Garcia, Phoebe Stephane C.

Cost Accounting
BS Accountancy 1-A

CHAPTER 10: Process Costing

True or False
1. T 6. F 11. F
2. T 7. T 12. T
3. F 8. F 13. T
4. F 9. T 14. F
5. T 10. F 15. T

Problem 01
Work Done EUP

a. Units completed 10,000 100% 10,000

Units IP, end 5,000 ½ 2,500
15,000 12,500

b. Units completed 26,000 100% 26,000

Units IP, end 8,000 ¾ 6,000
34,000 32,000

c. Units completed 12,000 100% 12,000

Units IP, end 2,000 ¾ 1,500
24,000 13,500

d. Units completed 20,000 100% 20,000

Units IP, end 6,000 ½ 3, 000
4,000 ¾ 3,000
30,000 26,000

e. Units completed 45,000 100% 45,000

Units IP, end 2,000 1/5 400
3,000 ¾ 2,250
50,000 47,650

Problem 02
1. Units started 11,000
Work Done EUP
Units completed 9,000 100% 9,000
Units IP, end 2,000 ¾ 1,500
11,000 10,500

Materials Labor Overhead

2. Cost incurred 15,750 40,950 25,200
EUP 10,500 10,500 10,500
P 1.50 P 3.90 P 2.40
Problem 03

Case 1 Materials Conversion

Units WD EUP WD EUP
Started 10,000
Completed 8,000 100% 8,000 100% 8,000
In process, end 2,000 100% 2,000 ¾ 1,500
10,000 10,000 9,500

Case 2 Materials Conversion

Units WD EUP WD EUP
Received 40,000
Completed 34,000 100% 34,000 100% 34,000
In process, end 6,000 - - ¼ 4,500
40,000 34,000 38,500

Case 3 Materials Conversion

Units WD EUP WD EUP
Started 40,000
Completed 34,000 100% 34,000 100% 34,000
In process, end 3,000 75% 2,250 1/3 1,000
3,000 75% 2,250 1/5 600
40,000 36,250 35,600

Problem 04
1) Materials Conversion
Units started 12,000 WD EUP WD EUP
Completed 10,500 100% 10,500 100% 10,500
In process, end 1,500 50% 750 2/5 600
12,000 11,250 11,100

Unit cost
Materials (M)= 72,000/11,250 = P 6.40
Conversion cost (CC)= 133,200/ 11,100 = P 12.00
(Completed and transferred= P 6.40 + 12.00= 18.40)

2) Completed and transferred (10,500 x 18.4) 193,200

3)In process, end

Materials (750 x 6.40) 4,800
Conversion cost (600x 12.0) 7,200
12,000

Problem 05
ABM Company
 Cost of Production Report
For the Month Ended January 31, 2020
Department 1 Department 2
Materials Conversion Materials Conversion
A WD EUP WD EUP A WD EUP WD EUP
Stared/received 60,000 40,000
Completed 40,000 100 40,00 100% 40,00 30,000 100 30,00 100% 30,000
% 0 0 % 0
In process, end 20,000 100 20,00 75% 15,00 10,000 50% 5,000 80% 8,000
% 0 0
60,000 60,00 55,00 40,000 35,00 38,000
0 0 0

Cost charged to the department

Cost charged to the preceding dept. 720,000 18
Cost added in the dept
Materials 480,000 8.00 245,000 7.00
Labor 330,000 6.00 190,000 5.00
Overhead 220,000 4.00 114,000 3.00
Total costs added 1,030,000 18.00 549,000 15.00
Total costs 1,030,000 18.00 1,269,000 33.00

Total costs accounted for as follows Department 1 Department 2

Completed and transferred (40,000 x 18) 720,000 (30,000 x 33) 990,000
In process, end
Cost from preceding dept. (10,000 x 18) 180,000
Materials (20,000 x 8) 160,000 (5,000 x 7) 35,000
Labor (15,000 x 6) 90,000 (8,000 x 5) 40,000
Overhead (15,000 x 4) 60,000 310,000 (8,000 x 3) 24,000 279,000
Total cost as accounted for 1,030,000 1,269,000

Problem 06
1) Actual Strawberry Chocolate Conversion
Started 100,000 WD EUP WD EUP WD EUP
Completed 90,000 100% 90,000 100% 90,000 100% 90,000
IP, end 10,000 100% 10,000 - - 70% 7,000
100,000 100,000 90,000 97,000

2) Unit cost
Strawberry= 180,000/100,000= 1.80
Chocolate= 135,000/90,000= 1.50
Conversion= 116,400/97,000= 1.20

