College of Business Education

Cost Accounting & Control II

S.Y. 2021 – 2022
LECTURE #13 - ANSWER KEY
REQUIREMENTS
PROBLEM 1 PROBLEM 2

Angeles Mfg. Co Marilao Mfg. Co

Quantity Schedule Quantity Schedule
October 2018 September 2018

Department II DEPARTMENT Y

Input: Input:
IP Beg 2,000 IP Beg 6,000
Received 40,000 Received 40,000
Increase 10,000 Increase 8,000 Conversion Costs Materials
TUTBAF 52,000 Even Application TUTBAF 54,000 Even Application Uneven Application
Output: Actual % EUP Output: Actual % EUP % EUP
TO 49,000 IP Beg, F & T 2,000 1/4 500 TO 49,000 IP Beg, F & T 6,000 1/3 2,000 0% -
Received, F & T 47,000 100% 47,000 Received, F & T 43,000 100% 43,000 100% 43,000
IP, End 3,000 IP, End 3,000 1/5 600 IP, End 5,000 IP, End 5,000 2/5 2,000 100% 5,000
TUAF 52,000 Total 52,000 48,100 TUAF 54,000 Total 54,000 47,000 48,000

JOURNAL ENTRIES: JOURNAL ENTRIES:

1 WIP - Dept II 91,390.00 1 WIP - Dept B 80,900.00

Materials 48,100.00 Materials 48,000.00
Payroll 28,860.00 Payroll 23,500.00
Applied FOH 14,430.00 Applied FOH 9,400.00
# #

2 FG 189,750.00 2 FG 161,000.00
WIP-Dept II 189,750.00 WIP-Dept B 161,000.00
# #

WIP - Department II WIP - Department Y

Beg. Balance 5,500.00 189,750.00 TO Beg. Balance 22,000.00 161,000.00 TO
M, L & FOH 91,390.00 M, L & FOH 80,900.00
Transferred In 100,000.00 Transferred In 72,000.00
Total 196,890.00 189,750.00 Total Total 174,900.00 161,000.00 Total
Ending Balance 7,140.00 Ending Balance 13,900.00

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 Angeles Mfg. Co Marilao Mfg. Co
Cost of Production Report Cost of Production Report
October 2018 September 2018

Department II DEPARTMENT Y

COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost
Costs added this month: Costs added this month:
M 48,100.00 48,100 1.00 M 48,000.00 48,000 1.00
L 28,860.00 48,100 0.60 L 23,500.00 47,000 0.50
FOH 14,430.00 48,100 0.30 FOH 9,400.00 47,000 0.20
Total 91,390.00 1.90 Total 80,900.00 1.70
Cost, Beg 5,500.00 Cost, Beg 22,000.00
Transferred In Cost 100,000.00 50,000 2.00 Transferred In Cost 72,000.00 48,000 1.50
TOTAL 196,890.00 3.90 TOTAL 174,900.00 3.20

COSTS ACCOUNTED FOR AS FOLLOWS: COSTS ACCOUNTED FOR AS FOLLOWS:

TO: 49,000 units TO: 49,000 units
IP Beg, F & T: 2,000 units IP Beg, F & T: 6,000 units
Cost, Beg 5,500.00 Cost Beg 22,000.00
Cost added: Cost added:
M 500.00 M (0 x 1.00) -
L 300.00 L (2,000 x 0.50) 1,000.00
FOH 150.00 FOH (2,000 x 0.20) 400.00
6,450.00 23,400.00
Received, F & T: 47,000 units Received, F & T: 43,000 units
183,300.00 (43,000 x 3.20) 137,600.00

Total Cost of Transferred Out Units: 49,000 @ 3.8724 189,750.00 Total Cost of Transffered Out Units: 49,000 @ 3.2857 161,000.00

IP End: 3,000 units IP End: 5,000 units

Cost added: Cost added:
M 600.00 M (5,000 x 1.00) 5,000.00
L 360.00 L (2,000 x 0.50) 1,000.00
FOH 180.00 FOH (2,000 x 0.20) 400.00
Transferred In Cost 6,000.00 7,140.00 Transferred In Cost (5,000 x 1.50) 7,500.00 13,900.00
TOTAL 196,890.00 TOTAL 174,900.00

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PROBLEM 3

Rosas Manufacturing Co.

