PROCESS COSTING INCREASE AND LOSS STUDENTS.docx

PROCESS COSTING – FIFO METHOD: INCREASE AND LOSS IN UNITS

NAME: ME: ___ _______ ______ ____ ____ ____ ___ _____ ______ ____ ____ ____ ____ __ SCORE: _________________  _________________ 

SECTI ECTION ON:: ___ _______ ______ ____ ____ ____ ____ ___ _____ ______ ____  __ 

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Direction: Analyze the following problem! "rite the letter of yo#r anwer on the pa$e pro%i&e& before the n#mber! n#mber! 'ro%i&e the ne$eary ol#tion for ea$h item! SOLUTION FOR EACH ITEM IS REQUIRED !

(e) Co! ha& the following pro&#$tion pro&#$tion for the month of *#ne: "or, in pro$e at *#ne 1 Starte& &#ring *#ne Complete& an& tranferre& to 0nihe& goo& &#ring *#ne Abnormal poilage in$#rre& "or, in pro$e at *#ne -

+nit 1-.--/-.--.--2.--13.---

Material are a&&e& at the beginning of the pro$e! A to $on%erion $ot. the beginning wor, in pro$e wa 4-5 $omplete& an& the en&ing wor, in pro$e wa 6-5 $omplete&! Spoilage i &ete$te& at the en& of the pro$e! 1! +n&er 7I7O 7I7O metho&. the the e8#i%alent e8#i%alent #nit #nit for *#ne. with with repe$t repe$t to $on%erion $on%erion $ot. $ot. a! //.--b! 3.--$! /2.--&! 4.--e!

f! SOLUTION: g! h! i!  9! ,! l! m. Anser t!e "o##oin$ %&estions &sin$ &sin$ t!e in"orm'tion (e#o: n! 7ih 7illet 7illet In$orpora In$orporate& te& obtain obtain 0h an& then pro$ee pro$ee them into frozen 0llet 0llet an& then prepare the frozen 0h 0llet for &itrib#tion to it retail ale &epartment! (ire$t material are a&&e& at the beginning of the $y$le! Con%erion $ot are in$#rre& e%enly thro#gho#t the pro&#$tion $y$le! efore inpe$tion. ome 0llet are poile& &#e to non&ete$tible &efe$t! Inpe$tion o$$#r when #nit are 3-5 $on%erte&! Spoile& 0llet generally $ontit#te !35 of the goo& 0llet! (ata for April 2-12 are a follow: o!

p! "I'. beginning in%entory /;1;2-12 8! (ire$t ma material =1 =1--5 $omplete> te> r! Con%erion $o $ot =3 =3-5 $omplete> t! Starte Starte& & &#ring &#ring April April



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All material are a&&e& at the tart ofNUM*ERS pro&#$tion an& the inpe$tion point i at the en& SOLUTION FOR TO /0: of the pro$e! 3! Refer to *one Company! "hat are e8#i%alent #nit of pro&#$tion for material #ing 7I7O a!