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    L1 - Assignment 1 - Process Costing

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    lalalala
    1. The document provides information to calculate equivalent units and costs for a process costing problem using the FIFO method. 2. It determines equivalent units and costs per equivalent unit for materials and conversion for beginning work in process, units completed and transferred out, and ending work in process. 3. Using the costs per equivalent unit and equivalent units, it then calculates costs for beginning work in process, units transferred out, and ending work in process to ensure total costs are properly accounted for.

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    L1 - Assignment 1 - Process Costing

    Uploaded by

    lalalala
    31 views2 pages
    1. The document provides information to calculate equivalent units and costs for a process costing problem using the FIFO method. 2. It determines equivalent units and costs per equivalent unit for materials and conversion for beginning work in process, units completed and transferred out, and ending work in process. 3. Using the costs per equivalent unit and equivalent units, it then calculates costs for beginning work in process, units transferred out, and ending work in process to ensure total costs are properly accounted for.

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    L1- ASSIGNMENT 1- PROCESS COSTING

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    1. The document provides information to calculate equivalent units and costs for a process costing problem using the FIFO method. 2. It determines equivalent units and costs per equivalent unit for materials and conversion for beginning work in process, units completed and transferred out, and ending work in process. 3. Using the costs per equivalent unit and equivalent units, it then calculates costs for beginning work in process, units transferred out, and ending work in process to ensure total costs are properly accounted for.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views2 pages

    L1 - Assignment 1 - Process Costing

    Uploaded by

    lalalala
    1. The document provides information to calculate equivalent units and costs for a process costing problem using the FIFO method. 2. It determines equivalent units and costs per equivalent unit for materials and conversion for beginning work in process, units completed and transferred out, and ending work in process. 3. Using the costs per equivalent unit and equivalent units, it then calculates costs for beginning work in process, units transferred out, and ending work in process to ensure total costs are properly accounted for.

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    © All Rights Reserved
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    of 2

    L1- ASSIGNMENT 1- PROCESS COSTING

    1.) Determine the equivalent units for materials for the month in the first processing department.
    % of % of
    Units EUP EUP
    Units to be accounted for: Materials Conversion

    Completed and transferred out 6,900 100% 6,900 100% 6,900

    Ending, WIP Inventory 2,100 75% 1,575 20% 420

    Total equivalent units 9,000   8,475   7,320


    *Ending WIP= units in ending WIP x % complete

    2.) Using the FIFO method:


    Unit reconciliation:
    Beginning, WIP Inventory   600
    Started this period 23,000
    Cost charged to account for: 23,600
       
    Beginning, WIP Inventory 600
    Completed and transferred out 22,500
    Ending, WIP Inventory 500
    Total units accounted for:   23,600

    a. Determine the equivalent units of production for materials and conversion costs.

    % of % of
    Units EUP EUP
          Materials Conversion

    Beginning, WIP Inventory 600 10% 60 90% 540

    Completed and transferred out 22,500 100% 22,500 100% 22,500

    Ending, WIP Inventory 500 70% 350 70% 350

    Total equivalent units 23,600   22,910   23,390

    b. Determine the cost per equivalent unit for materials and conversion costs.

    EUP- EUP-
          Units   Material   Conversion

    Ending, WIP Inventory 600 1,782 1,374

    Started 23,000 71,021 542,648

    Total costs 23,600 Costs 72,803 Costs 544,022


    Divided by: equivalent units   EUP 22,910 EUP 23,390
    Cost per equivalent units of
    production   ₱ 3.18 ₱ 23.26
                Total EUP ₱ 26.44
    c. Determine the cost of ending work in process inventory.
    Total costs accounted for:
    Cost per
    Cost of WIP, beginning:   EUP Total costs
    EUP
    Ending, WIP Inventory      

    Direct material 60 3.18 190.67

    Conversion cost 540 23.26 12,559.72


                ₱ 12,750.39

    Cost per
    Cost of Ending WIP EUP Total costs
    EUP

    Direct material 350 ₱ 3.18 1,112.22

    Conversion cost 350 ₱ 23.26 8,140.56


                ₱ 9,252.78

    d. Determine the cost of units transferred out of the department during the month.
    Cost per
    Cost of units transferred out: EUP Total costs
      EUP

    Direct material 22,500 ₱ 3.18 71,500.11

    Conversion cost 22,500 ₱ 23.26 523,321.72


                ₱ 594,821.83

    Cost reconciliation:
    Costs charged to production:        

    Cost of beginning WIP (P1,782 + 1,374) 3,156.00

    Cost added to production during the period (P71,021 + 542,648) 613,669.00

    Total cost to be accounted for: 616,825.00


       
    Costs accounted for:  

    Cost of beginning WIP 12,750.39

    Costs of units transferred out 9,252.78

    Cost of ending WIP 594,821.83

    Total cost accounted for:       616,825.00

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