Answers To Multiple Choice - Theoretical: 1. B 5. C 9. C 2. D 6. C 10. A 3. D 7. D 11. A 4. B 8. D 12. B

1
CHAPTER 11
Answers to Multiple Choice Theoretical
1.
2.
3.
4.
b
d
d
b
5.
6.
7.
8.
C
C
D
D
9.
10.
11.
12.
c
A
A
B
Solutions to Multiple Choice Computational

1.
2.
(c)
Materials:
Units transferred out (100%)
Units in process, April 30 (100%)
EUP
255,000
25,000
280,000
Conversion Costs:
Units in process, April: (25,000 x 60%)
EUP
255,000
15,000
270,000
(b)
Equivalent Units of Production:
Materials:
Units completed and transferred out (100%)
Units in process, end (100%)
EUP
Unit cost Materials:
Cost last month (BWIP)
Cost this month (current cost)
Total
Divided by EUP
Unit cost
3.
85,000
14,000
99,000
P12,800
69,700
P82,500
99,000
P 0.833
(b)
Equivalent Units of Production Materials
Units in process, July 31 (100%)
EUP
Unit cost Materials:
Cost last month (BWIP)
Cost this month
Total
Divided by EUP
Unit cost
Work in process, July 31: (12,000 x P0.51)
44,000
12,000
56,000
P 3,000
25,560
P28,560
56,000
P 0.51
P 6,120
2
4.
(b)
Transferred in costs (4,000 x P50
Conversion costs: (4,000 x 40%) x P30
Cost of work in process, March 31
5.
P200,000
48,000
P248,000
(a)
Units completed (100%)
Units in process, end: (8,000 x 75%)
EUP conversion costs
6.
20,000
6,000
26,000
(a)
Equivalent units of production:
Materials:
Units in process, May 31: (100%)
EUP
12,000
8,000
20,000
Conversion costs:
Units in process, May 31: (8,000 75%)
EUP
12,000
6,000
18,000
Unit costs:
Transferred in cost:
Work in process, May1 (6,000 units)
Current cost (14,000 units)
Total
Divided by
Unit cost
Cost added:
Materials:
BWIP
Current cost
Total
EUP
Conversion costs:
BWIP
Current cost
Total
EUP
Total unit costs
P12,000
29,000
P41,000
20,000
P 2.05
P2,500
5,500
P8,000
20,000
P1,300
5,000
P6,300
18,000
0.40
0.35
P 2.80
Cost of units completed and transferred out: (12,000 x P2.80) P33,600
3
7.
8.
(d)
Equivalent production for labor:
Units transferred out to next department
Units in process, end; (1,400 x 30%)
EUP
7,200
420
7,620
Unit cost for labor:

BWIP
Current cost
Total
Divided by EUP
Unit cost
P 2,880
91,227
P94,107
7,620
P 12.35
Units transferred out: (7,200 x P12.35)
P88,920
(b)
Work in process, end: (420 x P12.35)
9.
10.
P 5,187
(a)
Equivalent production for materials:
Units in process, end (300 x60%)
EUP
6,700
180
6,880
Material unit cost:

BWIP
Current cost
Total material cost
Divided by EUP
Unit cost
P10,000
63,272
P73,272
6,880
P 10.65
Units transferred out: (6,700 x P10.65)
P71,335
Units in process, end: (180 x P10.65)
P 1,917
(a)
Direct materials:
Units in process, May 31: (120x 60%)
EUP
460
72
532
Conversion costs:
Units in process, May 31: (120 x 30%)
EUP
460
36
496
4
11.
(a)
Unit costs:
Materials:
Work in process, May 1
Current cost
Total material cost
EUP (per #10)
Unit cost
Conversion costs:
Work in process, May 1
Current cost
Total conversion costs
EUP (per #10)
Unit cost
Total unit cost
12.
P 49,336
322,000
P 371,336
532
P
698
P
P
P
P
9,104
139,200
148,304
496
299
997
Units completed: (460 x P997)
P458,620
Units in process, end:

