Problem 2. Cena company employs Weighted Average process costing system in the assembly departmentand FIFO process costing system in the finishing department concerning its only product whichundergoes production in assembly department and finishing department. The following data for the yearended December 31, 2020 are provided:ASSEMBLY DEPARTMENTUnits100,000 units - 40% completed Cost of Direct material – P3Mas to conversion costCostJanuary 1, 2020Cost of Direct labor – P5MCost of Factory Overhead – P2MDecember 31, 2020150,000 units - 80% completed ?as to conversion cost400,000 unitsUnits started during the yearDM cost added during 2020P12MDL cost added during 2020P15MFOH cost added during 2020P13MFINISHING DEPARTMENTUnits50,000 units - 70% incomplete Cost of Transferred in – P10Mconversion costCostJanuary 1, 2020Cost of Direct material – P6MCost of Direct labor – P1MCost of Factory Overhead – P3M30,000 units - 10% incomplete ?as to conversion costDecember 31, 2020Units started during the yearDM cost added during 2020РЗОМDL cost added during 2020 -P40MFOH cost added during 2020P10M Additional information for the year:a. It is the company's policy to add conversion cost evenly throughout the period in the twodepartments.b. It is the company's policy to add all direct materials in the assembly department at the start ofthe process while all direct materials in the finishing department are added at the end of theprocess.c. There is no spoilage in both departments.1. In the assembly department, what is the cost of goods manufactured or cost assigned to unitscompleted for the year ended December 31, 2020?a. 36,564,500b. 26,117,500c. 36,451,200d. 35,523,8002. In the assembly department, what is the cost assigned to December 31, 2020 work-in-processinventory?a. 13,436,400 b. 11,236,600c. 13,548,800d. 14,476,2003. In the finishing department, what is the cost of goods manufactured or cost assigned to unitscompleted for the year ended December 31, 2020?a. 129,895,950b. 125,716,750c. 131,285,400d. 128,452,1004. In the finishing department, what is the cost assigned to December 31, 2020 work-in-processinventory?а. 6,668,130b. 6,276,330c. 6,401,800d. 9,235,100

Answered: OSt 00,000 units – 40% completed Cost s…

OSt 00,000 units – 40% completed Cost s to conversion cost Cost Cost 50,000 units - 80% completed ? s to conversion cost 00,000 units DM P12 DL

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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Question

Problem 2. Cena company employs Weighted Average process costing system in the assembly department
and FIFO process costing system in the finishing department concerning its only product which
undergoes production in assembly department and finishing department. The following data for the year
ended December 31, 2020 are provided:
ASSEMBLY DEPARTMENT
Units
100,000 units - 40% completed Cost of Direct material – P3M
as to conversion cost
Cost
January 1, 2020
Cost of Direct labor – P5M
Cost of Factory Overhead – P2M
December 31, 2020
150,000 units - 80% completed ?
as to conversion cost
400,000 units
Units started during the year
DM cost added during 2020
P12M
DL cost added during 2020
P15M
FOH cost added during 2020
P13M
FINISHING DEPARTMENT
Units
50,000 units - 70% incomplete Cost of Transferred in – P10M
conversion cost
Cost
January 1, 2020
Cost of Direct material – P6M
Cost of Direct labor – P1M
Cost of Factory Overhead – P3M
30,000 units - 10% incomplete ?
as to conversion cost
December 31, 2020
Units started during the year
DM cost added during 2020
РЗОМ
DL cost added during 2020 -
P40M
FOH cost added during 2020
P10M

Additional information for the year:
a. It is the company's policy to add conversion cost evenly throughout the period in the two
departments.
b. It is the company's policy to add all direct materials in the assembly department at the start of
the process while all direct materials in the finishing department are added at the end of the
process.
c. There is no spoilage in both departments.
1. In the assembly department, what is the cost of goods manufactured or cost assigned to units
completed for the year ended December 31, 2020?
a. 36,564,500b. 26,117,500
c. 36,451,200
d. 35,523,800
2. In the assembly department, what is the cost assigned to December 31, 2020 work-in-process
inventory?
a. 13,436,400 b. 11,236,600
c. 13,548,800
d. 14,476,200
3. In the finishing department, what is the cost of goods manufactured or cost assigned to units
completed for the year ended December 31, 2020?
a. 129,895,950
b. 125,716,750
c. 131,285,400
d. 128,452,100
4. In the finishing department, what is the cost assigned to December 31, 2020 work-in-process
inventory?
а. 6,668,130
b. 6,276,330
c. 6,401,800
d. 9,235,100

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