3) Completed and transferred (90,000 x 4.50) 405,000

Problem 07
 a) Lost units – normal, discovered at the beginning
Units received 80,000
Units 60,000 100% 60,000 100% 60,000
Units IP end 10,000 100% 10,000 50% 5,000
Units lost 10,000 - -- -- ---
80,000 70 , 000 6 5, 000

Cost charged to the department

Cost from preceding department 560,000 8.00
Cost added to the department
Materials 175,000 2.50
Labor 121,875 1.875
Overhead 243,750 3.75
Total cost added 540,625 8.125
Total costs 1,100,625 16.125

Cost accounted for as follows

Completed and transferred (60,000 x 16.125) 967,500
In process, end
Cost from preceding dept. (10,000 x 8) 80,000
Materials (10,000 x 2.5) 25,000
Labor (5,000 x 1.875) 9,375
Overhead (5,000 x 3.75) 18,750 133,125
Total costs as accounted for 1,100,625

b) Lost units- normal, discovered at the end

Actual Materials Conversion
Units WD EUP WD EUP
Completed 60,000 100% 60,000 100% 60,000
IP, end 10,000 100% 10,000 50% 5,000
Lost 10,000 100% 10,000 100% 10,000
80,000 80,000 75,000

Cost charged to the department

Cost from the preceding dept. 560,000 7.00
Cost added in the dept.
Materials 175,000 2.1875
Labor 121,875 1.625
Overhead 243,750 3.25
Total cost added 540,625 7.0625
Total costs 1,100,625 14.0625

Total costs accounted for as follows:

Completed and transferred (60,000 x 14.0625) + (10,000 x 14.0625) 984,375
In process, end
 Cost from preceding dept. (10,000 x 7) 70,000
Materials (10,000 x 2.1875) 21,875
Labor (5. 000 x 1.625) 8,125
Overhead (5,000 x 3.25) 16,250 116,250
Total costs as accounted for 1,100,625

c) Lost units- abnormal, discovered when 60%

Actual Materials Conversion
Units WD EUP WD EUP
Completed 60,000 100% 60,000 100% 60,000
IP, end 10,000 100% 10,000 50% 5,000
Lost 10,000 100% 10,000 60% 6,000
80,000 80,000 71,000

Cost charged to the department

Cost from the preceding dept. 560,000 7.00
Cost added in the dept.
Materials 175,000 2.1875
Labor 121,875 1.71655
Overhead 243,750 3.43309
Total cost added 540,625 7.33714
Total costs 1,100,625 14.33714

Total costs accounted for as follows:

Completed and transferred (60,000 x 14.33714) 860,228
FOH Control (10,000 x 7) + (10,000 x 2.1875)
+ (6,000 x 5.14964)
In process, end
Cost from preceding dept. (10,000 x 7) 70,000
Materials (10,000 x 2.1875) 21,875
Labor (5. 000 x 1.71655) 8,583
Overhead (5,000 x 3.25) 17,166 117,624
Total costs as accounted for 1,100,625

d) Lost units- normal, discovered at the end

Actual Materials Conversion
Units WD EUP WD EUP
Completed 60,000 100% 60,000 100% 60,000
IP, end 10,000 100% 10,000 50% 5,000
Lost 10,000 100% 10,000 100% 10,000
80,000 80,000 75,000

Cost charged to the department

Cost from the preceding dept. 560,000 7.00
Cost added in the dept.
Materials 175,000 2.1875
Labor 121,875 1.625
Overhead 243,750 3.25
 Total cost added 540,625 7.0625
Total costs 1,100,625 14.0625

Total costs accounted for as follows:

Completed and transferred (60,000 x 14.0625) 843,750
Spoiled goods (10,000 x 12.00) 120,000
FOH Control 10,000 (14.0625 – 12.00) 20,625
In process, end
Cost from preceding dept. (10,000 x 7) 70,000
Materials (10,000 x 2.1875) 21,875
Labor (5. 000 x 1.625) 8,125
Overhead (5,000 x 3.25) 16,250 116,250
Total costs as accounted for 1,100,625

Problem 08
JBriones Company
Cost of Production Report
For the Month Ended November 30, 2020
Materials Conversion
A WD EUP WD EUP
Units received 28,000
Units completed 16,000 100% 16,000 100% 16,000
In process, end 10,000 - - 60% 6,000
Units lost- normal 800 - - 100% 800
Units lost- abnormal 1,200 - - 100% 1,200
28,000 16,000 24,000

Cost charged to the department

Cost charged to the preceding dept. 280,000 10.00
Cost added in the dept
Materials 24,000 1.50
Conversion 180,000 7.50
Total costs added 204,000 9.00
Total costs 484,000 19.00