Materials: (72 x P698)
Conversion cost: (36 x P299)
Total work in process
P 50,256
10,764
P 61,020
(a)
Direct materials:
Units completed
Units in process, July 31: (16,000 x100%)
EUP
34,000
16,000
50,000
Conversion costs:
Units completed
Units in process, July 31: (16,000 x 50%)
EUP
34,000
8,000
42,000
Unit Costs:
Materials:
Work in process, July 1
Current costs
Total material costs
EUP
Unit material cost
Conversion costs:
Work in process, July 1
Current costs
EUP
Unit conversion cost
P 60,000
280,000
P340,000
50,000
P
6.8
P 70,000
371,000
P441,000
42,000
P 10.5
5
13.
14.
(a)
Units completed: (34,000 x P17.30)
P588,200
Units in process, end:

Materials: (16,000 x P6.8)
Conversion costs: (8,000 x P10.5)
P108,800
84,000
P192,800
(a)
Materials:
Units completed and transferred out
Units in process, June 30
EUP
Conversion costs:
Units completed and transferred out
Units in process, June 30: (30 x 50%)
EUP
90
15
105
Unit Costs:
Transferred In:
Work in process, June 1
Current costs
Total
EUP: (40 + 80)
Unit cost
P 40,000
87,200
P127,200
120
P 1,060
Direct materials:
Current cost
Total
EUP
Unit cost
Conversion costs:
Current cost
Total
EUP
Unit cost
Total unit costs
15.
90
0
90
0
36,000
36,000
90
P
400
P 18,000
49,725
P 67,725
105
P
645
P 2,105
(d)
Units completed: (90 x P2,105)
P189,450
Units in ending WIP:

Transferred in cost; (30 x P1,060)
Costs added: CC (15 x P645)
P 31,800
9,675
P 41,475
6
16.
(a)
Materials:
Units completed
Work in process, July 31 (100%)
EUP
Conversion costs:
Units completed
Work in process, July 31 (70%)
EUP
17.
90
7
97
Unit Costs:
Materials:
BWIP
Current costs
Total material cost
EUP
Unit material cost
P1,800,000
8,000,000
P9,800,000
100
P 98,000
Conversion costs:
BWIP
Current cost
EUP
Unit conversion costs
Total unit costs
P 479,500
3,740,000
P4,219,500
97
P 43,500
P 141.500
(a)
Units completed: (90 x P141,500)
Units in process, ending:
Materials: (10 x P98,000)
Conversion costs: (7 x P43,500)
Total work in process, ending
18.
90
10
100
P12,735,000
P
980,000
304,500
P 1,284,500
(a)
Department X:
Units in process, May 1
Units started in process
Total units to account for
Units completed
Units still in process
500
15,000
15,500
(10,500)
5,000
Department Y:
Units in process, May 1
Transferred in from Department X
Units completed
Units still in process
300
8,000
8,300
(7,000)
1,300
7
19.
(a)
Materials:
Transferred out
EUP
50,000
20,000
70,000
Conversion Costs:
Transferred out
Work in process, June 30: (40% x 20,000)
EUP
50,000
8,000
58,000
Units Costs:
Materials:
BWIP
Current cost
Total
EUP
Unit material cost
Labor cost:
BWIP
Current cost
Total
EUP
Unit conversion cost
Overhead: (P15 x 70%)
Total unit costs
20.
P 187,500
1,212,500
P1,400,000
70,000
P
20.00
P
P
P
P
P
(a)
Cost of goods manufactured: (50,000 x P45.50)
Less: Finished goods inventory, June 30
Cost of goods sold
21.
P2,275,000
72,500
P2,202,500
(b)
Started in process/transferred in
Transferred out
Units still process, June 30
22.
53,750
816,250
870,000
58,000
15.00
10.50
45.50
Department 1
34,000
117,000
151,000
(132,500)
18,500
Department 2
33,000
132,500
165,500
( 131,200)
34,300
(b)
Units transferred out
Ending work in process
EUP
Materials
131,200
34,200 (100%)
165,500
Conversion Costs
131,200
25,725 (75%)
156,925
8
23.
(d)
Beginning work in process
Materials added
Conversion costs added
Total cost of units placed in process
Less: Ending work in process
Cost of units transferred out to finished goods
24.
P23,000
29,000
36,000
88,000
19,000
P69,000
(d)
Materials:
Transferred out
Ending work in process: (10,000 8,000) 100%
EUP
8,000
2,000
10,000
Conversion costs:
Transferred out
Ending work in process: (2,000 x 70%)
EUP
25.
8,000
1,400
9,400
Unit costs:
Materials: (P15,000 / 10,000)
Conversion costs: (P24,440 / 9,400)
Total unit costs
P1.50
2.60
P4.10
Costs of units transferred out to next dept.: (8,000 x P4.10)
P32,800
(d)
26.
(a)
Equivalent Units of Production
Transferred out
EUP
Unit Costs
Current costs
Total costs
EUP
Unit costs
Transferred Out:
27.
P3,000
3,640
P6,640
(d)
(10,000 + 80,000)
Materials
CC
85,000
85,000
5,000 (100%) 3,000 (60%)
90,000
88,000
Materials
P 30,000
88,000
P118,000
90,000
P 1.31
CC
P 16,000
50,000
P 66,000
88,000
P 0.75
P111,350
63,750
9
28.
(c)
Completed production
1
EUP
Unit Costs
Current costs
Total costs
EUP
Unit costs
29.
Materials
184,000
43,200 (90%)
227,200
Materials
P 54,560
468,000
P522,560
227,200
P
2.3
31.
P 99,360
57,600
P156,960
(c)
Completed and transferred out
EUP
Materials
92,000
21,600 (90%)
113,600
Unit Costs
Current costs
Total costs
EUP
Unit costs
Materials
P 54,560
468,000
P522,560
113,600
P 4.60
CC
92,000
9,600 (40%)
101,600
CC
P 35,560
574,040
P 609,600
101,600
P
6.00
(d)
Conversion costs: (9,600) x P6.00)
Cost of ending work in process
32.
CC
P 35,560
574,040
P609,600
203,200
P 3.00
(d)
Ending work in process:
Total costs of EWIP
30.
CC
184,000
9,200 (40%)
203,200
P 99,360
57,600
P156,960
(a)
Costs transferred in this month
Total costs transferred in
EUP: (8,900 + 30,100)
Transferred in unit cost
P 2,047
8,483
P10,530
39,000
P 0.27
10
33.
(a)
Materials:
Ending work in process (100%)
EUP
Unit material cost:
BWIP
Current costs
Total material cost
EUP
Unit material cost
34.
35.
29,000
10,000
39,000
P
267
1,683
P 2,950
39,000
P 0.05
(b)
Direct labor:
Ending work in process (10,000 x 75%)
EUP
29,000
7,500
36,500
Direct labor unit cost:

