Problem 1
ABC Manufacturing produces ceramic mugs in a single Processing
Department. For the month of August, 5,000 units were started into
production. At the beginning of the month, 1,200 units were still in process
(70% complete as to materials, 50% complete as to conversion costs while
1,400 (60% complete for materials, 40% complete for conversion costs) units
were found to be still in process by the end of the month.
Requirement:
a. How many units were completed during the month?
b. Compute for EUP of materials and conversion costs using:
i. FIFO
ii. Weighted average
Problem 2
A manufacturing company uses process costing and has the following data for
the month of November:
Beginning in process (60% complete as to conversion cost) P12,000
Units started in November 21,000
Ending in process (70% incomplete as to conversion cost) 7,500
Compute for EUP under the following conditions:
1. Using FIFO when direct materials are added at the:
a. Beginning of the process
b. End of the process
2. Using Weighted average when direct materials are added at the:
a. Beginning of the process
b. End of the process
Problem 3
Lucky You Company manufactures flavored noodles in a single department.
The following data for the month of July is provided as follows:
Production
Beginning in process (40% complete as to conversion) 3,000 units
Units started this month 12,000 units
End in process (60% complete as to conversion) 5,000 units
Costs
Beginning in process costs:
Materials P1,500
Conversion 2,000
Costs added during the month:
Materials P8,000
Conversion 5,000
All materials are added at the start of the process. Do the following
requirements:
1. Compute for the Equivalent units of Production using
a. FIFO
b. Weighted Average
2. Compute for the cost per EUP using
a. FIFO
b. Weighted Average
3. Compute for the costs of units completed or transferred out using
a. FIFO
b. Weighted Average
4. Compute for the costs of ending inventory using
a. FIFO
b. Weighted Average