Costs accounted for as follows

Completed and transferred (16,000 x 19) = (800 x 17.50) 318,000
FOHC (1,200 x 17.50) 21,000
In process, end
Cost from preceding dept. (10,000 x 10) 100,000
Materials - -
Conversion (6,000 x 7.50) 45,000 145,000
Total cost as accounted for 484,000
Problem 09
EDSA Company
Cost of Production Report
For the Month Ended January 31, 2020
Department 1 Department 2
Materials Conversion Materials Conversion
A WD EUP WD EUP A WD EUP WD EUP
Stared/received 60,000 36,000
Increase in units 9,000
60,000 45,000
Completed 36,000 100 36,00 100% 36,00 39,000 100 39,00 100% 39,000
% 0 0 % 0
In process, end 9,000 100 9,000 1/3 3,000 6,000 100 6,000 40% 2,400
% %
Units lost 15,000 _____ _____ _____ _____ _____
60,000 45,00 39,00 45,000 45,00 41,400
0 0

Cost charged to the department Department 1 Department 2

Cost charged to the preceding dept. 230,400 5.12
Cost added in the dept
Materials 180,000 4.00 135,000 3.00
Labor 78,000 2.00 82,800 2.00
Overhead 15,600 0.40 41,400 1.00
Total costs added 273,600 6.40 259,200 6.00
Total costs 273,600 6.40 489,600 11.12

Costs accounted for as follows Department 1 Department 2

Completed (36,000 x 6.40) 230,400 (30,000 x 11.12) 433,680
In process, end
Cost from preceding dept. (6,000 x 5.12) 30,720
Materials (9,000 x 4) 36,000 (6,000 x 3) 18,000
Labor (3,000 x 2) 6,000 (2,400 x 2) 4,800
Overhead (3,000 x 0.40) 1,200 43,200 (2,400 x 1.00) 2,400 55,920
Total cost as accounted for 273,600 489,600

Problem 10
Junifer Company
Cost of Production Report
For the Month Ended July 31, 2020
Department 1
Materials Conversion
A WD EUP WD EUP
 Units received 5,000
Units Completed 3,800 100% 3,800 100% 3,800
In process, end 800 40% 320 20% 160
Units lost 400 100% 400 100% 400
5,000 4,520 4,360

Cost charged to the department

Cost charged to the preceding dept. 60,000 12.00
Cost added in the dept
Materials 22,600 5.00
Labor 17,440 4.00
Overhead 13,080 3.00
Total added cost 53,120 12.00
Total costs as accounted for 113,120 24.00

Costs accounted for as follows

Completed and transferred (3,800 x 24) 91,200
Spoiled goods (400 x 15) 6,000
FOHC 400 x (24-15) 3,600
In process, end
Cost from preceding dept. (800 x 12) 9,600
Materials (320 x 5) 1,600
Labor (160 x 4) 640
Overhead (160 x 3) 480 12,320
Total cost as accounted for 113,120

Journal entries
Work in Process- Finishing Department 60,000
Work in Process- Cutting Department 60,000

Work in Process- Finishing Department 53,120

Materials 22,600
Labor 17,440
Factory Overhead Applied 13,080

Finished Goods Inventory 91,200

Spoiled Goods Inventory 6,000
Factory Overhead Control 3,600
Work in Process- Finishing Department 100,800
Problem 11
Units received 55,000
Increase in Units 5,000
60,000
Materials Conversion
Units completed 45,000 100% 45,000 100% 45,000
Units completed and on hand 3,000 100% 3,000 100% 3,000
Units in process, end 12,000 100% 12,000 70% 8,400
60,000 60,000 56,400
 Cost charged to the department
Cost charged to the preceding dept. 24,750 0.4125
Cost added in the dept
Materials 7,200 0.12
Conversion 53,580 0.95
Total added cost 60,780 1.07
Total costs 85,530 1.4825

Total costs accounted for as follows

Completed and transferred (45,000 x 1.4825) 66,712.50
Completed and on hand (3,000 x 1.4825) 4,447.50
In process, end
Cost from preceding dept. (12,000 x 0.4125) 4,950
Materials (12,000 x 0.12) 1,440
Conversion cost (8,400 x 0.95) 7,980 14,370
Total cost as accounted for 85,530

