Module 4

Problem 1

Colgate Palmolive Philippines Colgate Palmolive Philippines

Cost of Production Report
For the Month ended June 30, 2021 Cost of Production Report
For the Month ended June 30, 2021
Department 2 Department 2
Flow of units: Units Flow of units: Units
In process, beginning 3,600 IP, beginning 3,600
Transferred in 9,000 Transferred in 9,000
Units to account 12,600 Units to account 12,600
EUP (WA) EUP (FIFO)
Conversion
Units Materials Conversion
costs Finished and Transferred: Units Materials
costs
Finished and Transferred 10,200 10,200 10,200
In process, end 2,400 1,200 600 IP, beginning 3,600 1,440 2,400
Units as accounted 12,600 11,400 10,800 Started 6,600 6,600 6,600
In process, end 2,400 1,200 600
Total cost to account: Units as accounted 12,600 9,240 9,600
Costs of IP, beginning
Transferred in ₱ 12,330
Materials 4,050 Total cost to account:
CC 2,160 ₱18,540 Costs of IP, beg
Costs added during the Transferred in ₱ 12,330
period
Materials 4,050
Transferred in 8,460
Materials 14,784 Conversion costs 2,160 ₱ 18,540
CC 2,592 25,836 Costs added during the
₱44,376 period
Cost per EUP: Transferred in 8,460
Transferred in (₱ 12,330 + 8,460) / 12,600 ₱ 1.65
Materials 14,784
Materials (₱ 4,050 + 14,784) / 11,400 1.65
CC (₱ 2,160 + 2,592) / 10,800 0.44 Conversion costs 2,592 25,836
Total unit cost ₱ 3.74 ₱ 44,376
Cost per EUP:
Assignment of costs: Transferred in ₱ 8,460 / 9,000 ₱ 0.94
Finished and Transferred 10,200 x ₱ 3.74 ₱38,169 Materials ₱ 14,784 / 9,240 1.60
In process, end Conversion costs ₱ 2,592 / 9,600 0.27
Transferred in 2,400 x ₱ 1.65 3,960 Total unit cost ₱ 2.81
Materials 1,200 x ₱ 1.65 1,983
CC 600 x ₱ 0.44 264 Assignment of costs:
Total costs as accounted ₱44,376
Finished and Transferred

Costs of IP, beg ₱ 18,540

Costs to complete IP,
beginning
Materials 1,440 x ₱ 1.60 2,304
CC 2,400 x ₱ 0.27 648
Started 6,600 x ₱ 2.81 18,546
Total costs of F & T ₱40,038
In process, end
Transferred in 2,400 x ₱ 0.94 2,256
Materials 1,200 x ₱ 1.60 1,920
Conversion costs 600 x ₱ 0.27 162
Total costs as accounted ₱44,376

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 Colgate Palmolive Philippines Colgate Palmolive Philippines
Cost of Production Report Cost of Production Report
For the Month ended July 31, 2021 For the Month ended July 31, 2021
Department 2 Department 2
Flow of units: Units
Flow of units: Units
IP, beginning 2,400
In process, beginning 2,400 Transferred in 7,500
Transferred in 7,500 Units to account 9,900    
Units to account 9,900
  EUP (FIFO)
EUP (WA) Finished and
Units Materials CC Units Materials CC
Transferred
Finished and Transferred 7,200 7,200 7,200 IP, beginning 2,400 1,200 1,800
In process, end 2,700 900 450 Started 4,800 4,800 4,800
Units as accounted 9,900 8,100 7,650 In process, end 2,700 900 450
Units as accounted 9,900 6,900 7,050
Total cost to account:
Total cost to
Costs of IP, beginning
account:
Transferred in ₱ 3,960 Costs of IP, beg
Materials 1,983 Transferred in ₱ 2,256
Conversion costs 264 ₱ 6,207 Materials 1,920
Costs added during the period CC 162 ₱ 4,338
Transferred in 9,675 Costs added during the period  
Transferred in 9,675
Materials 11,730
Materials 11,730
Conversion costs 3,384 24,789 CC 3,384 24,789
₱30,996 ₱29,127
 
Cost per EUP:
Cost per EUP:
Transferred in (₱3,960+9,675)/9,900 ₱ 1.38 Transferred in ₱ 9,675 / 7,500 ₱ 1.29
Materials (₱1,983+11,730)/8,100 1.69 Materials ₱ 11,730 / 6,900 1.70
Conversion costs (₱264+3,384)/7,650 0.48 CC ₱ 3,384 / 7,050 0.48
Total unit cost ₱ 3.55 Total unit cost ₱ 3.47

Assignment of costs: Assignment of costs:

