Ateneo de Zamboanga University
SCHOOL OF MANAGEMENT AND ACCOUNTANCY
Accounting 206: Cost Accounting and Cost Management, Part II
Kelvin J. Culajara, BSA, CPA
Name: _____________________________________ Date: _______________ Score: __________
Test 1: Comprehensive Problem/Reporting
Assume that you are the newly-hired chief cost accountant of Wapayutana Company. As the chief officer, you are tasked to monitor the flow of costs throughout the process, and hence, you are accountable for the cost of production report which is done monthly. On your first day of work, you were summoned by the President of Wapayutana to orient you about the ins and outs of the company. He gave you the following information:
Wapayutana Company’s main line of business is manufacturing a bottled juice that is sourced from a hybrid type of citrus fruit called the Chever Fruit.
When Chever Fruits are harvested by farmers in the Chever Farm, such harvest are first brought to the Extraction Department where the workers will add them first in a huge metal colander which are designed to squeeze the juice from the fruit. The collected juice shall then be transferred to the Mixing Department where they will be adding Material A (Sweetener). After intense mixing, Material B (Preservatives) shall then be added and the mixture shall immediately be transferred to the Bottling Department where they will be contained and sealed in glass bottles. The full manufacturing process ends in the Bottling Department. Finished units from this department shall then be delivered and stored in the warehouse, and they are finally considered ready for sale.
Cost flow information
The following refers to the production data for the month of December 2014:
Department 1: Extraction
Dec. 1, work in process
Started in production
Dec. 31, work in process
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