CHAPTER 11: Average and FIFO Costing

True or False
1. T 6. T
2. T 7. F
3. T 8. T
4. F 9. T
5. T 10. T

Problem 01
1) FIFO Method
Units in process, beg 10,000
Units started 45,000
55,000
Units comp. and transferred 50,000
Materials Conversion
Actually WD EUP WD EUP
In process, beginning 10,000 20% 2,000 40% 4,000
Started and completed 40,000 100% 40,000 100% 40,000
Units in process, end 5,000 50% 2,500 40% 2,000
55,000 44,500 46,000
2) Average Method
Units in process, beg 10,000
Units started 45,000
55,000
Materials Conversion
Actually WD EUP WD EUP
Units completed 50,000 100% 50,000 100% 50,000
Units in process, end 5,000 50% 2,500 40% 2,000
55,000 52,500 52,000

Problem 02
1) FIFO Method
Units in process, beg 15,000
 Units started 45,000
60,000
Units comp. and transferred 50,000
Materials Conversion
Actually WD EUP WD EUP
In process, beginning 15,000 40% 6,000 25% 3,750
Started and completed 35,000 100% 35,000 100% 35,000
Units in process, end 10,000 60% 6,000 80% 8,000
60,000 47,000 46,750

2) Average Method
Units in process, beg 15,000
Units started 45,000
60,000
Materials Conversion
Actually WD EUP WD EUP
Units completed 50,000 100% 50,000 100% 50,000
Units in process, end 10,000 60% 6,000 80% 8,000
60,000 56,000 52,000

Problem 03
1) Equivalent production
Units IP, beg. 300
Units started 2,000
2,300
Actual Materials Conversion
WD EUP WD EUP
In process, beg 300 40% 120 70% 210
Started and comp. 1,400 100% 1,400 100% 1,400
Units IP, end 600 40% 240 20% 120
2,300 1,760 1,730

2) Unit cost
Materials: 3,174/1,760= 2.11022 WIP, beg
Conversion: 2,258/1,730=1.30502 Materials 360
3.41524 Conversion cost 180
WIP (this period)
Materials 3,714
CC 2,258
6.512

3) Cost of goods transferred out

IP, beg 540
Cost last month
Cost added this month
Materials (120 X 2.11022) 253.2264
Conversion (210 X 1.30502) 274.0542 1,067.3
Units started and comp. (1,400 X 3.41524) 4,781.4
 5848.7

4) Cost of ending inventory

Materials (240 X 2.11022) 506.4
Conversion (120 X 1.30502) 156.6
663.0

Problem 04
FIFO
1) Equivalent production
Units IP, beg 8,000
Units started 14,000 (9,000 + 5,000)
22,000
Units comp. and trans. 17,000
Actual Materials Labor & OH
WD EUP WD EUP
In process (beg.) 8,000 70% 5,600 70% 5,600
Started & comp. 9,000 100 9,000 100 9,000
Units IP, end 5,000 %
80% 4,000 %
40% 2,000
22,000 18,600 16,600

2) Unit cost
Materials 126,852/18,000 = 6.82
Conversion 219,120/16,600=13.20

WAVE
1) Equivalent production
Units IP, beg 8,000
Units started 14,000
22,000
Actual Materials Conversion
WD EUP WD EUP
Units Completed 17,000 100% 17,000 100% 17,000
Units IP, end 5,000 80% 4,000 40% 2,000
22,000 21,000 19,000

2) Unit cost
Materials (16,440+126,862)/21,000= 6.8234
Conversion (31,800+219,120)/19,000= 13.2063

Problem 05
FIFO
1) Equivalent production
Units IP, beg 15,000
Units started 250,000
265,000
Actual Materials Conversion
WD EUP WD EUP
IP, beg 15,000 1/3 5,000
Units comp & transf. 230,000 100% 230,000 100% 230,000
Units IP, end 20,000 100% 20,000 40% 8,000
265,000 265,000 253,000

2) Unit cost
Materials 3,500,000/250,000= 14.00
Conversion 1,458,000/243,000= 6.00
20.00
3) Completed and transferred
IP, beg
Cost last month 270,000
Cost added (5,000x6) 30,000 300,000
Started and completed (20,000x20) 4,600,000
4,900,000

4) In process, end
Materials (20,000x14) 280,000
Conversion (8,000x6) 48,000
328,000

WAVE
1) Equivalent production
Units in process, beg 15,000
Units started 250,000
265,000
Materials Conversion
Actual WD EUP WD EUP
Units completed 245,000 100% 245,000 100% 245,000
Units in process, end 20,000 100% 20,000 40% 8,000
265,000 265,000 253,000

2) Unit cost
Materials (210,000+3,500,000)/265,000= 14.00
Conversion (60,000+1,458,000)/253,000= 6.00

3) Completed and transferred (245,000x20) 4,900,000

4) In process, end
Materials (20,000x14) 280,000
Conversion (8,000x6) 48,000
328,000