Finished and
Finished and Transferred 7,200 x ₱ 3.55 ₱25,539 Transferred
In process, end Costs of IP, beg ₱ 4,338
Transferred in 2,700 x ₱ 1.38 3,719 Costs to complete
Materials 900 x ₱ 1.69 1,524 IP, beginning
Conversion costs 450 x ₱ 0.48 215 Materials 1,200 x ₱ 1.70 2,040
Total costs as accounted ₱30,996 CC 1,800 x ₱ 0.48 864
Started 4,800 x ₱ 3.47 16,656
Total costs of F&T ₱23,898
In process, end
Transferred in 2,700 x ₱ 1.29 3,483
Materials 900 x ₱ 1.70 1,530
CC 450 x ₱ 0.48 216
Total costs as accounted ₱29,127

Note: Computed through MS Excel

Problem 2
Starlight Manufacturing Company
Cost of Production Report
For the Month ended August 31, 2021
Flow of Units: Units
In process, Aug 1 18,000
2
Started 61,800
Units to account 79,800
EUP
Finished and Transferred: Units Material X Material Y CC
In process, Aug 1 18,000 - - 4,500
Started and Completed 53,010 53,010 53,010 53,010
Spoiled 2,790 2,790 2,790 2,790
In process, Aug 31 6,000 6,000 - 1,500
Units as accounted 79,800 61,800 55,800 61,800

Total costs to account:

Costs in process, beginning
Material X 18,000 x 4 x ₱ 6 ₱ 432,000
Material Y 18,000 x 2 x ₱ 4 144,000
Conversion costs 18,000 x 75% x ₱ 8 108,000 ₱ 684,000
Costs added during the period
Material X 1,483,200
Material Y 446,400
Conversion costs 494,400 2,424,000
Total costs to account ₱ 3,108,000

Assignment of costs:
Costs in process, beginning ₱ 684,000

Material X 53,010 x 4 x ₱ 6 1,272,240

Material Y 53,010 x 2 x ₱ 4 424,080
Conversion costs 57,510 x ₱ 8 460,080
Costs of normal spoilage 66,960 + 22,320 + 22,320 111,600 2,268,000
Total costs of F & T ₱ 2,952,000
Costs in process, end
Material X 6,000 x 4 x ₱ 6 144,000
Conversion costs 1,500 x ₱ 8 12,000 156,000
Total costs as accounted ₱ 3,108,000

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 Module 5

Problem 1

Allocation of Joint Cost: Weighted Average Method

Weighted Units x Unit Allocated Joint

Joint Product No. of Units Points per unit Weighted Units
cost costs
A 1000 4 4000 5 P 20,000
B 2000 3 6000 5 30,000
C 3000 2 6000 5 30,000
D 4000 1 4000 5 20,000
Total 10,000 20,000 P 100,000

Weighted Average Unit Cost = P 100,000/ 20,000

Product C
3,000 units: P 30,000 2,500 units: P25,000

End balance: P 5,000

Allocation of Joint Cost: Sales Value Method

Additional Processing Approximately SV

Joint Product No. of Units SP per unit Total SV
costs at split off
A 1000 P 10 P 10,000 - P 10,000
B 2000 20 40,000 - 40,000
C 3000 20 60,000 - 60,000
D 4000 10 40,000 - 40,000
Total 10,000 P 150,000 - P 150,000

Cost ratio = 100,000/150,000 = 66.67%

Product C
3,000 units: P 40,000 2,500 units: P 33,333

End balance: P 6,667

Product Sales Value at SO Cost Ratio Allocated Joint costs

A P 10,000 66.67% P 6,667
B 40,000 66.67% 26,667
C 60,000 66.67% 40,000
D 40,000 66.67% 26,667
Total P 150,000 P 100,000

Note: Computed through MS Excel

Problem 2

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Sales Value at Split off point

Additional Processing Approximately SV

Product No. of Units SP per unit Total SV
costs at split off
Lucky Him 50,000 P 20 P 1,000,000 - P 1,000,000
Lucky Her 100,000 30 3,000,000 - 3,000,000
Total 150,000 P 4,000,000 - P 4,000,000

Cost Ratio = 1,200,000 / 4,000,000 = 30%

Product Sales Value at SO Cost Ratio Allocated Joint Costs

Lucky Him P 1,000,000 30% P 300,000
Lucky Her 3,000,000 30% 900,000
Total P 4,000,000 P 1,200,000

Sales P 4,000,000

Less: Allocated cost

Lucky Him P 300,000

Lucky Her 900,000 (1,200,000)

Gross Profit P 2,800,000

Sales value at further costs

Additional Processing Approximately SV

Product No. of Units SP per unit Total SV
costs at split off
Nissin 60,000 P 36 P 2.160,000 P 240,000 P 1,920,000
Ramen 120,000 50 6,000,000 840,000 5,160,000
Total 180,000 P 8,160,000 P 1,080,000 P 7,080,000