BWIP
Current costs
EUP
Direct labor unit cost
P1,495.20
7,994.80
P9,490.00
36,000
P 0.26
(a)
BWIP
Current costs, November
Total overhead costs
EUP (same as labor)
Overhead unit cost
P 534.00
2,021.00
P2,555.00
36,000
P
0.07
11
Solutions to Problems
Problem 11-1
1.
2.

Materials:
Units in process, end: (100%)
EUP
73,000
12,000
85,000
Conversion costs:
Units in process, end: (12,000 x 2/3)
EUP
73,000
8,000
81,000
Refining Department
Cost of Production Report
Month of January, 2010
Quantity Schedule
Started in process
Units to account for
Units
10,000
75,000
85.000
Transferred out
Total units accounted for
73,000
12,000
85,000
Cost Schedule
Materials:
BWIP
Current cost
Total
Conversion costs:
BWIP
Current cost
Total costs
Total costs to account for
Total Cost
Transferred out
Materials
Conversion costs
Total EWIP
Total costs accounted for
64,000
616,000
680,000
EUP
Unit Cost
85,000
P 8.00
81,000
5.44
P13.44
981,120
73,000
P13.44
96,000
43,520
139,500
P1,120,620
=
=
12,000
8,000
x
x
8.00
5.44
39,900
400,720
440,620
1,120,620
12
Problem 11-2
1.
2.

