BSA 2103- COST ACCOUNTING AND CONTROL

1. C 14. D
2. C 15. A
3. D 16. A
4. C 17. B
5. B 18. A
6. D 19. B
7. A 20. B
8. B 21. C
9. B 22. C
10. B 23. D
11. B 24. A
12. B 25. C
13. A

26. D
Quantity Schedule Actual Work done EP. Materials Work Done EP. CC
In process, beg. --------------------------- 500
Started in process--------------------------2,000
2,500

Accounted for as follows-FIFO

In process, beg., F&T---------------------- 500 0 0 60% 300
Started, F&T (2,100-500)-----------------1,600 100% 1,600 100% 1,600
In process, ending-------------------------- 400 100% 400 25% 100
2,500 2,000 2,000 (d)
Accounted For as follows-Average
Finished and transferred------------------ 2,100 100% 2,100 100% 2,100
In process, ending-------------------------- 400 100% 400 25% 100
2,500 2,500 2,200 (d)
Materials – 100%

0 25% 40% EUP: Mat. 0 ; CC – 60% 100%

IP,beg. X X
IP, end
EUP: M = 100% ; CC - 25%
X X
The straight-line labeled under IP, beg. and IP, end represents the work done during the current
department/current period. It therefore represents the equivalent units of production.
 27. D

Quantity Schedule Actual Work Done Conversion Cost

In process, beginning 20,000

Started in process 340,000
360,000

Accounted for as follows- FIFO

In process , beg., F&T 20,000 40% 8,000

Started , F&T (320,000-20,000) 300,000 100% 300,000
In process, ending 40,000 40% 16,000
360,000 324,000 (d)

Accounted for as follows- Average

Finished and transferred 320,000 100% 320,000

In process, ending 40,000 40% 16,000
360,000 336,000 (d)

28. C
Given that there is no beginning work-in-process, it makes no difference whether FIFO or Average Method is
used. The equivalent works of units for April would be as follows:

Budgeted Sales 125,000

Add: Finished Goods, April 30 30,000

Units available to be sold 155,000

Less: Finished Goods, April 37,500

Units completed 117,500

Add: Equivalent units of production- Work in Process, April 30 (8,000x75%) 6,000

Total units placed in process 123,500

Less: EUP- Work in process, April 1 -

Total expected Equivalent units of prod. (EUP) 123,500 C.

 29. C
Quantity Schedule Work EP-
Actual Done CC
In process 6,000
Stated in process
(28,000-6,000) 22,000
28,000
Accounted for as follows:

Finished and
transferred 20,000 100% 20,000
In process, ending 8,000 40% 3,200
28,000 23,200

30. D
Work
Quantity Schedule Actual Done EP-Mat. Work Done EP. CC
In process 500
Stated in process 5,000
5,500
Accounted for as follows-FIFO:
In process, beginning, F&T 500 50% 250
Started, F&T (4,800-500) 4,300 100% 4,300 100% 4,300
In process, ending 700 100% 700 60% 420
5,500 5,000 4,970

Accounted for as follows- Average

Finished and transferred 4,800 100% 4,800 100% 4,800

In process, ending 700 100% 700 60% 420
5,500 5,500 5,220
Cost per Equivalent Unit:
FIFO: Materials CC Total

Cost added during September 25,100 34,280

Divided by: EUP 5,000 4,970
5.02 6.9 11.92 (d)
Average:

In process, beginning 2,400 2,260

Cost added during September 25,100 34,280

Total 27,500 36,540

Divided by: EUP 5,500 5,220
5 7 12 (d)

31. C
Work
Quantity Schedule Actual Done Conversion Cost

In process, beginning 500

Received from Prec. Dept. 6,700
7,200

Accounted for as follows- FIFO

In process , beg., F&T 500 40% 200

Received , F&T (6,800-500) 6,300 100% 6,300
In process, ending 400 50% 200
7,200 6,700

Accounted for as follows- Average

Finished and transferred 6,800 100% 6,800

In process, ending 400 50% 200
7,200 7,000

Conversion Cost per equivalent Unit:

FIFO(13,000+450)/6,700 2.01 c
Average(500+50+13,000+450)/7,000 2.00 c
 32. D
Work
Quantity Schedule Actual Done EP. CC

In process, beginning 1,400

Received from Cutting. Dept. 4,600
6,000

Accounted for as follows- FIFO

In process , beg., F&T 1,400 25% 350

Received , F&T (5,000-1,400) 3,600 100% 3,600
In process, ending 1,000 30% 300
6,000 4,250

Accounted for as follows- Average

Finished and transferred 5,000 100% 5,000

In process, ending 1,000 30% 300
6,000 5,300

Cost per equivalent Unit:

FIFO (17,526+35,052)/4,250 12.37 (d)

Average: (2,614+5,228+17,526+35,052) 11.40 (d)
5,300
` 33. D
Work EP. Work EP.
Quantity Schedule Actual Done Mat. Done CC
In process, beginning 1,000
Started in process 9,000
10,000

