DON HONORIO VENTURA
STATE UNIVERSITYCOST
ACCOUNTINGApril 14,
2020PROCESS
COSTING(PROBLEMS)
DON HONORIO VENTURA
STATE UNIVERSITYCOST
ACCOUNTINGApril 14,
2020PROCESS
COSTING(PROBLEMS)1.The
Blondie Dye Company manufactures
hair rinses and colourings. Direct
materials areintroduced into
production at the 50% stage of
completion in Department A. Direct
labor andfactory overhead are
incurred evenly throughout the
process. Because of the timing of
certainchemical processes, units are
often at different stages of
completion.Management uses the fifo
costing method in an effort to analyze
costs.Beginning units in process in
Department A for May were at the
following stages of completion.40% of
the units were 10% complete.15% of
the units were 40% complete.20% of
the units were 55% complete.25% of
the units were 70%
complete.Beginning units in process
amounted to 26,000 units, with a total
costs of P37,700.During May, 68,000
units were started in process. The
following costs were incurred:
directmaterials, P47,092; direct labor,
P34,658; and factory overhead,
P51,987.Ending units in process for
May amounted to 6,000 units. They
were at the following stages
ofcompletion:35% of the units were
25% complete.50% of the units were
45% complete.10% of the units were
75% complete.5% of the units were
95% complete.There were no spoiled
units during the month.Determine the
cost of work in process inventory
ending.a.P4,565.50b.P3,825.25c.P4,2
50.75d.P3,354.75Answer:MaterialsLa
borOverheadFinished and transferred
out88,00088,00088,000In process,
end:35% x 6,000-52552550% x
6,000-1,3501,35010% x
6,0006004504505% x
6,000300285285In process,
beginning:40% x 26,000-( 1,040)(
1,040)15% x 26,000-( 1,560)(
1,560)20% x 26,000( 5,200)( 2,860)(
2,860)25% x 26,000( 6,500)( 4,550)(
4,550)77,20080,60080,600CostP47,0
92P34,658P51,987Unit
costP0.61P0.43P0.645Cost
accounting:In process, end = Materials
(900 x 0.61)P549Conversion costs
(2,610 x 1.075)2,805.75P3,354.75D
1.The Blondie Dye Company
manufactures hair rinses and
colourings. Direct materials
areintroduced into production at the
50% stage of completion in
Department A. Direct labor
andfactory overhead are incurred
evenly throughout the process.
Because of the timing of
certainchemical processes, units are
often at different stages of
completion.Management uses the fifo
costing method in an effort to analyze
costs.Beginning units in process in
Department A for May were at the
following stages of completion.40% of
the units were 10% complete.15% of
the units were 40% complete.20% of
the units were 55% complete.25% of
the units were 70%
complete.Beginning units in process
amounted to 26,000 units, with a total
costs of P37,700.During May, 68,000
units were started in process. The
following costs were incurred:
directmaterials, P47,092; direct labor,
P34,658; and factory overhead,
P51,987.Ending units in process for
May amounted to 6,000 units. They
were at the following stages
ofcompletion:35% of the units were
25% complete.50% of the units were
45% complete.10% of the units were
75% complete.5% of the units were
95% complete.There were no spoiled
units during the month.Determine the
cost of work in process inventory
ending.a.P4,565.50b.P3,825.25c.P4,2
50.75d.P3,354.75Answer:MaterialsLa
borOverheadFinished and transferred
out88,00088,00088,000In process,
end:35% x 6,000-52552550% x
6,000-1,3501,35010% x
6,0006004504505% x
6,000300285285In process,
beginning:40% x 26,000-( 1,040)(
1,040)15% x 26,000-( 1,560)(
1,560)20% x 26,000( 5,200)( 2,860)(
2,860)25% x 26,000( 6,500)( 4,550)(
4,550)77,20080,60080,600CostP47,0
92P34,658P51,987Unit
costP0.61P0.43P0.645Cost
accounting:In process, end = Materials
(900 x 0.61)P549Conversion costs
(2,610 x 1.075)2,805.75P3,354.75D