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How to solve the following problems?

220,000 d. 250,000 PROBLEMS P8-1 Sprint Corporation started operations on October 1, 2014. It has three processing departments: X, Y, and Z. The following information was available during the first month of production: October 2014 Department Department Department Quantity 4,000 3,000 2,800 Started in process Finished and transferred to next department Work in process, end 3,000 1,000 20% 2,800 200 60% 2,000 800 25% Stage of completion Cost incurred Materials Labor Overhead P 64,000 P34,800 P22,000 29,000 23,200 153.600 P87.000 P44 000 38,400 51,200 13,200 8,800 Required: Cost of production report for Departments X, Y, and 2 CHAPTER 8 Process Costing: General Procedures 215

a「Corporation has three processing departments. Alpha and Omega. therhead are appiod uniformly while materials are added at various stages P8-2 Cingular overhead are ae applied uniformly while materials are added at vanous stagesth rocess. The following information was available for Omega: Quantity 1,800 Transferred from Alpha Started during the month Finished and transferred to next department Ending work in process (60% complete) 3,000 ,200 Cost incured Materials Labor Overhead P22,000 13,200 8,800 P44,000 There are no beginning work in process inventon Required: Calculate the equivalent production for each of the following independe cases a. 100% of materials are added at the start of the process b, 100% of materials are added at the end of the process c, 80% of materials are added at the start of the process and the remaining 20%E added when units are 50% complete 50% of materials are added at the start of the process, 30% are added when ut are 60% complete and the remaining 20% are added at the end of the process. d,

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Answer #1

P8-1 - Cost of Production of Sprint Corporation

Data - As given

Department
X Y Z
Units Started         4,000.0         3,000.0         2,800.0
Units in WIP, end         1,000.0             200.0             800.0
Finished Goods         3,000.0         2,800.0         2,000.0
WIP Status 20% 50% 25%

Calculation of Equivalent units Produced -

Finished         3,000.0         2,800.0         2,000.0
WIP = Equivalaent to FG (WIP Units x percentage completion)             200.0             100.0             200.0
Total         3,200.0         2,900.0         2,200.0

Cost of Material Per unit is calculated by dividing Total Material cost by Total Units processed.

But cost per unit of Labour and overheads is calculated by dividing Total Cost by equivalent units produced.

Material Cost       64,000.0       34,800.0       22,000.0
Total Units         4,000.0         3,000.0         2,800.0
Rate per Unit               16.0               11.6                  7.9
Labour       38,400.0       29,000.0       13,200.0
Total Units         3,200.0         2,900.0         2,200.0
Rate per Unit               12.0               10.0                  6.0
Overheads       51,200.0       23,200.0         8,800.0
Total Units         3,200.0         2,900.0         2,200.0
Rate per Unit               16.0                  8.0                  4.0

Cost of Production of Each Department -

Department
Department X Y Z
Finished Goods         3,000.0         2,800.0         2,000.0
Rate per Units
Material               16.0               11.6                  7.9
Labour               12.0               10.0                  6.0
Overheads               16.0                  8.0                  4.0
Cost of Production
Material           48,000           32,480           15,714
Labour           36,000           28,000           12,000
Overheads           48,000           22,400             8,000
      1,32,000           82,880           35,714
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