Process Costing

1. Compute the EUP for each of the following independent cases below:
A. The production of data of Jewel Company for the month of December 2018, follow:
Department A Department B
In process, Dec 1 10,000 5,000
Stage of completion 2/5 10%
Started in process 20,000 25,000
In process, Dec 31 ? 10,000
Stage of completion 60% 3/5
Department A applies materials as follows: 1/5 when the process is started; 30% when
the process reaches 1/2 completion, and the balance at the end of the process. In
Department B, materials are applied 60% at the start of the process and 40% at the
end. Conversion costs are applied uniformly.

B. Materials are issued at the following stages:

At the start of the process 25%
When work is 50% completed 50%
When work is 75% completed balance
Conversion costs are applied uniformly.
In process, June 1 (3/4 incomplete) 10,000 units
Transferred out 65,000
In process, June 30 (2/5 incomplete) 25,000

C. In process, beginning (40% incomplete) 28,000 units

Started in process during the period 86,000
Transferred out to the next department 86,000
In process, ending (3/5 complete) ?
Materials are issued 100% at the start of the process, and conversion cost are
applied uniformly.

D. In process, beginning (1/4 complete) 10,000 units

Started in process 7,500
In process, ending (2/5 complete) 10,500
Materials are issued as follows: 40% at the start and the balance at the end
of the process. Conversion costs are applied uniformly.

2. The W Company uses process in its two producing departments. On April 1,

Department B had no units in beginning inventory. During April, 25,000 units were
transferred from Department A to Department B. On April 30, Department B had 5,000
unit of work in process, 60% complete as to labor and 40% complete as to factory
overhead. During the month, 20,000 units were transferred from Department B to
Finished Goods Inventory. Materials are added in the beginning of the process in
Department B. The following journal entries summarize April Activity:

Work in process – Department A 250,000

Work in process – Department B 150,000
Materials 400,000

Work in process – Department A 108,000

Work in process – Department B 92,000
Payroll 200,000

Work in process – Department A 146,000

Work in process – Department B 154,000
FOH – Applied 300,000
 Work in process – Department B 400,000
Work in process – Department A 400,000

Required: Prepare a cost of production report.

3. S Manufacturing Company produces a product in two manufacturing departments,

Molding and Finishing. The product is molded out of plastic in the Molding
Department and then transferred to the Finishing Department, where parts are added
to the molded plastic unit.
Data related to August operations in the Molding Department are:
Beg, Inventory Added this period
Costs charged to the Department:
Materials P41,200 P448,800
Direct labor 1,100 130,500
FOH 12,900 184,500
During the period, 9,200 units were transferred from the Molding Department to the
Finishing Department. The Molding Department had 1,000 units still in process at the
end of July (100% complete as to materials and 40% complete as to conversion cost)
and 800 units still in process at the end August (75% complete as to materials and
25% complete as to conversion cost.)

Required: Prepare a cost of production report.

4. Pop Cola Company produces a soft drink in three departments, Syrup, Carbonation,
and Bottling. Syrup, which gives the drink its flavour, is produced in the first
department. The syrup is then transferred to the second department, where carbonated
water id added to give the drink its fizz. After carbonated water has been added,
the liquid drink is bottled for storage and transport to customers. A process cost
system with an average cost flow assumption is used to account for work in process
inventories. Data related to operations in the Carbonation Department during the
month of October are:
Units in beginning inventory 1,000
Units received from the Syrup Department this period 2,000
Units added to process in the Carbonation Department this period 6,000
Units transferred to Battling Department this period 7,800
Units in ending inventory (100% materials, 25% conversion) 1,200

Beginning Inventory Added this period

Costs charged to the department:
Costs from the preceding department P11,200 P96,800
Materials 1,900 16,100
Direct labor 600 15,600
FOH 1,200 31,200

Required: Compute the equivalent units, unit cost and cost assigned to finish and
transferred out units and cost assigned to work in process ending inventory.