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GamerProf Corporation manufactures heavy duty keyboards that can survive the harshest button presses that are perfect for long periods of gaming, teaching, and occasional
GamerProf Corporation manufactures heavy duty keyboards that can survive the harshest button presses that are perfect for long periods of gaming, teaching, and occasional episodes of tilts. The keyboards begin in the Manufacturing Department where its circuit board and skeletal frame are produced to form one unit, which will then proceed to the Assembly Department, Quality Assurance Department, and Packaging Department. All materials are added at the start of the process in the Manufacturing Department. The following details are available for the Manufacturing Department for the month of October 2021: Units in WIP, beginning (40% incomplete) Units started during the period Units in WIP, ending (60% complete) Spoiled units Reworked units 15,000 units 120,000 units 30,000 units 7,000 units 5,000 units Materials cost in WIP, beginning Conversion cost in WIP, beginning Cost of materials placed into production during the month Conversion cost incurred during the month P1,000,000 P2,000,000 P2,400,000 P6,000,000 Units are inspected for spoilage when conversion is at 50% and are inspected for defects at the end of the process. 5,000 of the 7,000 spoiled units are considered normal, as are 3,000 of the 5,000 reworked units. Total rework cost amounted to P100,000. The salvage value of a spoiled unit is P30/unit and is treated as spoiled units inventory in the cost of production report. The allocable cost of normal spoilage from a period is allocated only to the units that were inspected in the same period. Reworked units can be sold with a P20 deficiency per unit. The company uses actual costing. Excess material which is used to manufacture the body was sold as scrap for P15,000. Scrap sales are accounted for as a reduction to costs to account for, specifically to materials cost. REQUIRED: Under WAVE cost flow assumption, prepare a cost of production report for the Manufacturing Department for the month of October 2021
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