Problem 1: Fantastic Furniture manufactures plastic lawn furniture in a continuous process.

The company pours Started into production: metal for 250,000 figures, which were cast during the month
molten plastic into molds and then cools the plastic. Materials are added at the beginning of the process, and
conversion is considered uniform through the period. Occasionally, the plastic does not completely fill a mold
because of air pockets, and the chair is then considered spoiled. Normal spoilage is 6% of the good units that
pass inspection. The following information pertains to March, 2015:
Ending inventory: 30,000 figures (70% complete as to labor; 90% complete as to overhead)
a. Compute the EUP for direct material, direct labor, and overhead using weighted average process costing.
b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.

 Beginning inventory 1,400 units (100% complete for materials; 20% complete for conversion costs) Problem 5: Green Seasons Processors is a contract manufacturer for the Delectable Dressing Company. All
 Units started 12,000 ingredients are added at the start of the process. Delectable provides reusable vats to Green Seasons for the
 Units in ending work in process 1,100 (100% complete for materials; 70% complete for conversion costs) completed product to be shipped to Delectable for bottling so Green Seasons incurs no packaging costs. April
 Fantastic Furniture had 1,000 spoiled units in March, 2015. 2001 production and cost information for Green Seasons Processors is as follows:

Compute the normal and abnormal spoilage in units, assuming the inspection point is at (a) the 15% stage of Gallons of Direct Direct Factory
completion, (b) the 40% stage of completion, and (c) the 100% stage of completion. Dressing Materials Labor Overhead
Beginning Inventory 37,000 181,300 45,695 50,320
Problem 2: The Kim Company is a furniture manufacturer with two departments: molding and finishing. The Placed in process ? 1,131,435 452,976 770,133
company uses the FIFO method of process costing. In August, the following data were recorded for the finishing Ending Inventory 23,500 ? ? ?
department:
Stage of Transferred- Materials Labor Overhead The beginning inventory stage of completion at the start of the month were 35% and 60% for labor and overhead
Quantity Completion in Cost Cost Cost Cost respectively. At the end of the month 243,000 gallons were transferred out, while the remaining in process were
In Process 8/1 12,500 25% 103,625 0 27,500 25,000 25% and 30% complete as to labor and overhead respectively.
Placed in process 87,500 809,375 819,000 794,500 770,000 Under 1) FIFO and 2) Weighted Average, compute for the following:
In Process 8/31 25,000 95% ? ? ? ? a. What is the total cost of the completed beginning inventory?
b. What is the total cost of goods completed during April?
Conversion costs are added evenly during the process. Direct material costs are added when production is c. What is the average cost per gallon of all goods completed during April?
90% complete. The inspection point is at the 80% stage of production. Normal spoilage is 10% of all good d. What is the cost of April’s ending WIP inventory?
units that pass inspection. Spoiled units are disposed of at zero net disposal value.
Long Problem: Grand Monde Company manufactures various lines of bicycles. Because of the high volume of
For August, summarize total costs to account for and assign these costs to units completed and transferred out each type of product, the company employs a process cost system using the FIFO method to determine unit
(including normal spoilage), to abnormal spoilage, and to units in ending work in process, assuming that spoiled costs. Bicycle parts are manufactured in the Molding Department and transferred to the Assembly Department
units were 12,500. where they are partially assembled. After assembly, the bicycle is sent to the Packing Department. Cost-per-
unit data for the 20-inch dirt bike has been completed through the Molding Department. Annual cost and
Problem 3: Lester Company makes metal products and has a forging department. In this department, materials production figures for the Assembly Department are presented as follows:
are added at the beginning of the process and conversion takes place uniformly. At the start of November 2015,
the forging department had 20,000 units in beginning work in process, which are 100% complete for materials PRODUCTION DATA:
and 40% complete for conversion costs. An additional 100,000 units are started in the department in November,  Beginning inventory (100% complete as to transferred-in; 100% complete as to assembly material;
and 30,000 units remain in work in process at the end of the month. These unfinished units are 100% complete 80% complete as to conversion) 3,000 units
for materials and 70% complete for conversion costs.  Transferred in during the year (100% complete as to transferred-in) 45,000 units
 Transferred to Packing 40,000 units
The forging department had 15,000 spoiled units in November. Normal spoilage is 12% of good units. The  Ending inventory (100% complete as to transferred-in; 50% complete as to assembly material; 20%
department’s costs for the month of November are as follows: complete as to conversion) 4,000 units
Beginning WIP Costs Incurred During Period
Direct materials costs P 64,000 P 200,000 COST DATA
Conversion costs 102,500 1,000,000 Transferred-In Direct Material Conversion
1. Compute the normal and abnormal spoilage in units for November, assuming the inspection point is at (a) the Beginning inventory P 82,200 P 6,660 P 11,930
30% stage of completion, (b) the 60% stage of completion, and (c) the 100% stage of completion. Current period 1,237,800 96,840 236,590
2. Now assume that the forging department inspects at the 60% stage of completion. Using the FIFO method, Totals P 1,320,000 P 103,500 P 248,520
calculate the cost of units transferred out, the cost of abnormal spoilage, and the cost of ending inventory for
the forging department in November.
Damaged bicycles are identified on inspection when the assembly process is 70 percent complete; all assembly
material has been added at this point of the process. The normal rejection rate for damaged bicycles is 5 percent
Problem 4: McArthur Corporation makes toy metal soldiers in a one-department production process. All metal
is added at the beginning of the process. Paint for the figures and the plastic bags for packaging are considered of the bicycles reaching the inspection point. Any damaged bicycles above the 5 percent quota are considered
indirect materials. The following information is available relative to September 2000 production activities: to be abnormal. All damaged bikes are removed from the production process and destroyed.

Beginning inventory: 75,000 figures (60% complete as to labor; 85% complete as to overhead) Prepare the cost of production report for the year ended December 31, 2015.