Problem 06
FIFO
1) Equivalent production
Units IP, beg 15,500
Units started 36,000
51,500
Units completed 48,000 Materials Conversion
WD EUP WD EUP
IP, beg 15,500 35% 5,425
Units comp & transf. 32,500 100% 32,500 100% 32,500
Units IP, end 3,500 100% 3,500 45% 1,575
51,500 35,500 39,500
2) Unit cost
Materials 54,000/36,000= 1.50
Conversion 79,000/39,500= 2.00

3) Completed and transferred

IP, beg
Cost last month 27,950
Cost added (5,425x2) 10,850
Started and completed (32,500x3.5) 113,750
152,550

4) IP, end
Materials (3,500x1.50) 5,250
Conversion (1,575x2) 3,150
8,400
WAVE
1) Equivalent production
Units in process, beg 15,500
Units started 36,000
51,500
Materials Conversion
Actual WD EUP WD EUP
Units completed 48,000 100% 48,000 100% 48,000
Units in process, end 3,500 100% 3,500 45% 1,575
51,500 51,500 49,575

2) Unit cost
Materials (7,800+54,000)/51,500= 1.20
Conversion (20,150+79,000)/49,575= 2.00
3) Completed and transferred (48,000 x 3.20) 153,600

4) In process, end
Materials (3,500x1.20) 4,200
Conversion (1,575x2.00) 3,150
7,350

Problem 07
WAVE
GDL Company
Cost of Production Report
For the Month Ended October 31, 2020
Finishing Department
Materials Conversion
Quantity schedule Actual WD EUP WD EUP
Units IP, beg 10,000
Units received 40,000
50,000

Units completed 35,000 100% 35,000 100% 35,000

Units IP, end 10,000 100% 10,000 50% 5,000
Units lost- normal 5,000 ________ _________
50,000 45,000 40,000

Cost charged to the department

In process, beg P 40,000
Trans. In during the month 140,000 180,000 P 4.00
Cost added to the dep.
Materials 20,000
Conversion 81,000
Added during this month
Materials 70,000 2.00
Conversion 292,500 9.3375
Total cost added 463,500 11.3375
Total costs to be accounted for P 643,500 P 15.3375

Cost accounted for as follows

Completed and transf.
In process, beg
Cost last month 141,000
Cost added last month (2,500x9) 22,500 163,500
Rec. and comp. (25,000x15) 375,000 538,000
In process, end
Cost from prec. dept. 40,000
Materials 20,000
Conversion cost 45,000 105,000
Total costs as accounted for P 643,500

Computations (Unit Cost)

Cost from preceding department 140,000/ (40,000- 5,000) = P4.00
Materials 70,000/35,000 = P2.00
Conversion Costs 292,500/32,500=P9.00

In process (beg) In process (end)

Cost last month 141,000 Cost from prec. department 40,000
(40,000 + 20,000 + 39,000 + 42,000) (10,000 X 4)
Cost added this month 22,500 Materials 20,000
(2,500 X 9) (10,000 X 2)
Received & Completed 375,000 Conversion Costs 45,000
(25,000 X 15) 538,500 (5,000 X 9) 105,000

Problem 08
1) Equivalent production
Units in process, beg 600
Units started 3,900
4,500
Material A Material B Conversion
Actual WD EUP WD EUP WD EUP
Units completed 4,100 100% 4,100 100% 4,100 100% 4,100
Units in process, end 400 100% 400 - - 30% 120
4,500 4,500 4,100 4,220

Unit cost
From preceding dept. (9,090+67,410)/4,500 = 17
Material A (4,000+21,200)/4,500 = 5.60
Material B 16,4004,100 = 4.00
Conversion (1,340+17,560)/4,220 = 4.5
31.10
2) Completed and tranf. (4,100x31.10) 127,510

3) In process, end
Cost from prec. Dept. (400x17) 6,800
Material A (400x5.6) 2,240
Conversion (120x4.5) 540
Total cost of IP, end 9,580

Problem 09
Materials Conversion Total
Cost- IP, beg 6,544 16,803 23,347
Current cost 281,656 344,817 626,473
Total costs 288,200 361,620 649,820
Divided by equivalent prod. 262,000 258,300
Unit cost 1.10 1.40 2.50

1) Completed and transf. (255,200x2.50) 638,000

2) Total costs to be accounted for 649,820
Less: cost of units IP, end 11,597
638,223

Problem 10
1) Equivalent production
Units in process, beg 12,000
Units received 80,000
Increase in units 4,000
96,000
Materials Conversion
Actual WD EUP WD EUP
Units completed 86,000 100% 86,000 100% 86,000
Units in process, end 10,000 100% 10,000 2/5 4,000
96,000 96,000 90,000