Quantity Schedule

DEPARTMENT I DEPARTMENT II

Input: Input:
IP Beg 50,000 IP Beg 60,000
Loss at 60% done Loss at 80% done
PIP 230,000 Received 200,000
TUTBAF 280,000 Conversion Costs TUTBAF 260,000 Conversion Costs Materials
Output: Actual % EUP Output: Actual % EUP EUP
TO 200,000 IP Beg, F & T 50,000 70% 35,000 TO 210,000 IP Beg, F & T 60,000 60% 36,000 50% 30,000
PIP, F & T 150,000 100% 150,000 Received, F & T 150,000 100% 150,000 100% 150,000
IP, End 70,000 IP, End 70,000 70% 49,000 IP, End 35,000 IP, End 35,000 80% 28,000 75% 26,250
Ab. Loss 10,000 Ab. Loss 10,000 60% 6,000 Ab. Loss 15,000 Ab. Loss 15,000 80% 12,000 50% 7,500
TUAF 280,000 Total 280,000 240,000 TUAF 260,000 Total 260,000 226,000 213,750

JOURNAL ENTRIES:
JOURNAL ENTRIES:
1 WIP-Dept I 864,000.00
1 WIP-Dept B 552,750.00
Materials 480,000.00 Materials 213,750.00
Payroll 240,000.00 Payroll 180,800.00
Applied FOH 144,000.00 Applied FOH 158,200.00
# #

2 WIP-Dept II 700,000.00 2 FG 1,155,000.00

WIP-Dept I 700,000.00 WIP-Dept B 1,155,000.00
# #

3 Abnormal Loss 21,600.00 3 Abnormal Loss 78,000.00

WIP-Dept I 21,600.00 WIP-Dept B 78,000.00
# #

WIP - Department A WIP - Department B

Beg. Balance 34,000.00 700,000.00 TO Beg. Balance 171,000.00 1,155,000.00 TO
M, L & FOH 864,000.00 21,600.00 Ab Loss M, L & FOH 552,750.00 78,000.00 Ab Loss
Transferren In 700,000.00
Total 898,000.00 721,600.00 Total Total 1,423,750.00 1,233,000.00 Total
Ending Balance 176,400.00 Ending Balance 190,750.00

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 Rosas Manufacturing Co.
Cost of Production Report

DEPARTMENT I DEPARTMENT II

COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost
Costs added this month: Costs added this month:
M 480,000.00 240,000 2.00 M 213,750.00 213,750 1.00
L 240,000.00 240,000 1.00 L 180,800.00 226,000 0.80
FOH 144,000.00 240,000 0.60 FOH 158,200.00 226,000 0.70
Total 864,000.00 3.60 Total 552,750.00 2.50
Cost, Beg 34,000.00 Cost, Beg 171,000.00
Transferred In Cost 700,000.00 200,000 3.50
TOTAL 898,000.00 TOTAL 1,423,750.00 6.00

COSTS ACCOUNTED FOR AS FOLLOWS: COSTS ACCOUNTED FOR AS FOLLOWS:

TO: 200,000 units TO: 210,000 units
IP Beg, F & T: 50,000 units IP Beg, F & T: 60,000 units
Cost, Beg 34,000.00 Cost, Beg 171,000.00
Cost added: Cost added:
M 70,000.00 M 30,000.00
L 35,000.00 L 28,800.00
FOH 21,000.00 160,000.00 FOH 25,200.00
255,000.00
PIP, F & T: 150,000 units Received, F & T: 150,000 units
540,000.00 900,000.00

Total Cost of Transferred Out Units: 200,000 units @ 3.50 700,000.00 Total Cost of Transferred Out Units: 210,000 units @ 5.500000 1,155,000.00

