WESTERN LEYTE COLLEGE

College of Accountancy and Business

COST ACCOUNTING AND CONTROL
Quiz on Process Costing
Problem 1: REQUIREMENT- Compute for the Equivalent production for materials
and conversion costs using (a) Weighted Average method and (b) FIFO method
for Letter A, B, and C.

A. (4pts)
In process, beginning (60% incomplete) 6,000 units
Received from preceding department 44,000 units
Completed and transferred 40,000 units
In process, end (30% complete) 5,000 units
Materials in this department are added at the end of the process after
quality control inspection.
ANSWER:
WAVE:
Materials: 40,000
Conversion: 46,500
FIFO:
Materials: 40,000
Conversion: 44,100

B. (4pts)
In process, beginning (30% complete) 10,000 units
Received from preceding department 30,000 units
Completed and transferred 32,000 units
In process, end (40% complete) 6,000 units
Lost units (normal-discovered at the beginning) 2,000 units
Materials in this department are added 100% at the beginning.
WAVE:
Materials: 38,000
Conversion: 34,400
FIFO:
Materials: 28,000
Conversion: 31,400

C. (4pts)
In process, beginning (50% complete) 5,000 units
Received from preceding department 25,000 units
Completed and transferred 22,000 units
In process, end (80% complete) 5,000 units
Lost units (abnormal-discovered when 60% completed) 3,000 units
Materials in this department are added 100% at the beginning of the process
WAVE:
Materials: 30,000
Conversion: 27,800
FIFO:
Materials: 25,000
Conversion: 25,300
PROBLEM 2
The following information is available for Fatima Company for April:
Started this month 80,000 units
Beginning WIP (40% complete) 7,500 units
Normal spoilage (discrete) 1,100 units
Abnormal spoilage 900 units
Ending WIP (70% complete) 13,000 units
Transferred out 72,500 units
Beginning Work in Process Costs:
Material P10,400
Conversion 13,800
Current Costs:
Material P120,000
Conversion 350,000
All materials are added at the start of production and the inspection point
is at the end of the process.

Question 1: What are equivalent units of production for material using FIFO?
a. 80,000 c. 78,900
b. 79,100 d. 87,500
Question 2: What are equivalent units of production for conversion costs
using FIFO?
a. 79,700 c. 81,100
b. 79500 d. 80,600
Question 3: What are equivalent units of production for material using
weighted average?
a. 86,600 c. 86,400
b. 87,500 d. 85,500
Question 4: What are equivalent units of production for conversion costs
using weighted average?
a. 83,600 c. 82,500
b. 82,700 d. 81,600
Question 5: What is cost per equivalent unit for material using FIFO?
a. P1.63 c. P1.50
b. P1.37 d. P1.56
Question 6: What is cost per equivalent unit for conversion costs using FIFO?
a. P4.000 c. P4.34
b. P4.19 d. P4.38
Question 7: What is cost per equivalent unit for material using weighted
average?
a. P1.49 c. P1.56
b. P1.63 d. P1.44
Question 8: What is cost per equivalent unit for conversion costs using
weighted average?
a. P4.19 c. P4.55
b. P4.41 d. P4.35
Question 9: What is the cost assigned to ending inventory using FIFO?
a. P75,920 c. P56,420
b. P58,994 d. P53,144
Question 10: What is the cost assigned to abnormal spoilage using FIFO?
a. P1,350 c. P5,256
b. P3,906 d. P6,424
Question 11: What is the total cost assigned to goods transferred out using
weighted average?
a. P435,080 c. P428,656
b. P429,824 d. P423,400
PROBLEM 3.
The following information is available for Jorralyn Company for the current
year:
Beginning Work in Process (75% complete) 14,500 units
Started 75,000 units
Ending Work in Process (60% complete) 16,000 units
Abnormal spoilage 2,500 units
Normal spoilage (continuous) 5,000 units
Transferred out 66,000 units

Costs of Beginning Work in Process:

Material P25,100
Conversion 50,000
Current Costs:
Material P120,000
Conversion 300,000
All materials are added at the start of production.
Question 1: Using weighted average, what are equivalent units for material?
ANSWER: 84,500
Question 2: Using weighted average, what are equivalent units for conversion
costs?
ANSWER: 78,100
Question 3: What is the cost per equivalent unit for material using weighted
average?
ANSWER: 1.72
Question 4: What is the cost per equivalent unit for conversion costs using
weighted average?
ANSWER: 4.48
Question 5: Using FIFO, what are equivalent units for material?
ANSWER: 70,000
Question 6: Using FIFO, what are equivalent units for conversion costs?
ANSWER: 67,225
Question 7: Using FIFO, what is the cost per equivalent unit for material?
ANSWER: 1.71
Question 8: Using FIFO, what is the cost per equivalent unit for conversion
costs?
ANSWER: 4.46

