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Problem 10-10
1. Equivalent Units of Production
Trimming Assembly Finishing
Department Department Department
Materials:
Transferred out 5,400 5,000 4,800
Work in process, end 600 380 160
EUP 6,000 5,380 4,960
Labor:
Transferred out 5,400 5,000 4,800
Work in process, end 360 300 180
EUP 5,760 5,300 4,980
Overhead:
Transferred out 5,400 5,000 4,800
Work in process, end 360 340 160
EUP 5,760 5,340 4,960
2. Trimming Department
Cost of Production Report
Month of June, 2010
Quantity Schedule Units
Started in process 6,000
Transferred out to next department 5,400
Work in process, end 600
Total accounted for 6,000
Cost Schedule Total Cost EUP Unit Cost
Materials P33,600 ÷ 6,000 = P 5.60
Labor 18,500 ÷ 5,760 = 3.21180
Overhead 9,217 ÷ 5,760 = 1.60017
Total costs to account for P61,317 P10.41197
Transferred out to next department P56,225 = 5,400 x P10.41197
Work in process, end:
Materials 3,360 = 600 x 5.60
Labor 1,156 = 360 x 3.21180
Overhead 576 = 360 x 1.60017
Total work in process 5,092
Total costs accounted for P61,317
Assembly Department
Cost of Production Report
Month of June, 2010
Quantity Schedule Units
Transferred in from prior department 5,400
Transferred out to next department 5,000
2
Work in process, end 400
Total accounted for 5,400
Cost Schedule Total Cost EUP Unit Cost
Transferred in cost P56,225 ÷ 5,400 = P10.41203
Cost added this department:
Materials 16,786 ÷ 5,380 = 3.12007
Labor 14,840 ÷ 5,300 = 2.80
Overhead 7,120 ÷ 5,340 = 1.33333
Total costs to account for P94,971 P17.66543
Transferred out to next department P88,328* = 5,000 x P17.66543
Work in process, end:
Transferred in cost 4,164 = 400 x 10.41203
Cost added this department:
Materials 1,186 = 380 x 3.12007
Labor 840 = 350 x 2.80
Overhead 453 = 340 x 1.33333
Total work in process 6,643
Total costs accounted for P94,971
P1 difference due to rounding
Finishing Department
Cost of Production Report
Month of June, 2010
Quantity Schedule Units
Transferred in from prior department 5,000
Transferred out to finished goods 4,800
Work in process, end 200
Total accounted for 5,000
Cost Schedule Total Cost EUP Unit Cost
Transferred in cost from prior dept. P 88,328 ÷ 5,000 = P17.66560
Cost added this department:
Materials 6,400 ÷ 4,960 = 1.29032
Labor 10,320 ÷ 4,980 = 2.07228
Overhead 4,960 ÷ 4,960 = 1.00
Total costs to be accounted for P110,008 P22.02820
Transferred out to finished goods P105,735 = 4,800 x P22.02920
Work in process, end:
Transferred in cost 3,533 = 200 x 17.66560
Cost added this department:
Materials 207 = 160 x 1.29032
Labor 373 = 180 x 2.07228
Overhead 160 = 160 z 1.00
Total work in process 4,273
Total costs accounted for P110,008
3a. Work in process – Trimming Department 61,317
Work in process – Assembly Department 38,746
Work in process – Finishing Department 21,680
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Materials 56,786
Factory payroll 43,660
Factory overhead control 21,297
To record manufacturing costs.
3b. Work in process – Assembly Department 56,225
Work in process – Trimming Department 56,225
To record transfer of goods from Trimming to
Assembly Department.
3c. Work in process – Finishing Department 88,328
Work in process – Assembly Department 88,328
To record transfer of goods from Assembly
To Finishing Department.
3c. Finished goods I 105,735
Work in process – Finishing Department 105,735
To record completion of finished goods.