IP End: 70,000 units IP End: 35,000 units

Cost added: Cost added:
M 98,000.00 M 26,250.00
L 49,000.00 L 22,400.00
FOH 29,400.00 FOH 19,600.00
176,400.00 Transferred In Cost 122,500.00
190,750.00
Ab. Loss: 10,000 units Ab. Loss: 15,000 units
Cost added: Cost added:
M 12,000.00 M 7,500.00
L 6,000.00 L 9,600.00
FOH 3,600.00 FOH 8,400.00
21,600.00 Transferred In Cost 52,500.00 78,000.00
TOTAL 898,000.00 TOTAL 1,423,750.00

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PROBLEM 4
Pinilakan Mfg Co
Quantity Schedule
September

DEPARTMENT A DEPARTMENT B

Input: Input:
IP Beg 10,000 IP Beg 20,000
Loss at 1/2 done Loss at 40% done
PIP 50,000 Received 48,000
TUTBAF 60,000 Conversion Costs Materials TUTBAF 68,000 Conversion Costs Materials
Output: Actual % EUP EUP Output: Actual % EUP EUP
TO 48,000 IP Beg, F & T 10,000 4/5 8,000 100% 10,000 TO 60,000 IP Beg, F & T 20,000 60% 12,000 20% 4,000
PIP, F & T 38,000 100% 38,000 100% 38,000 Received, F & T 40,000 100% 40,000 100% 40,000
IP, End 9,000 IP, End 9,000 4/9 4,000 0% - IP, End 5,000 IP, End 5,000 70% 3,500 100% 5,000
Ab. Loss 3,000 Ab. Loss 3,000 1/2 1,500 0% - Ab. Loss 3,000 Ab. Loss 3,000 40% 1,200 50% 1,500
TUAF 60,000 Total 60,000 51,500 48,000 TUAF 68,000 Total 68,000 56,700 50,500

JOURNAL ENTRIES: JOURNAL ENTRIES:

1 WIP-Dept A 298,500.00 1 WIP-Dept B 211,300.00

Materials 144,000.00 Materials 126,250.00
Payroll 77,250.00 Payroll 56,700.00
Applied FOH 77,250.00 Applied FOH 28,350.00
# #

2 WIP-Dept B 312,000.00 2 FG 600,000.00

WIP-Dept A 312,000.00 WIP-Dept B 600,000.00
# #

3 Abnormal Loss 4,500.00 3 Abnormal Loss 25,050.00

WIP-Dept A 4,500.00 WIP-Dept B 25,050.00
# #

WIP - Department A WIP - Department B

Beg. Balance 30,000.00 312,000.00 TO Beg. Balance 152,000.00 600,000.00 TO
M, L & FOH 298,500.00 4,500.00 Ab Loss M, L & FOH 211,300.00 25,050.00 Ab Loss
Transferren In 312,000.00
Total 328,500.00 316,500.00 Total Total 675,300.00 625,050.00 Total
Ending Balance 12,000.00 Ending Balance 50,250.00

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 Pinilakan Mfg Co
Cost of Production Report
September

DEPARTMENT A DEPARTMENT B

COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost
Costs added this month: Costs added this month:
M 144,000.00 48,000 3.00 M 126,250.00 50,500 2.50
L 77,250.00 51,500 1.50 L 56,700.00 56,700 1.00
FOH 77,250.00 51,500 1.50 FOH 28,350.00 56,700 0.50
Total 298,500.00 6.00 Total 211,300.00 4.00
Cost, Beg 30,000.00 Cost, Beg 152,000.00
Transferred In Cost 312,000.00 48,000 6.50
TOTAL 328,500.00 TOTAL 675,300.00 10.50

COSTS ACCOUNTED FOR AS FOLLOWS: COSTS ACCOUNTED FOR AS FOLLOWS:

TO: 48,000 units TO: 60,000 units
IP Beg, F & T: 10,000 units IP Beg, F & T: 20,000 units
Cost, Beg 30,000.00 Cost, Beg 152,000.00
Cost added: Cost added:
M (10,000 x 3.00) 30,000.00 M (4,000 X 2.50) 10,000.00
L (8,000 x 1.50) 12,000.00 L (12,000 x 1.00) 12,000.00
FOH (8,000 x 1.50) 12,000.00 84,000.00 FOH (12,000 x 0.50) 6,000.00
180,000.00
PIP, F & T: 38,000 units Received, F & T: 40,000 units
(38,000 x 6.00) 228,000.00 (40,000 x 10.50) 420,000.00