Transferred in Materials Labor Overhead Total

Cost- IP, beg P 11,800 P 3,125 P 1,490 P 1,320 P 17, 735
Current cost 86,120 21,835 43,510 34,680 186,145
Total costs 97,920 24,960 45,000 36,000 203,880
Divided by equivalent prod. 96,000 96,000 90,000 90,000
Unit cost P 1.02 P 0.26 P 0.50 P 0.40 P 2.18

2) Completed and transf. (86,000x2.18) 187,480

3) In process, end
Cost from prec. Dept. (10,000x1.02) 10,200
Materials (10,000x0.26) 2,600
Labor (4,000x0.50) 2,000
Overhead (4,000x.40) 1,600
P 16,400

Problem 11
1) Equivalent production
Units received 60,000
Materials Conversion
Actual WD EUP WD EUP
Units completed 50,000 100% 50,000 100% 50,000
Units in process, end 9,000 100% 9,000 ½ 4,500
Units lost- abnormal 1,000 _______ ______
60,000 59,000 54,500

Cost from the prec. Dept. (60,000x3.54) 212,400 3.54

Materials (59,000x1.43) 84,700 1.43
Conversion (54,500x2.38) 129,710 2.38
426,810 7.35

2) Factory OH -lost units (1,000x3.54) 3,540

3) Completed and transferred (50,000x7.35) 367,500

4) In process, end
Cost from prec. Dept. (9,000x3.54) 31,860
Materials (9,000x1.43) 12,870
Conversion (4,500x2.8) 10,710
55,440

Problem 12
Units in process, beg 1,400
Units received 14,000
15,000
Materials Conversion
Actual WD EUP WD EUP
Units completed 11,200 100% 11,200 100% 11,200
Units in process, end 3,500 100% 3,500 40% 1,400
Units lost- normal 560 100% 560 100% 560
Units lost- abnormal 140 100% 140 100% 140
15,400 15,400 13,300

1) Completed and trans. (11,200x9)+(560x9) P 105, 840

2) FOH Control (140x9) 1,260

3) In process, end
Cost from the prec. Dept (3,500x5) 17,500
Materials (3,500x1) 3,500
Conversion (1,400x3) 4,200
25,200
Problem 13
Units IP, beg 1,250
Units received 2,000
3,250
Units completed 2,750 Conversion
WD EUP
IP, beg 1,250 20% 250
Started and comp. 1,500 100% 1,500
Units IP, end 500 50% 250
3,250 2,000

Unit cost 264,000/2,000= P 132.00

Comp. and transf.
In process, beg
Cost last month 128,000
Cost added (250x132) 33,000
Cost of IP, be upon comp. 161,000

Units started and comp. (1,500x132) 198,000

1) Units in process, end (250x132) 33,000

2) Finished goods, end (700x132) 92,400

3) Total cost of units sold

Total available for sale
Finished goods, beg (600 units) P 76,800
IP, beg and comp. (1,250) 161,000
Started and comp. (1,500x132) 198,000
435,800
Less: finished goods, end 92,400
Total cost of units sold P 343,400

CHAPTER 13: Standard Costing

True or False
1. F 6. F
2. F 7. T
3. T 8. F
4. F 9. F
5. F 10. T

Problem 01
1) Material price variance
Actual Price 2.52
Less: Standard price 2.50
Difference 0.02
Actual quantity of mats. pur. & used 4,450
Material Price Variance P 89 U

2) Material Efficiency Variance

Actual quantity used 4,450
Less: Standard quantity 4,050
Difference 400
Standard Material Price 2.50
Material Efficiency Variance P 1,000 U

3) Labor Rate Variance

Actual Rate 3.00
Less: Standard Rate 3.10
Difference (0.10)
Actual Labor hours used 3,150
 Labor Rate Variance P (315) F

4) Labor Efficiency Variance

Actual Hours 3,150
Less: Standard Hours 3,000
Difference 150
Standard Rate 3.10
Labor Efficiency Variance P 465 U

Problem 02
1) Material Price Variance
Actual Price 2.65
Less: Standard price 2.75
Difference 0.10
Actual quantity of mats. pur. & used 3,600
Material Price Variance P (360) F

2) Material Efficiency Variance

Actual quantity used 3,200
Less: Standard quantity 3,000
Difference 200
Standard Material Price 2.75
Material Efficiency Variance P 550 U

3) Labor rate Variance

Actual Rate 15
Less: Standard Rate 15
0
4) Labor Efficiency Variance
Actual Hours 340
Less: Standard Hours 300
Difference 40
Standard Rate 15
Labor Efficiency Variance P 600 U