PROBLEM 4 (5 pts) –(with application of EWIP considered as good units)

Irish Company employs process cost system. A unit of product passes
through two departments: Assembly and Finishing before it is complete.
Information regarding Assembly Department follow:
Work in-process, Aug 1 4,000 units
Spoiled units 3,000
Started in Production 26,000
Transferred out 24,000
Raw materials are added at the beginning of processing in the Assembly
department without changing the number of units being processed. Work in
Process on August 1 was 90% complete as to conversion while 80% converted on
August 31. In the Assembly Department, inspection takes place when the units
are 75% converted. The company usually experienced a 5% loss based on the
completed units. Cost data for the month of August follow:
Materials Labor Overhead
Work in-process beginning P32,400 P26,400 P28,500
Current cost P111,600 P88,200 P114,750
Using Weighted Average Costing, compute Total cost of units transferred-out
and total cost of work in process, end
TO: 343,684
EWIP:37,376

THEORY
1. What is the best cost accumulation procedure to use when a single product
is manufactured in a continuous process?
a. Process c. Standard
b. Job order d. Actual
2. Process costing is used in companies that
a. Engage in road and bridge construction
b. Produce sailboats made to customer specifications
c. Produce hollow blocks for sale to the public
d. Construct houses according to customer plans
3. The FIFO method of process costing differs from the average method in that
the FIFO method
a. Considers the stage of completion of beginning work in process
inventory in computing equivalent units of production, but the average
method does not
b. Does not consider the stage of completion of beginning work in
process inventory in computing equivalent units of production, but the
average method does
 c. Is applicable only to those companies using the FIFO inventory
pricing method, but the average method may be used with any inventory
pricing method
d. Allocates costs based on whole units, but the average method uses
equivalent units
4. The average and FIFO process costing methods differ in that the average
method:
a. Can be used under any cost flow assumption
b. Is much more difficult to apply than the FIFO method
c. Requires that ending work in process inventory be stated in terms of
equivalent units of production
d. Does not consider the degree of completion of beginning work in
process inventory when computing equivalent units of production
5. Current period’s cost per equivalent unit under FIFO process costing
considers current period costs
a. Only c. Less cost of beginning WIP
b. Plus cost of beginning WIP d. Plus cost of ending WIP
6. Equivalent units of production are equal to the
a. Units completed by a production department in the period
b. Number of units worked on during the period by a production
department
c. Number of whole units that could have been completed if all work of
the period had been used to produce whole units
d. Identifiable units existing at the end of the period in a production
department
7. In a process costing system using the weighted average method, cost per
equivalent unit for a given cost component is found by dividing which of the
following by EUP?
a. Only current period cost
b. Current period cost plus the cost of beginning inventory
c. Current period cost less the cost of beginning inventory
d. Current period cost plus the cost of ending inventory
8. In a cost of production report using process costing, transferred-in costs
are similar to the
a. Cost of material added at the beginning of production
b. Conversion cost added during the period
c. Cost transferred out to the next department
d. Cost included in beginning inventory
9. How should normal spoilage be handled?
a. Product costs c. Allocated between CGS and Expenses
b. Period costs d. Ignore
10. How should abnormal spoilage be handled?
a. Product costs c. Allocated between CGS and Expenses
b. Period costs d. Ignore
BONUS ITEM:
Beyond Borders Corporation operates two departments in its operations, namely
Department I and Department II. Inventories, cost, and production data for
the month of March, 2019 are as follows:
QUANTITY: Dept I Dept II
Units in-process, beginning 6,000 5,000
Stage of completion 2/3 3/5
Started in process 44,000 -
Units transferred out 40,000 37,000
Units in-process, ending ? ?
Stage of completion 3/5 7/8
COST:
In process, beginning P5,200 P10,000
Added this month:
Materials 19,800 34,799
Labor 14,200 27,470
Overhead 2,600 18,450
Conversion costs are applied evenly in all the departments. Materials are
applied as follows:
Dept I – all at the START of the process; DEPT II – 30% at the START, 40% at
MID-POINT, and 30% at the END of the process.

REQUIRED:
Compute for the Equivalent Units of Production under FIFO Costing. (5 pts)