Total Cost of Transferred Out Units: 48,000 units @ 6.50 312,000.00 Total Cost of Transferred Out Units: 60,000 units @ 10.00 600,000.00

IP End: 9,000 units IP End: 5,000 units

Cost added: Cost added:
M (0 x 3.00) - M (5,000 X 2.50) 12,500.00
L (4,000 x 1.50) 6,000.00 L (3,500 x 1.00) 3,500.00
FOH (4,000 x 1.50) 6,000.00 FOH (3,500 x 0.50) 1,750.00
12,000.00 Transferred In Cost (5,000 x6.50) 32,500.00
50,250.00
Ab. Loss: 3,000 units Ab. Loss: 3,000 units
Cost added: Cost added:
M (0 x 3.00) - M (1,500 X 2.50) 3,750.00
L (1,500 x 1.50) 2,250.00 L (1,200 x 1.00) 1,200.00
FOH (1,500 x 1.50) 2,250.00 FOH (1,200 x 0.50) 600.00
4,500.00 Transferred In Cost (3,000 x 6.50) 19,500.00 25,050.00
TOTAL 328,500.00 TOTAL 675,300.00

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 MULTIPLE CHOICE PROBLEM

1 C UNITS
Received from Dept I 40,000
Increase (20%) 8,000
Total 48,000

Cost from Preceding Dept (40,000 x 3) 120,000

Divided by: 48,000
Unit Cost 2.50

2 B Input:
IP Beg 10,000
Received 80,000
Increase 20,000 Conversion Costs Materials
TUTBAF 110,000 Even Application Uneven Application
Output: Actual % EUP % EUP
TO 98,000 IP Beg, F & T 10,000 4/5 8,000 0% -
Received, F & T 88,000 100% 88,000 100% 88,000
IP, End 12,000 IP, End 12,000 1/4 3,000 100% 12,000
TUAF 110,000 Total 110,000 99,000 100,000

3 B Input:
IP Beg 20,000
Received 100,000
Increase 30,000 Conversion Costs Materials
TUTBAF 150,000 Even Application Uneven Application
Output: Actual % EUP % EUP
TO 120,000 IP Beg, F & T 20,000 3/4 15,000 0% -
Received, F & T 100,000 100% 100,000 100% 100,000
IP, End 30,000 IP, End 30,000 5/6 25,000 100% 30,000
TUAF 150,000 Total 150,000 140,000 130,000
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 4 A Input:
IP Beg 8,000
Received 50,000
Increase 10,000 Conversion Costs Materials
TUTBAF 68,000 Even Application Uneven Application
Output: Actual % EUP % EUP
TO 63,000 IP Beg, F & T 8,000 1/8 1,000 0% -
Received, F & T 55,000 100% 55,000 100% 55,000
IP, End 5,000 IP, End 5,000 2/5 2,000 100% 5,000
TUAF 68,000 Total 68,000 58,000 60,000

COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost

Costs added this month:
M 34,800.00 60,000 0.58
L 10,440.00 58,000 0.18
FOH 15,660.00 58,000 0.27
Total 60,900.00 1.03
Cost, Beg 16,200.00
Transferred In Cost 48,000.00 60,000 0.80
TOTAL 125,100.00 1.83

IP End: 5,000 units

Cost added:
M (5,000 x 0.58) 2,900.00
L (2,000 x 0.18) 360.00
FOH (2,000 x 0.27) 540.00
Transferred In Cost (5,000 x 0.80) 4,000.00
7,800.00