5) Variable OH Efficiency Variance

Actual Hours 340
Less: Standard Hours 300
Difference 40
Variable OH rate 7
Variable Efficiency Rate P 280 U

Problem 03
Total 5,000 DLHrs. Per DLHr.
Fixed 5,000 1.00
Variable 7,500 1.50
Total 12,500 2.50
Standard hrs./unit = 5,000 DLHr/4,000 units
= 1.25 hr/unit
1) Materials
Material Price Variance
Actual Price 1.02
Less: Standard price 1.00
Difference 0.02
Actual quantity of mats. pur. & used 7,200
Material Price Variance P 144 U

Material Quantity Variance

Actual quantity used 7,200
Less: Standard quantity 7,000
Difference 200
Standard Material Price 1.00
Material Quantity Variance P (360) F
2) Labor
Labor Rate Variance
Actual Rate (33,750/4,500) 7.50
Less: Standard rate 8.00
Difference (0.50)
Actual labor hours used 4,500
Labor Rate Variance P (2,250) F

Labor Efficiency Variance

Actual Hours 4,500
Less: Standard Hours 4,375
Difference 125
Standard Rate 8.00
Labor Efficiency Variance 1,000 U

3) Factory Overhead
Controllable Variance
Actual Overhead 11,250
Less: Budget allocated on standard hrs.
Fixed 5,000
Variable (4,750x1.5) 6,562.50 11,562.50
Controllable Variance P (312.50) F

Volume Variance
Budget allowed on standard hrs. 11,562.50
Less: OH Applied to prod. (4,375x2.5) 10,937.50
Volume Variance P 625 U

Problem 04
Total 155,000 DLHrs. Per DLHr.
Fixed 620,000 4.00 (4X155,000)
Variable 465,000 3.00 (465,000/155,000)
Total 1,085,000 7.00
Standard hrs/unit= 10.00 DLHr/4 units
= 2.5 hr/unit

1) Variable OH Spending Variance

Actual Variable OH 475,000
Less: AH x Variable Rate ( 148,000x) 444,000
Variable Spending Variance P 31,000 U

Variable Efficiency Variance

All x Variable Rate 444,000
Less: Std. hrs.x Variable Rate 450,000
Variable Efficiency Variance P (6,000) F

2) Fixed OH Spending Variance

Actual Fixed OH 632,500
Less: Fixed OH at Normal Capacity 620,000
Fixed Spending Variance p 12,500 U

Fixed OH Volume Variance

Fixed OH at Normal Capacity 620,000
Less: Std. hrs.x Fixed Rate (150,000x4) 600,000
Fixed Volume Variance P 20,000 U

3)
Actual Factory OH (475,000+632,500 1,107,500
)
Less Budget Allow on Std. Hrs.
Fixed 620,000
Variable (150,000x3) 450,000 1,070,000
Controllable Variance P 37,500 U

Budget Allowed on Std. hrs. 1,070,000

Less: Std. hrs.x OH Rate (150,000x7) 1,050,000
Volume Variance P 20,000 U

4)
Actual Factory OH (475,000+632,500 1,107,500
)
Less Budget Allow on Std. Hrs.
Fixed 620,000
Variable (148,000x3) 444,000 1,064,000
Spending Variance P 43,500 U

Budget Allowed on Actual hrs. 1,064,000

Less: Budget Allowed on Std. Hrs. 1,070,000
Variable Efficiency Variance P (6,000) F

Budget Allowed on Std. hrs. 1,070,000

Less: Std. hrs.x FOh Rate (150,000x7) 1,050,000
Volume Variance P 20,000 U
5)
Actual Variable OH 475,000
Actual Hrs x Variable OH Rate 444,000
Variable Spending Variance P 31,000 U

Actual Hrs. x Variable OH Rate 444,000

Std. Hrs x Variable OH Rate 450,000
Variable Efficiency Variance P(6,000) F

Actual Fixed OH 632,500

Std. Hrs. x Variable OH Rate 620,000
Fixed Spending Variance P 12,500 U

Budgeted Fixed OH 620,000

Std. Hrs. x Fixed OH Rate 600,000
Volume Variance P 20,000 U

Problem 05
Completed and transferred 40,000
Actual Materials Conversion
WD EUP WD EUP
In process, beg 10,000 - - 20% 2,000
Started & comp. 30,000 100% 30,000 100% 30,000
In process, end 20,000 100% 20,000 50% 10,000
60,000 50,000 42,000

1) Materials
Actual Price 1.20
Less: Standard Price 1.00
Difference 0.20
Actual Material Purchase 2,000,000
Material Price Variance P 400,000 U