Accounted for as follows:

Finished and Transferred 9,200 100% 9,200 100% 9,200
In process, ending 800 75% 600 25% 200
10,000 9,800 9,400

Average cost per Equivalent Unit:

Materials: (4,120+44,880)/9,800 5
Conv. Cost:
(522+961+12,638+18,779)/9,400 3.5
8.5 (d)
34. A
Work Work
Quantity Schedule Actual Done EP. Mat. Done EP. CC

In process, beginning 1,000

Started in process 10,000
11,000

Accounted for as follows:

Finished and Transferred 9,600 100% 9,600 100% 9,600

In process, ending 1,400 100% 1,400 60% 840
11,000 11,000 10,440

Cost per Equivalent Unit:

Materials: (24,000+251,000)/11,000 25
Conv. Cost: (15,000+7,600+193,800+149,00)/10,440 35
60
Multiplied by: No. of completed units 9,600
576,000

35. C Refer to No. 34 for further computations.

Cost of In process, Sept. 30:
Materials: 25 x1,400------------------35,000
CC: 35 x 840----------------------------29,400
64,400 (C)
36. B
Direct Materials Conversion Cost
Completed and transferred out:
900 900
Work in process, ending:
150 112.5
Total equivalent units:
1,050 1,012.50
 37. (B) – 1,000,000+1,000,000=2,000,000
38. (D)- 180,000+1,000,000=1,180,000
1,180,000/1,050 units= 1,123.81
39. (A) 270,000+1,000,000 = 1,270,000
1,270,000/1,012.50 = 1,254.32
40. (c) (150 units × 75%) × 1,254.32 = 141,111
41. B
42. A
43. B
44. C
FLOW OF PRODUCTION ACTUAL UNITS CONVERSION TRANS.IN
WORK IN PROCESS BEGINNING 8,000
TRANSFERRED IN DURING PERIOD 32,000
TO ACCOUNT FOR 40,000
UNITS TRANSFERRED OUT 36,000 36,000 36,000
WORK IN PROCESS ENDING 4,000 1,200 4,000
ACCOUNTED FOR 40,000 37,200 (41) 40,000

COST TOTALS CONVERSION TRANS.IN

WORK IN PROCESS, BEGINNING 34,000 20,000 14,000
COST ADDED DURING THE PERIOD 138,000 38,000 100,000
TOTAL COST TO ACCOUNT FOR 172,000 58,000 114,000
DIVIDED BY EQUIVALENT UNITS 37,200 40,000
EQUIVALENT UNIT COST 4.41 1.56 (42) 2.85
ASSIGNMENT OF COST:

TRANSFERRED OUT (36,000x4.41) 158,760 (43)

WORK IN PROCESS ENDING:
TRANSFERRED IN COSTS (4,000x2.85) 11,400
CONVERSION (1,200x1.56) 1,872 13,272 (44)
COST ACCOUNTED FOR 172,032
45. D
46. D
47. C
48. B
49. C
50. D
NORMAL SPOILAGE = 6,000 + 24,000 – 18,000 – 10,000 = 2,000
STARTED AND COMPLETED = 18,000 – 6,000 = 12,000
FLOW OF PRODUCTION ACTUAL UNITS EUP MAT. EUP CC
WORK IN PROCESS BEGINNING 6,000
STARTED DURING PERIOD 24,000
TO ACCOUNT FOR 30,000

GOODS UNITS COMPLETED:

BEGINNING WORK IN PROCESS 6,000 4,000
STARTED AND COMPLETED 12,000 12,000 12,000
NORMAL SPOILAGE 2,000 2,000 2,000
WORK IN PROCES, ENDING 10,000 10,000 5,000
ACCOUNTED FOR 30,000 24,000 (45) 23,000 (46)
COST TOTALS DIRECT MATERIALS CONVERSION
WORK IN PROCESS, BEGINNING 5,000
COST ADDED DURING THE PERIOD 31,800 18,000 13,800
TOTAL COST TO ACCOUNT FOR 36,800 18,000 13,800
DIVIDED BY EQUIVALENT UNITS 24,000 23,000
EQUIVALENT UNIT COST 1.35(47) 0.75 0.60

ASSIGNMENT OF COST:
WORK IN PROCESS, BEGINNING 5,000
COMPLETION OF BEGINNING (4,000x.60) 2,400
TOTAL BEGINNING INVENTORY 7,400
STARTED AND COMEPLETED (12,000 x1.35) 16,200
NORMAL SPOILAGE (2,000x1.35) 2,700
TOTAL COST TRANSFERRED OUT 26,300 (48)

WORK IN PROCESS, ENDING

DIRECT MATERIALS (10,000x0.75) 7,500
CONVERSION (10,000x.60x.5) 3,000 10,500 (49)
COST ACCOUNTED FOR 36,800 (50)