LA CONSOLACION COLLEGE MANILA

Sta. Mesa, Manila

COST ACCOUNTING AND COST MANAGEMENT

Quiz on Process Costing
March 2017

NAME: _____________________________________________ SCORE: __________________

Instructions:
1. Supply the answers. No erasures on final answers.
2. Solutions on worksheet. No solution, no credit.

Crom Inc has a process cost sytem. All materials are added if the process is 30% complete in
Department One. The following information is available for the month of January.

Units
Work in process, 8/1 1,000
(25% complete as to conversion cost)
Started in August 3,000
Transferred to Department Two during August ?
Work in process, 8/31
(40% complete as to conversion cost) 1,200

1. Using FIFO method, EUP for DM is _________________

2. Using FIFO method, EUP for CC is _________________
3. Using WA method, EUP for CC is _________________
4. Using WA method, EUP for DM is _________________

Department II of Tanya-Dimer Manufacturing Company presents the following production data

for the month of January: (All costs are added uniformly throughout the process)
Units
Opening inventory (5/8 completed) 4,000
Started in process 15,000
Transferred out 12,000
Closing inventory
1/3 completed 4,200
3/5 completed 2,800

5. Using FIFO method, EUP for DM is _________________

6. Using FIFO method, EUP for CC is _________________
7. Using WA method, EUP for DM is _________________
8. Using WA method, EUP for CC is _________________

ABC Corporation operates two departments. In Department 2, materials are applied upon 50%
completion of the process. Below are the information gathered from the production department for the
month ended February 28. 2017.

Units Cost
WIP, 2/1/17, 60% complete 10,000
Direct Materials P 21,320
Conversion Cost 33,168
From preceding department 39,500
Added this period 90,000
Direct Materials P 173,160
Conversion Cost 197,904
From preceding department 310,500
WIP, 2/28/17, 40% complete 12,000
 9. Using WA method, the total cost to account is _______________________
10. Using WA, method, the unit cost of completed units is _______________________
11. Using WA, method, the cost assigned to WIP, end is _______________________
12. Using FIFO method, the total cost to account is _______________________
13. Using FIFO method, the total cost to complete beg inventory is _______________________
14. Using FIFO method, the cost assigned to work in process, end is _______________________

On February 1, 2017, the Zatarain Company had 6,000 units of WIP in Department B, the second
and last stage of their production cycle. The costs attached to these 6,000 units were P18,220 of costs
transferred-in from Department A, P2,000 of material cost added in Department B and P10,440 of
conversion cost added in Department B. Materials are added the process is 50% complete in Department
B. Conversion costs was 40% complete on February 1. During February, 14,000 units were transferred-in
from Department A at a cost of P31,780; and material costs of P40,000 and conversion costs of P32,760
were added in Department B. On February 28, Department B had 5,000 units of WIP that were 60%
complete as to conversion costs.

Using FIFO method,

15. What is the total cost per EUP ___________________
16. The total cost of transferred out is ___________________
17. The total cost of ending WIP ___________________

Using WA method,
18. What is the total cost per EUP ___________________
19. The total cost of transferred out is ___________________
20. The total cost of ending WIP ___________________

Mendoza Corp manufactures only one product in which raw materials must pass through
processes A, B and C, in that order, before completion.

Inventories of Process C and of Finished Goods on August 1 were as follows:

Process C 1,200 units, 2/3 completed, T-in cost P2,840 and CC of P1,750
Finished goods 1,000 units at P3 per unit

During August, the following transactions were completed:

2,000 units with a value of P5,000 were transferred from Process B
Direct labor applied to Process C during August was P3,100
Overhead costs for August applied to Process C were P3,200

Inventories on August 31 were as follows:

Process C 600 units, 1/2 completed
Finished goods 1,300 units

21. Using WA method, the value of WIP on August 31 is __________________________

22. Using FIFO method, the total cost of completed and transferred units on August 31 is
__________________________

Rosalyn Division of Rosal Paint produces environmental paints in which spoilage takes place on
a continual basis. Management considers normal spoilage to be 1% or less of total gallons of materials
placed into production this period. The following operating statistics are available for August.

Gallons Cost
Work in process, 8/1 10,000
(30% complete as to materials) P 21,950
(40% complete as to conversion cost) 59,870
Started during August 150,000
Materials 322,350
Labor 489,280
Work in process, 8/31 4,000
(50% complete as materials)
(60% complete as to conversion cost)
Spoiled 2,400
 Using FIFO method:
23. EUP for CC is _________________________
24. Total Cost to account is _________________________
25. Unit cost of finished and transferred units _________________________

Using WA method:
26. EUP for materials is _________________________
27. Cost of completed units _________________________
28. The amount of loss charged to period cost _________________________

Rommel Division of Rosal Paint produces environmental paints. Materials are added at the end
of the process. Management considers normal spoilage to be 5% or less of total gallons of materials placed
into production. Inspection is done when the process is 70% complete. The following operating statistics
are available for August.
Gallons Cost
Work in process, 8/1, 45% 4,000
Materials -
Conversion Cost P 5,760
Started during August 20,000
Materials 84,000
Conversion Cost 65,920
Work in process, 8/31, 75% 4,000
Spoiled 2,000

Using FIFO method:

29. EUP for CC is _________________________
30. Cost of finished and transferred units _________________________
31. The amount of loss charged to period cost _________________________

Using WA method:
32. EUP for materials is _________________________
33. Cost of units still in process on 8/31 _________________________
34. The amount of loss absorbed by completed units _________________________

Redeemer Division of Rosal Paint produces environmental paints. Materials are added at the
beginning of the process. Management considers normal spoilage to be 2% or less of total gallons of
materials placed into production this period. Inspection is done when the process is 30% complete. The
following operating statistics are available for August.
Gallons Cost
Work in process, 8/1, 20% 4,000
Materials P22,000
Conversion Cost 10,025
Started during August 26,000
Materials 104,000
Conversion Cost 70,675
Work in process, 8/31, 40% 4,000
Spoiled 1,000

Using FIFO method:

35. EUP for CC is _________________________
36. Cost of finished and transferred units _________________________
37. The amount of loss charged to WIP, end _________________________

Using WA method:
38. EUP for materials is _________________________
39. Cost of units still in process on 8/31 _________________________
40. The amount of loss absorbed by F&T units _________________________

The production records of Department 1 of Jeff-Ian Company for the month of August are
provided as follows:
 Materials are added at the beginning of the process. Eighty percent of all units put into process
were completed and transferred to Department 2. Lost units are discovered at inspection point when the
process is 75% complete. The management expects this to be 5% of completed units or less.

41. Using FIFO method, EUP for materials is ___________________________

42. Using WA method, EUP for CC is ___________________________
43. Using WA method, the cost of completed units is ___________________________

Locre Inc. is operating three departments. The production records of Department 2 for the month
of July 2015 are shown below:

All materials are added when the process is 60% complete. During inspection (upon 40%
completion), the company expects about 10% of all units put into process to be lost. The balance is
charged immediately to income statement.

44. Using FIFO method, EUP for CC is ____________________________

45. Using WA method, the cost of finished and transferred units is ____________________________

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