Actual quantity used 1,200,000

Less: Standard quantity 1,000,000
Difference 200,000
Standard Price 1.00
Material Usage Variance P 200,000 U

2) Labor
Actual Rate 14.00
Less: Std. Rate 15.00
Difference (1.00)
Actual Labor Hours used 50,000
Labor Rate Variance P (50,000)F

Actual Hrs. 50,000

 Less: Standard Hrs. 40,000
Difference 10,000
Standard Rate 15.00
Labor efficiency Variance P 150,000 U

3) Factory OH
Actual Overhead (280,000+83,000) 363,000
Less: Budget allocated on standard hrs.
Fixed 80,000
Variable (40,000x5) 200,000 280,000
Controllable Variance P 83,000 U

Budget allowed on standard hrs. 280,000

Less: OH Applied to prod. (40,000x7) 280,000
Volume Variance 0

Problem 06
1) Materials
Actual Price 1.05
Less: Standard Price 1.00
Difference 0.05
Actual Quantity (63,525/1.05) 60,000
Material Price Variance P 3.025U

Actual quantity used 60,500

Less: Standard Quantity (5,000x12) 60,000
Difference 500
Standard Price 1.00
Material Quantity Variance P 500 U

2) Labor
Actual Rate 9.15
Less: Std. Rate 9.00
Difference 0.15
Actual hrs. (96,075/9.15) 10,500
Labor Rate Variance 1,575 U

Actual Hrs. 10,500

Less: Standard Hrs. (5,000x2) 10,000
Difference 500
Standard Rate 9.00
Labor efficiency Variance P 4,500 U

Total 144,000 DLHrs. Per DLHr.

Fixed 288,000 2.00
Variable 360,000 2.50
 Total 648,000 4.50

3) Factory Overhead
Actual Overhead (27,000+24,500) 51,000
Less: Budget allocated on standard hrs.
Fixed (288,000/12) 24,000
Variable (10,000x2.5) 25,000 49,000
Controllable Variance P 2,000 U

Budget allowed on standard hrs. 49,000

Less: OH Applied to prod. (10,000x4.50) 45,000
Volume Variance P 4,000 U

Journal Entries
Material (60,500x1) P60,500
Material Price Variance 3,025
Accounts Payable P63,525

Work in Process (5,000x12x1) 60,000

Material Quantity Variance 500
Materials 60,500

Payroll 96,075
Accrued Payroll 96,075

Work in process (5,000x2x9) 90,000

Labor Rate Variance 1,575
Labor Efficiency Variance 4,500
Payroll 96,075

Factory Overhead Control 51,500

Miscellaneous Accounts 51,500

Work in process 45,000

Factory Overhead Applied 45,000

Factory Overhead Applied 45,000

Factory OH-Controllable Variance 2,500
Factory OH-Volume Variance 4,000
Factory Overhead Control 51,500

Finished Goods (5,000x39) 195,000

Work in process 195,000
Accounts Receivable 450,000
Sales 450,000

Cost of goods sold (4,500x39) 175,500

Finished Goods 175,500
Cost of Goods Sold 16,100
Material Price Variance 3,025
Material Quantity Variance 500
Labor Rate Variance 1,575
Labor Efficiency Variance 4,500
FOH-Controllable Variance 2,500
FOH-Volume Variance 4,000

Problem 07
1)
Variable Efficiency (900)
Std. Variable OH Rate 3
300
Actual hours 101,000
Ans. Standard Hrs. Allowed 101,300

Actual Hours 101,000

Less: Standard Hours 101,300
Difference (300)
Variable rate 3
Variable Efficiency (900)

2)
Actual Variable OH 303,750
Less: Variable Spending 750
Difference 303,000
Std. Variable OH Rate 3.00
Labor Rate Variance 101,000

3)
Actual Fixed OH 299,950
Less: Fixed Spending 4,950
Difference 295,000
Add: Fixed Volume Variance 3,835
Applied OH to Prod. 298,835

Fixed OH at normal capacity 295,000

Less: Applied OH to prod 298,835
Fixed Volume Variance (3,835)

Actual Fixed OH 299,950

Less: Fixed Spending 4,950
 Fixed OH at Normal cap. 295,000

Problem 08
1)
Labor Efficiency Variance 4,200
Std. Wage Rate 3.75
1,120
Add: std. hrs. allowed for act. Prod. 10,000
Ans. Actual Hours Worked 11,120

Actual Hours Worked 11,120

Less: Std. hrs. allowed for act. Prod. 10,000
Difference 1,120
Standard Wage Rate 3.75
Labor Efficiency Variance (900)