50% Beginning; 20% following inspection; 30% at the end 40% FIFO 30% Beginning; 50% following inspection; 20% at the end 40% 20% Average 100% at the beginning End Inspection 40% Beginning 40% 1) Compute for the following: Department A Department B Department C Department D Department E Department F Direct Material EUP Conversion Cost EUP Unit Cost (PD) Unit Cost (DM) Unit Cost (CC) Cost for CTO Cost for EUP FOHC 2) Prepare Cost of Production Report for Department A, D, and E Department G 10,000 55% ? ? 10,000 45% | P50,000 P80,000 P120,000 ? P80,000 P120,000 FIFO 50% following inspection; 50% at the End 40% Department G
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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please answer no. 2 cost of production report for A,D,E
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The company is processing a product in 4 departments A, B, C, and D as the last department. The following pertains for the production last April 2022.
Department E
Department F
Department A
20,000
Department B
10,000
30%
IP Beg. Units
Department C
10,000
35%
Department D
10,000
10,000
10,000
IP Beg. %
25%
40%
45%
50%
US/UR
60,000
70,000
70,000
70,000
70,000
70,000
CTO
70,000
70,000
70,000
70,000
70,000
?
IP End Units
8,000
10,000
10,000
75%
8,000
30%
8,000
65%
8,000
35%
IP End %
30%
50%
IP Beg. Cost
PD Cost
P50,000
P50,000
P50,000
P50,000
P50,000
DM
P80,000
P80,000
P80,000
P80,000
P80,000
P80,000
P120,000
Conversion Cost
P120,000
?
P120,000
?
P120,000
?
P120,000
?
P120,000
?
PD Cost
Current Cost
DM
P80,000
P80,000
P120,000
Conversion Cost
P80,000
P120,000
2% of Good Units
P120,000
P80,000
P120,000
2% of Good Units
P80,000
P120,000
P80,000
P120,000
2% of Good Units
Normal Lost Units
2% of Good Units
Increase in Units
Method
Average
FIFO
FIFO
100% at the End
20%
Average
100% at the
Material Application
100% at the
Beginning
Average
50% Beginning; 50%
End
Beginning
50% Beginning; 20%
following inspection;
30% at the end
40%
FIFO
30% Beginning; 50%
following inspection;
20% at the end
40%
beginning
End
Inspection
40%
40%
1) Compute for the following:
Department A
Department B
Department C
Department D
Department E
Department F
Direct Material EUP
Conversion Cost EUP
Unit Cost (PD)
Unit Cost (DM)
Unit Cost (CC)
Cost for CTO
Cost for EUP
FOHC
2) Prepare Cost of Production Report for Department A, D, and E
Department G
10,000
55%
?
?
10,000
45%
P50,000
P80,000
P120,000
?
P80,000
P120,000
FIFO
50% following
inspection; 50% at
the End
40%
Department G
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