Cost ratio = 1,200,000 / 7,080,000 = 16.95%

Product Sales Value at SO Cost Ratio Allocated Joint Costs

Nissin P 1,920,000 16.95% P 325,424
Ramen 5,160,000 16.95% 874,576
Total P 7,080,000 P 1,200,000

Sales P 8,160,000

Less: Costs (2,280,000)

Gross Profit P 5,880,000

Note: Computed through MS Excel

Assessment Materials (Answers)

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 QUIZ 1

1. P 4,517,500 9. P 1,114,500 15. Raw and In process 12,000

2. P 6,098,625 10. P 988,000 Finished Goods 10,000
3. P 3,130,000 11. P 156,200 Cost of Goods Sold 2,000
4. P 3,330,000 12. P 41,700 16. Direct Materials P 46,000
5. P 945,000 13. P 3,160,000 Work In Process P 73,250
6. P 568,660 14. P 329,000 Finished Goods P 47,000
7. P 4,500 17. Raw and In Process 2,500
8. P 88,500 Cost of Goods Sold 1,500
Finished Goods 4,000
18. P 153,000

QUIZ 2

1-5

4TH WEEK
Overtime
Hours worked Rate per hour Basic Pay Night Premium Total
Premium
Tibo 40 P 60 P 2,400 P 2,400
Jason 47 60 2,820 P 42 2,862
Willie 44 60 2,640 24 2,664
Rica 40 60 2,400 2,400
Princess 43 60 2,580 18 2,598
Kathy 46 60 2,760 36 2,796
Bianca 40 60 2,400 P 240 2,640
Toni 44 60 2,640 24 264 2,928
Yeng 44 60 2,640 24 264 2,928
Name of Total
Gross Pay Pag-ibig PhilHealth SSS WHT Net Pay
Workers Deductions
Tibo P 12,645 P 100 P 347.74 P 500 0.00 P 947.74 P 11, 697.26
Jason 12,812 100 352.33 520 0.00 972.33 11,839.67
Willie 14,614 100 401.89 580 0.00 1,081.89 13,532.11
Rica 13,572 100 373.23 540 0.00 1,013.23 12,558.77
Princess 13,338 100 366.80 540 0.00 1,006.80 12,331.20
Kathy 10,851 100 298.40 440 0.00 838.40 10,012.60
Bianca 13,272.60 100 365.00 540 0.00 1,005.00 12,267.60
Toni 13,560.60 100 372.92 540 0.00 1,012.92 12,547.68
Yeng 13,560.60 100 372.92 540 0.00 1,012.92 12,547.68
Total P 118,225.80 P 900 P 3,251.23 P 4,740 - P 8,891.23 P 109,334.57

Factory Payroll 118,225.80 6. P 21,090,200 14. P 660,480

Pag-ibig Payable 900.00 7. P 16,559,520 15. P 627,168
PhilHealth Payable 3,251.23 8. 113,100 DLH 16. P 70.60
SSS Payable 4,740.00 9. P 70.60 17. P 840,000
Cash 109,334.57 10. P 1,775,000 18. P 341,000
11. P 532,500 19. P 16,000
Manufacturing Overhead 8,891.23 12. P 341,000 20. P 29,275.50
Pag-ibig Payable 900.00 13. P 840,000
PhilHealth Payable 3,251.23
SSS Payable 4,740.00

QUIZ 3

1. P 1,216.58 / good pair 8. Manufacturing Overhead 40,300 10.Loss from spoilage 4,500
2. P 1,089,116/unit Materials 5,300 Materials 500
3. P 1,631,250 Factory Payroll 14,000 Factory Payroll 1,600
4. P 484,975 Overhead 21,000 Overhead 2,400
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5. P 162,630,000 9. Work In Process 26,600 11. P 574,600
6. P 2,016,000 Materials 6,600 12. P 4,010,100
7. P 369,600 Factory Payroll 8,000 13. P 3,930,100
Overhead 12,000 14. P 390,000
Manufacturing Overhead 4,500 15. Traditional - P 2.5/unit
Materials 500 ABC – P 0.5/unit
Factory Payroll 1,600
Overhead 2,400
Finished Goods 31,100
Work In Process 31,100

QUIZ 4

1. P 1,201,900 8. Direct Materials: 371,000 12. Material A: 20,000 WA Method:

2. 11,900 units Packaging: 400,000 Material B: 19,800 Materials: 39,000
3. P 176,120 Direct Labor: 393,800 13. P 237,717 CC: 37,125
4. P 1,100,000 Overhead: 389,500 14. P 2,089,358 16. Materials: 58,800
5. Materials: 235,750 9. Materials: 160,000 15. FIFO Method: CC: 60,600
Conversion costs: 239,900 Conversion costs: 190,000 Materials: 32,000 17. Materials: 435,500
6. P 2,546,409 10. P 901,420 CC: 34,325 CC: 459,600
7. P 2,327,400 11. P 23,580 18. P 12,935,237

