June Maylyn D.
Marzo
BSAIS 2nd year
Assignment 7.2 Process Costing
Problem no. 1
AVERAGE METHOD
Equivalent Production Inputs: Materials Conversion Cost
Beginning Inventory 10,000
Unit Started 120,000
Total 130,000
Outputs
Completed 121,800 121,800 121,800
In Process End 8,200 8,200 6,560
Total 130,000 128,360
Cost to be to department
Materials: (24,500 + 75,600) = 100,100/130,000 = 0.77
Cost Conversion: (68,105 + 130,053) = 198,158/128,360 = 1.55
Total: 299,053
Cost Completed and transferred: 121,800 × 2.32= 282,576
FIFO METHOD
Equivalent Production Inputs: Materials Conversion
130,000
Beginning Inventory:10,000 0 4,500
Unit Started 111,800 111,800 111,800
Ending Inventory 8,200 8,200 6,560
Total: 120,000 122,860
Cost to be added to department
Materials: 75,600/120,000 = 0.63
Cost Conversion: 130,053/122,860 = 1.05
1. How many units must be accounted for?
A.118,200
B.128,200
C.130,000
D.138,200
2. What is the total cost to account for?
a.P93,405
b.P205,653
c.P205,653
d.P299,058
3. How many units were started and completed in the period?
a.111,800
b.120,000
c.121,800
d.130,000
4. What are the equivalent units for material using the weighted average method?
a.120,000
b.123,860
c.128,360
June Maylyn D. Marzo
BSAIS 2nd year
Assignment 7.2 Process Costing
d.130,000
5. What are the equivalent units for material using the FIFO method?
a.111,800
b.120,000
c.125,500
d.130,000
6. What are the equivalent units for the conversion using the weighted average method?
a.120,000
b.123,440
c.128,360
d.130,000
7. What are the equivalent units for conversion using the FIFO method?
a.118,360
b.122,860
c.123,860
d.128,360
8. What is the material cost per equivalent unit using the weighted average method?
a.P.58
b.P.62
c.P.77
d.P.82
9. What is the conversion cost per equivalent unit using the weighted average method?
a.P1.01
b.P1.05
c.P1.55
d.P1.61
10. What is the cost of units completed using the weighted average?
a.P237,510
b. P266,742
c.P278,400
d.P282,576
11. What is the conversion cost per equivalent unit using FIFO method?
a.P1.05
b.P.95
c.P1.61
d.P1.55
12. What is the cost of all units transferred out using FIFO method?
a.P204,642
b.P191,289
c.P287,004
d.P298,029
AVERAGE METHOD
Equivalent Production Inputs: Materials Conversion Cost
Beginning Inventory: 500
Unit Started: 6,500
Total: 7,000
Outputs:
Completed: 4,900 4,900 4,900
In Process End 2,100 2,100 1,050
Total 7,000 5,950
Problem no. 2
June Maylyn D. Marzo
BSAIS 2nd year
Assignment 7.2 Process Costing
13. Compute the number of equivalent units in forming for material and conversion.
A.5,950; 5,950
B.5,950;7,000
C.7,000;5,950
D.7,000;7,000
14. How many units were transferred to Decorating during the month?
A.600
B.4,900
C.5,950
D.7,000
15. What was the cost transferred out of Forming during the month?
A.P5,341
B.P6,419
C.P8,245
D.P8,330
16. What is the cost of ending work in the process in the forming departments?
A.P2,451
B.P2,415
C.P2,541
D.P2,514
17. Compute the number of equivalent units as to costs in Decorating for the transferred-
in cost component.
A.4,400
B.4,600
C.4,900
D.5,500
18. Compute the number of equivalent units in Decorating for material
A.4,870
B.4,885
C.5,350
D.5,425
19. Compute the number of equivalent units in Decorating for material
A.4,870
B.4,885
C.5,350
D.5,425
20. What is the material cost per equivalent unit in Decorating?
A.P8.50
B.P8.54
C.P8.80
D.P9.39
21. What is the cost of completing the units in beginning inventory in Decorating?
A.P960
B.P1,380
C.P1,740
D.P11,940
22. What is the amount of Transferred out cost in beginning inventory in Decorating?
A.P1,560
B.P1,740
C.P11,700
D.P13,440
June Maylyn D. Marzo
BSAIS 2nd year
Assignment 7.2 Process Costing
23. What is the amount of Transferred out cost to the finished goods inventory?
A.P102,120
B.P115,560
C.P120,405
D.P125,440
24. What is the amount of Ending work in process cost in decorating?
A.P4,485
B.P5,485
C.P5,750