Materials:
Transferred out to next department
EUP
Labor:
Ending work in process (500 x 25%)
EUP
Overhead:
Ending wok in process (500 x 40$)
EUP
6,500
500
7,000
6,500
125
6,625
6,500
200
6,700
Processing Department
Month of April
Quantity Schedule
Transferred in
Total to account for
Units
1,000
6,000
7,000
Transferred out to finished goods

Total accounted for
6,500
500
7,000
Cost Schedule
Cost from prior department:
BWIP Last month
Transferred in This month
Total transferred in costs
Cost in this department:
Materials:
BWIP
Current month
Total materials
Labor:
BWIP
Current month
Total labor cost
Overhead:
BWIP
Current month
Total overhead cost
Total Cost
Transferred out
Cost from prior department
Costs this department:
Materials
Labor
Overhead
Total EWIP
*adjusted P1.00 for rounding
P 1,117,476*
EUP
Unit Cost
120,000
732,000
852,000
=
=
1,000
6,000
7,000
P121.714
24,000
90,000
114,000
7,000
16.286
25,060
107,440
132,500
6,625
20.00
6,700
13.919
P171.919
6,500
x P171.919
60,857
500
121.714
8,143
2,500
2,784
74,284
P 1,191,760
=
=
=
500
125
200
x
x
x
16.286
20.0
13.919
6,320
86,940
93,260
P 1,191,760
13
Problem 11-3
Ace Department First Department
Month of June, 2010
Materials:
EUP
106,000
8,000
114,000
Conversion costs:
Ending work in process, (8,000 units x 70%)
EUP
106,000
5,600
111,600
Ace Company First Department

Month of June 2010
Quantity Schedule
Started in process
Units
10,000
104,000
114,000

Total accounted for
106,000
8,000
114,000
Cost Schedule
Materials:
BWIP
Current month
Total materials
Conversion Cost:
Total Cost
BWIP
Current month
Total CC
54,000
491,724
545,724
P1,457,724

Materials
CC
Total EWIP
P1,366,339*
= 106,000
P12.89
64,000
27,384
91,385
P1,457,724
=
=
x
x
8.00
4.89
80,000
832,000
912,000
EUP
Unit Cost
114,000
P 8.00
111,600
4.89
P12.89
8,000
5,600
14
Problem 11-4
1.
2.
3.
Tan Corporation Shaping Department

Month of October 2010
Materials:
Units transferred out to finished goods
Units in ending work in process: (2,000 x 75%)
EUP
8,500
1,500
10,000
Conversion costs:
Units transferred out to finished goods
Units in ending work in process: (2,000 x 50%)
EUP
8,500
1,000
9,500
Tan Corporation Shaping Department

Month of October 2010
Quantity Schedule
Transferred in from prior department
Units to account for
Units
3,000
7,500
10,500
Transferred out
Total accounted for
8,500
2,000
10,500
Cost Schedule
BWIP
Current month
Total transferred in cost
Cost added this department:
Materials: BWIP
This month
Total material cost
CC:
BWIP
This month
Total CC
Total Cost
Transferred out
Materials
CC
P 62,000
253,000
315,000
EUP
Unit Cost
=
=
3,000
7,500
10,500
P30.00
10,000
11.40
9,500
29.40
P70.80
P601,800
8,500
P70.80
60,000
2,000
30.00
17,100
29,400
106,500
P708,300
=
=
1,500
1,000
x
x
11.40
29.40
31,200
82,800
114,000
52,700
226,600
279,300
P708,300
Work in process Finishing Department

601,800
Work in process Shaping Department
To record cost of units transferred to Finishing Department.
601,800
15
Problem 11-5
1.
Assembling Department
Computation of Equivalent Units of Production
Month of June 2010
Materials:
EUP
Labor:
EUP
Overhead:
EUP
2.
8,000
3,600
11,600
8,000
2,800
10,800
8,000
1,400
9,400
Assembling Department
Month of June 2010
Quantity Schedule
Units
2,000
10,000
12,000

Total units accounted for
8,000
4,000
12,000
Cost Schedule
BWIP
Cost this month
Total transferred in cost
Materials: BWIP
This month
Total material cost
Labor:
BWIP
This month
Total labor cost
Overhead: BWIP
This month
Total overhead cost
Total cost

