CHAPTER 13.doc

1

CHAPTER 13 Answers to Multiple Choices – Theoretical 1. 2. 3. ". $.

b a c b a

6. 7. !. #. 1%.

b  b a c

&olutions to Multiple Choices – Co'putational 1.

()

Transferred Out to next department (100%)  Normal lost units (100%) Ending work in process (100%) E*P – Materials 2.

(a)

Transferred Out! "rom #$&! ( (0,000 x '0%) "rom &! (5 ( 55,000 * 0,000) 100%  Normal lost units (100%) Ending work in process! ( (5,000 x 50%) E*P – Con,ersion cost 3.

+,000 15,000 1+,500 6#+$%%

,000 +,000

,000 1,500 ,'00 12+#%%

(a)

Transferred Out  Normal lost units Ending work in process E*P – Con,ersion costs $.

1,000 5,000

(b)

Transferred Out! "rom #$&! (5 (5,000 x '0%) "rom T! (1,000 * 5,000)  Normal lost units (,000 x +5%) Ending work in process! (-,000 x '0%) E*P – Con,ersion costs ".

55,000 15,000 5,000 1%$+%%%

1,000 1,500 ,'00 1$+#%%

(c )

Transferred n cost! (-0 x &1.50) /ost added tis department! aterials! (-0 x &2) /on3ersion costs! (+ x &1.+5) Cost o- lost units

& ',-0.00 ,2-.5 +,+50.00 P16+$"6.2$

 6.

7.

(c )

/ost of normal lost units! (&,250 x 20041,00)

&1,00

Allo Alloca cate te  to En Eni in n /or0 or0 in Pro Process cess (P21 (P21+# +#%% %%  "+!% "+!%% %16 16+! +!%% %%))

P6+2 P6+2$7 $7.1 .1" "

(c )

 EUP Transferred Out Ending work in process  Normal spoiled units E&

!.

Actual Units +,000 ,000 1,000

&.00 5.00 &2.00

Cost o- units trans-erre out (7 (7+%%%  P!)

P$6+%%%

(c )

,000 ,000 ,000 ""+%%%

(a)

/ompleted and transferred out Ending work in process! (2,000 x 100%) E*P – Materials 11.

25,000 '5,000 10,000 1"%+%%%

(b)

Transferred Out to finised goods (100%) Ending work in process! (15,000 x -0%) 67normal lost units! (,000 x 100%) E*P – Con,ersion costs 1%.

Conversion +,000 1,000 1,000 ,000

Unit costs: aterials! (&0,000 4 10,000) /on3ersion costs! (&'5,000 4 ,000) Total unit costs

Transferred Out to next department (100%) Ending work in process (100%)  Normal lost units (10,000 x 100%) E*P – Materials #.

Materials +,000 ,000 1,000 10,000

+,000 2,000 !%+%%%

(b)

aterials in #$& aterials added during mont Total 8i3ided 79 E& *nit 'aterial cost

& -2,000 100,000 &1-2,000 : 20,000 P 2.1%

 12.

(a)

Transferred Out to next department Ending work in process (00 x '0%) ;ost units! (-00 x 100%) E*P – 4abor 13.

,-00 20 -00 1%+2!%

(a)

;a7or cost in #$& ;a7or cost incurred during te mont Total la7or costs 8i3ided 79 E& *nit labor cost 1".

(a)

Transferred Out to next department! "rom #$&! ('00 x 50%) "rom &! (,-00 * '00) Ending work in process! (00 x '0%) ;ost units E*P – 4abor 1$.

,000 15,000 12,000 (1+,50) ( '50) 3%%

,000 15,000 12,000

(a)

T costs last mont in #$& T costs * current mont Total 8i3ided 79 E& *nit T5 costs 1!.

,'00 20 -00 1%+%!%

(a)

#eginning $& Transferred n E&ui3alent nits of &roduction * aterials! /ompleted and transferred out Ending $& (100%) 67normal lost units (100%) E& * aterials

10,000 ,+5 5 1,000

*nit 'aterial costs (P6%+%%%  P3%"+%%%)  13+%%%

P

2!

(a)

5 units x &2 = P7%% 23.

(a)

#eginning $& Transferred n nits added E*P

500 11,000 5,000 16+$%%

Or! Transferred Out (100%) Ending $& (100%) E*P – T5 costs 2".

(b)

Transferred n costs * #$& Transferred n costs * /urrent mont Total T costs 8i3ided 79 E& *nit T5 costs 2$.

15,500 1,000 16+$%%

(c)

1,000 units x &1 =

P12+%%%

& ,000 1-5,000 &12,000 : 1-,500 P 12

5 26.

(c)

Transferred Out to next department! "rom #$&! (500 x 0%) "rom T! (,00 * 500) Ending $&! (50 x 100%)  Normal lost units! (50 x 100%) E*P – Materials 27.

or the Month o- March 2%1% Quantity Schedule #eginning $& tarted in &rocess Total to account for

/ompleted and transferred out! "rom #$& "rom & Ending $&  Normal spoilage 67normal spoilage Total accounted for Cost Schedule #eginning $& /osts added in current mont! 8irect materials /on3ersion costs Total costs to account for

Costs accounted for as follows: /ompleted and transferred Out! "rom #$&! /ost last mont /ost added tis mont! 8irect materials /on3ersion costs Total #$& "rom & Normal spoilage Total cost of units transferred out Ending work in process!   8irect materials /on3ersion costs Total E$& Total costs accounted for

Units 10,000 +',000 2',000

10,000 51,000

-1,000 15,000 -,+10 1,0 2',000

otal Costs & 50,000

1,'20,000 ',000 &,-+,000

!U"

: :

Unit Costs

+',000 = +2,500 =

&0 1 &

& 50,000 0 0,000 '0,000 1,-,000 1',+0 ,12-,+0

00,000 1'',000 ''',000 &,-+,000

=

+,500

x

&1

= =

51,000 x -,+10 x

 

= =

15,000 x 1,000 x

0 1

' Proble' 13:!