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 Cost January 1, 2020 December 31, 2020 January 1, 2020 December 31, 2020 100,000 units – 40% completed as to conversion cost Cost of Direct material – P3M Cost of Direct labor – P5M Cost of Factory Overhead – P2M 150,000 units – 80% completed ? as to conversion cost FINISHING DEPARTMENT Units Cost Units started during the year 400,000 units DM cost added during 2020 – P12M DL cost added during 2020 – P15M FOH cost added during 2020 – P13M 50,000 units – 70% incomplete conversion cost Cost of Transferred in – P10M Cost of Direct material – P6M Cost of Direct labor – P1M Cost of Factory Overhead – P3M 30,000 units – 10% incomplete ? as to conversion cost Units started during the year DM cost added during 2020 – P30M 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? a. 6,668,130 b. 6,276,330 c. 6,401,800 d. 9,235,100
Problem 2. Cena company employs Weighted Average
ASSEMBLY DEPARTMENT
Units Cost
January 1, 2020 December 31, 2020
January 1, 2020
December 31, 2020
100,000 units – 40% completed as to conversion cost
Cost of Direct material – P3M Cost of Direct labor – P5M
Cost of Factory
150,000 units – 80% completed ? as to conversion cost
FINISHING DEPARTMENT
Units Cost
Units started during the year
400,000 units
DM cost added during 2020 – P12M
DL cost added during 2020 – P15M
FOH cost added during 2020 – P13M
50,000 units – 70% incomplete conversion cost
Cost of Transferred in – P10M Cost of Direct material – P6M Cost of Direct labor – P1M
Cost of Factory Overhead – P3M
30,000 units – 10% incomplete ? as to conversion cost
Units started during the year
DM cost added during 2020 – P30M
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
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?
a. 6,668,130 b. 6,276,330 c. 6,401,800 d. 9,235,100
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