Process Costing

Question 1

5 Steps to Solve Process Costing

Isipin mo yun ang dali, 5 steps LANG

Answer 1

1. Compute for TUTAF and TUAF
2. Compute for EUP
3. Compute for TCTAF and TCAF
4. Compute for Cost per EUP
5. Assign Cost

Question 2

STEP 1 : COMPUTE FOR TUTAF AND TUAF

Answer 2

TUTAF = B + S
TUAF = C + E + L

Question 3

STEP 2 : COMPUTE FOR EUP
- Transferred-In

FIFO vs WAVE

Answer 3

FIFO - 0% sa Beginning, then 100% sa Stated at Ending
WAVE = 100% sa lahat

Question 4

STEP 2 : COMPUTE FOR EUP

Remember in FIFO

Answer 4

kung ano lang ginawa mo this month

Question 5

STEP 3 : COMPUTE FOR TCTAF AND TCAF

TCTAF

Answer 5

Beginning + Current Costs

Question 6

STEP 3 : COMPUTE FOR TCTAF AND TCAF

TCAF (FIFO vs WAVE)

Answer 6

FIFO
- Beginning WIP
- Completed (Beginning and Started)
- Ending

WAVE
- Completed (Beginning and Started)
- Ending

Question 7

STEP 4 : COMPUTE FOR COST PER EUP

FIFO vs WAVE

Answer 7

FIFO = Current Costs / EUP
WAVE = Beginning + Current Costs / EUP

Question 8

Accounting for Lost Units

Normal vs Abnormal

Answer 8

Normal - product cost
Abnormal - period cost (OPEX)

Question 9

Continuous Loss
- If silent yung problem, ano yung EUP ng normal loss? ng abnormal loss?

Answer 9

Normal - 0%
Abnormal - 100%

Question 10

Continuous Loss (Normal)
- Sino nag-aabsorb ng cost ng normal loss?

FIFO vs WAVE
Start / During or End
Ano yung analogy kapag nadiscover sa start/during? sa end?

Answer 10

FIFO
Start / During | End
Beginning - X | ✓
Started - ✓ | ✓
Ending - ✓ | X

WAVE
Start / During | End
Completed - ✓ | ✓
Ending - ✓ | X

Start/During = sira gripo sa CR
End = nagkawalaan cellphone sa meet-up

Question 11

Continuous Loss (Abnormal)
- Sino nag-aabsorb ng cost ng normal loss?

Answer 11

WALA (not absorbed, treated as OPEX)

Question 12

Discrete Loss (Normal)
- Anong products mapupunta yung NL as product cost?

Answer 12

doon lang sa mga nagpass ng inspection point