Cost from preceding department
Materials
Labor
Overhead
Total ending work in process
P 32,000
160,000
192,000
EUP
Unit Cost
=
=
2,000
10,000
12,000
P16.00
11,600
10.00
10,800
4.00
9,400
P260,000
8,000
P32.50
64,000
4,000
16,00
36,000
11,200
3,500
114,700
P374,700
=
=
=
3,600
2,800
1,400
x
x
x
10.00
4.00
2.50
20,000
96,000
116,000
7,200
36,000
43.200
5,500
18,000
23,500
P374,700
2.50
P32.50
16
Problem 11-6
1.
2.
Mixing Department
Month of May 2010
Direct materials:
Transferred out to Bottling Department
EUP
75,000
9,000
84,000
Conversion costs:
Transferred out to bottling Department
Ending work in process (60% x 9,000)
EUP
75,000
5,400
80,400
Mixing Department
Month of May 2010
Quantity Schedule
Started in process
Units
8,000
76,000
84,000
Transferred out
Total accounted for
75,000
9,000
84,000
Cost Schedule
Direct materials:
BWIP
This month
Total material cost
Conversion costs:
BWIP
This month
Direct materials
Conversion costs
3.
Total Cost
P 1,680
18,480
20,160
EUP
Unit Cost
84,000
P0.24
80,000
0.45
P0.69
P51,750
= 75,000
P0.69
2,160
2,430
4,590
P56,340
=
=
x
x
0.24
0.45
4,020
32,160
36,180
P56,340
Work in process Bottling Department

Work in process Mixing Department
To record cost units finished transferred out.
9,000
5,400
51,750
51,750
17
Problem 11-6 (continued):

4.
Bottling Department
Month of May 2010
Direct materials:
EUP
68,000
- 0 68,000
Conversion costs;
Ending work in process (8,000 x 100%)
EUP
68,000
8,000
76,000
Bottling Department
Month of May 2010
Quantity Schedule
Units
8,000
75,000
83,000
Transferred out finished goods

Total accounted for
68,000
15,000
83,000
Cost Schedule
BWIP
This month
Conversion costs:
BWIP
This month
Total conversion cost
Conversion costs
5.
Total Cost
P 6,350
51,750
58,100
EUP
Unit Cost
=
=
8,000
75,000
83,000
P0.70
76,000
0.37
P1.07
P72,760
68,000
P1.07
10,500
15,000
0.70
2,960
13,460
P86,220
8,000
0.37
2,220
25,900
28,120
P86,220
Finished goods inventory

Work in process Bottling Department
To record cost of finished goods.
72,760
72,760
18
Problem 11-7
1.
2.

Dept. 1
Dept. 2
Materials:
Transferred out
EUP
45,000
10,000
55,000
43,000
9,000
52,000
Conversion costs:
Transferred out
Ending work in process (75%; 50%)
EUP
45,000
7,500
52,500
43,000
4,500
47,500
Department 1
Month of April 2010
Quantity Schedule
Started in process
Units
5,000
50,000
55,000

Total accounted for
45,000
10,000
55,000
Cost Schedule
Materials:
BWIP
This month
Total material cost
Conversion costs:
BWIP
This month
Total Costs

Materials
Conversion costs
P 12,000
65,000
77,000
EUP
Unit Costs
55,000
P 1.40
52,500 =
3.12
P 4.52
P203,400
45,000 x
P 4.52
14,000
23,400
37,400
P240,800
=
=
10,000 x
7,500 x
1.40
3.12
18,800
145,000
163,800
P240,800
19
Problem 11-7 (continued)

Department 2
Month of April 2010
Quantity Schedule
Units
7,000
45,000
52,000

Total accounted for
43,000
9,000
52,000
Cost Schedule
Cost from preceding department:
BWIP
This month
Materials: BWIP
This month
Total material cost
CC :
BWIP
This month
Total CC
Total Cost

