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ACC-123-PRACTICE-SET

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20 views3 pages

ACC-123-PRACTICE-SET

Uploaded by

Kimberly Ratonel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ACC 123

Practice Set
PROCESS COSTING

Leslie Company has the following information available for June 2021:

Beginning Work in Process Inventory


(25% complete as to conversion) 20,000 units
Started 130,000 units
Ending Work in Process Inventory
(75% complete as to conversion) 30,000 units

Beginning Work in Process Inventory Costs:


Material P 4,400
Conversion 17,250

Current Period Costs:


Material P 52,000
Conversion 82,500

All material is added at the start of production and all products completed
are transferred out.

Required:
Prepare a HANDWRITTEN production report for each of the following:
(a) First-In-First-Out (FIFO) method
(b) Weighted Average method

Each report must show the following schedules:


(a) Equivalent units
(b) Costs per equivalent units
(c) Assignment of costs

You may refer to the sample production reports below to guide you in this
activity.
Mixing Department Production Report for October 2021
(FIFO Method)

Units to account for: Units accounted for:


Units, WIP beginning 10,000 Units completed 60,000
Units started 70,000 Units, WIP ending 20,000
Total units to account for 80,000 Total units accounted for 80,000

Equivalent Units (EU)


Direct Materials Conversion Cost
Units started and completed 50,000 50,000
Units, WIP beginning (30%) 0 3,000
Units, WIP ending (40%) 20,000 8,000
Equivalent Units of output 70,000 61,000

Costs to account for: Direct Materials Conversion Costs Total


WIP beginning 1,000 350 1,350
Current costs 12,600 3,050 15,650
Total Costs to account for P13,600 P3,400 P17,000

Costs per Equivalent Unit:


Current costs 12,600 3,050
Divided by the EU / 70,000 / 61,000
Total Costs per EU P0.18 P0.05 P0.23

Costs accounted for:


Units transferred out
Units, WIP beginning
prior period 1,000 350 1,350
current period (3,000 x 0.05) 150 150
total 1,500
Units started and completed
DM (50,000 x 0.18) 9,000 9,000
CC (50,000 x 0.05) 2,500 2,500
total 11,500
Total 10,000 3,000 13,000
WIP ending
DM (20,000 x 0.18) 3,600 3,600
CC (8,000 x 0.05) 400 400
Total 3,600 400 4,000
Total Costs accounted for P13,600 P3,400 P17,000
Mixing Department Production Report for October
(Weighted Average Method)

Units to account for: Units accounted for:


Units, WIP beginning 10,000 Units completed 60,000
Units started 70,000 Units, WIP ending 20,000
Total units to account for 80,000 Total units accounted for 80,000

Equivalent Units (EU)


Direct Materials Conversion Cost
Units completed 60,000 60,000
Units, WIP ending (40%) 20,000 8,000
Equivalent Units of output 80,000 68,000

Costs to account for: Direct Materials Conversion Costs Total


WIP beginning 1,000 350 1,350
Current costs 12,600 3,050 15,650
Total Costs to account for P13,600 P3,400 P17,000

Costs per Equivalent Unit:


Total costs 13,600 3,400
Divided by the EU / 80,000 / 68,000
Total Costs per EU P0.17 P0.05 P0.22

Costs accounted for:


Units transferred out
DM (60,000 x 0.17) 10,200 10,200
CC (60,000 x 0.05) 3,000 3,000
Total 10,200 3,000 13,200
WIP ending
DM (20,000 x 0.17) 3,400 3,400
CC (8,000 x 0.05) 400 400
Total 3,400 400 3,800
Total Costs accounted for P13,600 P3,400 P17,000

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