5 B Input:
IP Beg 12,000 3. Loss when the
1. Loss at the Start 2. Loss at the end
Received 60,000 goods are 1/5 done
TUTBAF 72,000 Even Application Even Application Even Application
Output: Actual % EUP % EUP % EUP
TO 57,000 IP Beg, F & T 12,000 1/3 4,000 1/3 4,000 1/3 4,000
Received, F & T 45,000 100% 45,000 100% 45,000 100% 45,000
IP, End 10,000 IP, End 10,000 2/5 4,000 2/5 4,000 2/5 4,000
Ab. Loss 5,000 Ab. Loss 5,000 0% - 100% 5,000 1/5 1,000
TUAF 72,000 Total 72,000 53,000 58,000 54,000
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6 C Input:
IP Beg 30,000 3. Loss when the
1. Loss at the Start 2. Loss at the end
Receeived 70,000 goods are 1/2 done
TUTBAF 100,000 Even Application Even Application Even Application
Output: Actual % EUP % EUP % EUP
TO 75,000 IP Beg, F & T 30,000 2/3 20,000 2/3 20,000 2/3 20,000
Received, F & T 45,000 100% 45,000 100% 45,000 100% 45,000
IP, End 15,000 IP, End 15,000 2/5 6,000 2/5 6,000 2/5 6,000
Ab. Loss 10,000 Ab. Loss 10,000 0% - 100% 10,000 1/2 5,000
TUAF 100,000 Total 100,000 71,000 81,000 76,000

7 B Input:
8A IP Beg -
1. Loss at 1/2 done
PIP 80,000
TUTBAF 80,000 Conversion Costs Materials
Output: Actual % EUP % EUP
TO 50,000 IP Beg, F & T - 0 - 0 -
PIP, F & T 50,000 100% 50,000 100% 50,000
IP, End 20,000 IP, End 20,000 40% 8,000 100% 20,000
Ab. Loss 10,000 Ab. Loss 10,000 1/2 5,000 100% 10,000
TUAF 80,000 Total 80,000 63,000 80,000

9 D Input:
10 C IP Beg 1,000
1. Loss at the end
PIP 14,000
TUTBAF 15,000 Conversion Costs Materials
Output: Actual % EUP % EUP
TO 10,000 IP Beg, F & T 1,000 10% 100 0 -
PIP, F & T 9,000 100% 9,000 100% 9,000
IP, End 3,000 IP, End 3,000 50% 1,500 80% 2,400
Ab. Loss 2,000 Ab. Loss 2,000 100% 2,000 100% 2,000
TUAF 15,000 Total 15,000 12,600 13,400

11 Input:
IP Beg 10,000
Conversion Costs Materials
Received 50,000
TUTBAF 60,000 Even Application Uneven Application
Output: Actual % EUP % EUP
TO 40,000 IP Beg, F & T 10,000 2/5 4,000 20% 2,000
Received, F & T 30,000 100% 30,000 100% 30,000
IP, End 10,000 IP, End 10,000 3/10 3,000 50% 5,000
Ab. Loss 10,000 Ab. Loss 10,000 60% 6,000 80% 8,000
TUAF 60,000 Total 60,000 43,000 45,000
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 12 COSTS TO BE ACCOUNTED FOR: Costs EUP Unit Cost
Costs added this month:
M 240,000.00 45,000 5.33
L 129,000.00 43,000 3.00
FOH 86,000.00 43,000 2.00
Total 455,000.00 10.33333
Cost, Beg 12,500.00
Transferred In Cost 250,000.00 50,000 5.00
TOTAL 717,500.00 15.33333

13 IP End: 10,000 units

Cost added:
M (5,000 x 5.33333) 26,666.67
L (3,000 x 3) 9,000.00
FOH (3,000 x 2) 6,000.00
Transferred In Cost (10,000 x 5) 50,000.00
91,666.67

14 Ab. Loss: 10,000 units

Cost added:
M (8,000 x 5.333333) 42,666.67
L (6,000 x 3) 18,000.00
FOH (6,000 x 2) 12,000.00
Transferred In Cost (10,000 x5) 50,000.00
122,666.67

15 TO: 40,000 units

IP Beg, F & T: 10,000 units
Cost Beg 12,500.00
Cost added:
M (2,000 x 5.3333333) 10,666.67
L (4,000 x 3) 12,000.00
FOH (4,000 x 2) 8,000.00
43,166.67
Received, F & 30,000
T: units
(30,000 x 15.333333) 460,000.00

Total Cost of Transffered Out Units: 40,000 @ 12.579167 503,166.67

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