QUIZ 5

1. Shirt: P 69,000 5. P 1,200 12. P 990,000

Pants: P 24,000 6. P 37,850 13. P 1,601,000
2. Product A: P 201,320 7. P 15,000 14. P 624,091
Product C: P 383,400 8. P 15,000 15. Alpha 1: P 240,000
3. A: P 15,800 9. Milky: P 57 Alpha 2: P 72,000
B: P 31,600 Cheese: P 143 16. P 2.39 per unit
C: P 29,316 10. P 79,000 17. P 38,000
4. P 26,400 11. P 521,591 18. P 181, 500

QUIZ 6

Problem 1

Sunflower Manufacturing Company

Cost of Production Report
For the month of October
Fabricating Department
Flow of units: Units
In process, beginning 400
Started 1,200
Units to account 1,600
  EUP
Finished and Transferred:   Materials Labor Overhead
In process, beg 400 - 240 240
Started 700 700 700 700
Total 1,100
In process, end 500 500 400 400
Units as accounted 1,600 1,200 1,340 1,340

Total costs to account:

Costs of IP, beginning
Materials ₱ 29,280.00
Labor 1,900
Overhead 11,800 ₱ 42,980

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Costs added during the period:
Materials 90,000
Labor 16,240
Overhead 46,740 152,980
Total costs to account ₱ 195,960

Cost per EUP:

Materials ₱ 90,000 / 1,200 ₱ 75.00
Labor ₱ 16,240 / 1,340 12.12
Overhead ₱ 46,740 / 1,340 34.88
Total unit cost ₱ 122.00

Assignment of costs:
Finished and Transferred;
Costs in beginning ₱ 42,980
Cost to complete in BI 240 x (₱ 12.12 + 34.88) 11,280
Started and Completed 700 x ₱ 122 85,400 96,680
Total costs of finished and transferred ₱ 139,660
In process, end
Materials 500 x ₱ 75 37,500
Labor 400 x ₱ 12.12 4,848
Overhead 400 x ₱ 34.88 13,952 56,300
Total costs as accounted ₱ 195,960
Finishing Department
Flow of units: Units
In process, beginning 600
Transferred in 1,100
Units to account 1,700
EUP
Finished and Transferred:   Materials Labor Overhead
In process, beginning 600 360 480 480
Started 700 700 700 700
Total 1,300
In process, end 400 200 240 240
Units as accounted 1,700 1,260 1,420 1,420
Total costs to account:
Costs in beginning inventory:
Transferred in ₱ 74,000
Materials 230
Labor 1,600
Overhead 2,520 ₱ 78,350
Costs added during the period:
Materials 3,150
Labor 19,880
Overhead 29,820
Transferred in 139,660 192,510
Total costs to account ₱ 270,860
Costs per EUP:
Materials ₱ 2.50
Labor 14.00
Overhead 21.00
Transferred in 126.96
Total unit cost ₱ 164.46
Assignment of costs:
Finished and Transferred;
Costs in beginning ₱ 78,350
Cost to complete in process ,beg
Materials 360 x ₱ 2.50 900
Labor 480 x ₱ 14 6,720
Overhead 480 x ₱ 21 10,080

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 Started 700 x ₱ 164.46 115,125 132,825
Total costs of finished and transferred ₱ 211,175
In process, end
Materials 500
Labor 3,360
Overhead 5,040
Transferred in 50,785 59,685
Total costs as accounted ₱ 270,860

Note: Computed through MS Excel

Problem 2:

1. P 2,695,550
2. P 2,592,150
3. Transferred in: P 16.20
Conversion costs: P 7.10
4. P 3,591,300

Problem 3

Constant Margin
Units of output Weighted Method Relative Sales Value Net Realizable Value
Approach
NB1: P 8.75 NB1: P 6.16 NB1: P 7.71 NB1: P 7.54 NB1: P 7.67
NB2: P 10.75 NB2: P 11.24 NB2: P 6.82 NB2: P 6.19 NB2: P 7.19
NB3: P 8.75 NB3: P 12.32 NB3: P 11.56 NB3: P 12.01 NB3: P 11.50

Problem 4

Gross Profit: P 37,850

Problem 5 Labor Efficiency Variance: P 2,500 - Unfavorable

Material Price Variance: P 3,600 - Favorable Factory Overhead Variance: P 47,500 - Favorable

Material Quantity Variance: P 1,500 - Favorable Problem 6

Labor Rate Variance: P 11,550 - Favorable Material Price Variance: P 47,500 – Favorable

9
Material Usage Variance: P 2,585 – Favorable Labor Efficiency Variance: P 56,000 - Favorable

Labor Rate Variance: P 352,000 – Unfavorable

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