Materials
Conversion costs
P 28,000
203,400
231,400
EUP
Unit Cost
=
=
7,000
45,000
52,000 =
52,000
47,500
2.75
P 8.35
P359,050
43,000
P 8.35
40,050
9,000
4.45
10,350
12,375
62,775
P421,825
=
=
9,000 x
4,500 x
1.15
2.75
14,800
45,000
59,800
20,625
110,000
130,625
P421,825
P 4.45
1.15
20
Problem 11-8
1.
Blending
Department
Materials:
Transferred out
Ending work in process: 100%; 85%
EUP
Conversion costs;
Transferred out
Ending work in process: 25%; 85%
EUP
2.
Finishing
Department
2,180
320
2,500
2,000
238
2,238
2,180
80
2,260
2,000
238
2,238
Orange Company
Month of March 2010
Blending Department
Finishing Department
Quantity Schedule
Started in process/transferred in
Units
200
2,300
2,500
Units
100
2,180
2,280
Transferred out
Total accounted for
2,180
320
2,500
2,000
280
2,280
Cost Schedule
Transferred in from prior department:
BWIP
This month
Materials: BWIP
This month
Total material costs
C. Costs:
Total Costs
P
8,000
100,000
108,000
Unit costs
P
Total Costs
Unit Costs
P 15,188
339,971
355,159
P155.77
43.20
1,641
42,000
43,641
19.50
33.53
P208.80
BWIP
This month
47,215
207,600
254,815
P362,815
112.75
P155.95
1,840
73,200
75,040
P473,840
Transferred out
Materials
Conversion costs
P339,971
P155.95
417,603*
P208.80
43,616
155.77
13,824
9,020
22,844
43.20
112.75
4,641
7.980
56,237
19.50
33.53
P362,815
P473,840
21
*P3 difference due to rounding
Problem 11-9
a.
Striping Department:
Beginning work in process inventory
Current costs:
DM
DL
Overhead (P80,000 x 80%)
Total
Less ending work in process inventory
Costs transferred to Adhesion
b.
P 20,000
90,000
80,000
64,000
P254,000
17,000
P237,000
Adhesion Department:
Let CC = conversion costs
BWIP + TI + DM + CC - To = EWIP
P70,000 + P237,000 + P22,600 + CC - P480,000 = P20,600
CC - P150,000 = P20,600
CC = P171,000
DL + OH = CC
DL + .80DL = CC
1.80DL = P171,000
DL = P95,000
OH = P95,000 x .80 = P76,000
c.
Cost of goods manufactured is equal to the cost of goods transferred to finished goods
(P880,000).
OH = .80 DL
P90,000 = .80 DL
DL = P112,500
BWIP + TI + DM + DL + OH - CGM = P40,000
P150,000 + P480,000 + DM + P112,500 + P90,000 - P880,000 = P40,000
DM - P47,500 = P40,000
DM = P87,500
d.
Work in process inventory Adhesion

Work in process inventory Striping
237,000
Work in process inventory Packaging

Work in process inventory Adhesion
480,000

Work in process inventory Packaging
880,000
Cost of goods sold
720,000
237,000
480,000
880,000
22
720,000

Answers To Multiple Choice - Theoretical: 1. B 5. C 9. C 2. D 6. C 10. A 3. D 7. D 11. A 4. B 8. D 12. B

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Answers To Multiple Choice - Theoretical: 1. B 5. C 9. C 2. D 6. C 10. A 3. D 7. D 11. A 4. B 8. D 12. B

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Solutions to Multiple Choice Computational

Cost of units completed and transferred out: (12,000 x P2.80) P33,600

Unit cost for labor:

Units transferred out: (7,200 x P12.35)

Material unit cost:

Units transferred out: (6,700 x P10.65)

Units in process, end: (180 x P10.65)

Units completed: (460 x P997)

Units in process, end:

Units in process, end:

Units in ending WIP:

Costs of units transferred out to next dept.: (8,000 x P4.10)

Direct labor unit cost:

Equivalent Units of Production:

Equivalent Units of Production

Transferred out to finished goods

Ace Company First Department

Transferred out to next department

Transferred out to next department

Tan Corporation Shaping Department

Tan Corporation Shaping Department

Work in process Finishing Department

Completed and transferred out

Completed and transferred out

Work in process Bottling Department

Problem 11-6 (continued):

Transferred out finished goods

Finished goods inventory

Equivalent Units of Production

Transferred out to next department

Transferred out to next department

Problem 11-7 (continued)

Transferred out to finished goods

Transferred out to finished goods

Equivalent Units of Production

Total costs accounted for

Work in process inventory Adhesion

Work in process inventory Packaging

Finished goods inventory

Cost of goods sold

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