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Process 2 Activity

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17 views

Process 2 Activity

process

Uploaded by

Shane
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PROCESS 2 ACTIVITY

The following data pertains to the production area of BE HONEST COMPANY. The production process consists
of three processes: cutting, assembling and finishing department. Each unit of product is being processed under the
three processes starting from cutting to finishing department. The application of materials in each department is as
follows: at the beginning of the process in cutting department; in assembling department, 50% are added at the
beginning of the process and another 50% when the percentage of completion is at least 60%; in finishing
department, materials are added at the end of the process. Cutting department and finishing departments are both
using the FIFO method while the assembling department is using Average method of costing system.
Below is the summary of the cost and units processed by the company:

JANUARY: Cutting Department


Units Started 5,000 units
Current Cost P 10,000 for materials and P 4,000 for conversion cost
FEBRUARY: Cutting Department
IP, beg units 2,000 (40% done)
Units Started 7,000 units
Current Cost P 17,000 for materials and P 9,000 for conversion cost
Assembling Department
Units transferred-in from Previous Department were processed in this department
Current cost P 5,000 for materials and P2,000 for conversion cost
MARCH: Cutting Department
IP, beg units (30% done)
Units Started 4,000 units
Current Cost P 7,000 for materials and P 4,000 for conversion cost
IP, end 3,000 units (60% done)
Assembling Department
IP, beg units 1,000 (40% done)
Units transferred-in from Previous Department 6,000 units
Current Cost P 12,000 for materials and P 5,000 for conversion cost
IP, end 4,000 units (80% done)
Finishing Department
Units transferred-in from Previous Department
Current Cost P 5,000 for materials and P2,000 for conversion cost

Compute for the Following:


1. Cost Per EUP for materials and conversion cost
JANUARY: Cutting: _________________, _________________
FEBRUARY: Cutting: _________________, _________________
Assembling: _________________, _________________
MARCH: Cutting: _________________, _________________
Assembling: _________________, _________________
Finishing: _________________, _________________
2. Cost allocated to Finished and Transferred-Out and IP, end
JANUARY: Cutting: _________________, _________________
FEBRUARY: Cutting: _________________, _________________
Assembling: _________________, _________________
MARCH: Cutting: _________________, _________________
Assembling: _________________, _________________
Finishing: _________________, _________________

3. Prepare Cost Production report for the month of February (Assembling Department)
4. Prepare Cost of Goods Manufactured (Company) for the First Quarter ended March 31, 2016

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