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Final Term Assignment 3 On Cost of Production Report - FIFO Costing

Lucas took a quiz on cost accounting that consisted of 5 multiple choice questions. The questions asked about calculating costs under the first-in, first-out (FIFO) inventory costing method using data on units started, completed, and in work-in-process inventory for various time periods, as well as data on direct materials, direct labor, and overhead costs incurred. Lucas had to calculate equivalent production units, ending inventory values, unit transfer costs, and ending work-in-process inventory costs based on the given information.

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Uchiha Goku
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116 views2 pages

Final Term Assignment 3 On Cost of Production Report - FIFO Costing

Lucas took a quiz on cost accounting that consisted of 5 multiple choice questions. The questions asked about calculating costs under the first-in, first-out (FIFO) inventory costing method using data on units started, completed, and in work-in-process inventory for various time periods, as well as data on direct materials, direct labor, and overhead costs incurred. Lucas had to calculate equivalent production units, ending inventory values, unit transfer costs, and ending work-in-process inventory costs based on the given information.

Uploaded by

Uchiha Goku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Name: Lucas, Yhenuel Josh C.

Section: AC 103 Date: 5/17/2021

Score:

Final Term Assignment 3 on Cost of Production Report – First In First Out Costing

ADAPTED: Pedro P. Guerrero, Costing Accounting – Principles and Procedural Applications, 2014-2015
Edition

MULTIPLE CHOICE: Select the best answer by choosing the appropriate letter. ( 20 points )

1. Sony Manufacturing Company uses a process cost system to manufacture laptop computers.
The following information summarizes operations relating to laptop computer model SS88
during the quarter ending March 31, 2014:
Units Direct Materials
Work in process inventory, January 1 100 P 50,000
Started during the quarter 500
Completed during the quarter 400
Work in process inventory, March 31 200
Costs added during the quarter P 720,000

Beginning work in process inventory was 50% complete for direct materials. Ending work in
process inventory was 75% complete for direct materials.
What were the equivalent units of production under the FIFO method with regard to materials
for March?
a. 450
b. 500
c. 550
d. 600
2. Using the data in Number 1, what is the total value of material costs in ending work in process
inventory using the FIFO unit cost, inventory valuation method?
a. P183,000
b. P194,000
c. P210,000
d. P216,000
3. The following information is given for the final producing department of the German Company:
Beginning work in process inventory, Jan. 1 ( 40% complete as to labor) 1,000 units
Transferred in during month 30,000 units
Transferred out during month 27,000 units
Ending work in process ( 70% complete as to labor) 4,000 units
Labor cost in the beginning work in process P3,600
Labor costs incurred during month P238,140
What is the labor cost in the units transferred out of the department during the month?
a. P219,060
b. P219,300
c. P213,676
d. P213,390

Items 4 and 5 are based on the following information:


The following data has been gathered from the records of Gerry Manufacturing Company for
August 2014. The company uses the FIFO process costing method. Materials are added at the
beginning of processing; overhead is applied on a direct labor basis. The units are transferred to
a second department for packaging.
Beginning work in process inventory ( 40% complete as to conversion costs) 5,000 units
Started in August 90,400 units
Ending work in process inventory ( 70% complete as to conversion cost) 4,000 units
Materials cost incurred in August P433,920
Conversion costs incurred in August P115,250

Beginning inventory cost totaled P24,875.

4. What is the cost of the units transferred out to the Packaging Department in August?
a. P551,345
b. P522,720
c. P547,595
d. P526,470
5. What is the cost of August’s ending work in process inventory?
a. P22,700
b. P19,200
c. P23,700
d. P22,000

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