Process Costing 5.

7.

8.

11.

12. Refer to 11

13.

5. Barnet Company adds materials at the beginning of the process Department M. Conversion costs were 75% complete as to the 8,000 units in WIP on May 1, and 50% complete as to the 6,000 units in WIP on May 31. During May, 12,000 units were completed and transferred to the next department. An analysis of the costs relating to WIP on May 1 and to production activity for May is as follows: Materials Conversion WIP, May 1 P 9,600 P 4,800 Cost added in May 15,600 14,400 The total cost per equivalent unit for May using the FIFO method was a. P2.68 b. P3.16 C. P 3.20 d. P2.70 7. The following production information for Dept. B of Zenith products is for the month of May 2020: Received from Department A 600,000 units Completed and transferred to Dept. C 500,000 units Additional information: a. No beginning work in process b. Ending work in process is 75% complete C. May's production costs totaled P2,760,000 Department B's unit cost of production for May 2020 is: a. P 4.60 b. P4.80 CP 5.02 d. P 5.52 8. The Glamorous Corporation manufactures only one product in which the raw material must pass through Processes A, B and C, in that order, before completion. Inventories of Process C and of Finished Goods on Oct 1 were as follows: Process C: 1,200 units, 2/3 completed, P4,200 Finished goods: 1,000 units at P3.00 per unit During October, the following transactions were completed: 2,000 units with a value of P5,000 were transferred from Process B Direct labor applied to Process C during October was P3,100 - Overhead costs fr October applied to Process C were P3,200 Inventories on October 31 are as follows: Process C: 600 units, y completed Finished goods: 1,300 units Using the FIFO method, the value of the process C inventory in process for October 3 is. a. P4,200 b. P3,500 C. P5,400 d. P2,400 11. The plant manager of Arena Products Co. gathered production statistics for October 2020 as follows: WIP, beginning: 8,000 units (all materials, converted) Materials costs, P7 968 labor and overhead costs, P8,592 Placed in process, Oct 40,000 units, material costs, P48,000; labor and overhead costs, P79,872 Completed and transferred: 42,000 units WIP, ending: 6,000 units (all materials, 3/5 converted) Using the FIFO method, the cost of the completed units would be: a. P130,452 b. P130,320 C P127,872 d. P144,432 12. Using the same information in no. 11, and assuming that the average method was used, how much would be the cost of the completed units? a. P130,452 b. P130,320 C. P127,872 d. P144.432 13. Dex Co. had the following production for the month of June: Work in process, June 1 10,000 Started during June 40,000 Completed and transferred to finished goods during June 33,000 Abnormal spoilage incurred 2,000 Work in process, June 30 15,000 Materials are added at the beginning of the process. As to conversion cost, the beginning work in process was was 70% completed and the ending work in process was 60% completed. Spoilage is detected at the end of the process. The equivalent units for June, with respect to conversion costs, using the FIFO method is: a. 44,000 b. 42,000 C. 37,000 d. 35,000