Chandler Industries has two departments. In Department 1, all materials are added at the start of...

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Chandler Industries has two departments. In Department 1, all materials are added at the start of production. Department 2 adds material at the 75 percent completion point; this material does not cause an increase in the number of units being processed. The conversion cost are incurred evenly all throughout the process. The following production cost data are applicable for operations for the period of the current year: UNIT DATA Beginning units during the period Started units during the period Department 1 Department 2 2,000 48,000 3,500 ? 3,000 5,000 Ending units during the period PERCENTAGE OF WORK DONE DURING THE PERIOD Department 1 Department 2 Beginning Inventory Ending Inventory COST DATA Beginning WIP Inventory Direct Materials Direct Labor Overhead Transferred-in cost Total Beg. WIP Inventory Started manufacturing cost during the period Direct Materials Direct Labor Overhead Transferred-in cost Total started manufacturing cost Total cost to account for 45% 60% 60% 50% Department 1 Department 2 P 20,000 P 54,250 9,900 6,600 36,500 32,350 53,000 - 63,250 202,850 P 240,000 P 261,000 141,300 153,650 94,200 109,750 ? 475,500 ? 512,000 Required: Prepare the cost of production report assuming the company is using the following method FIFO Weighted Average Chandler Industries has two departments. In Department 1, all materials are added at the start of production. Department 2 adds material at the 75 percent completion point; this material does not cause an increase in the number of units being processed. The conversion cost are incurred evenly all throughout the process. The following production cost data are applicable for operations for the period of the current year: UNIT DATA Beginning units during the period Started units during the period Department 1 Department 2 2,000 48,000 3,500 ? 3,000 5,000 Ending units during the period PERCENTAGE OF WORK DONE DURING THE PERIOD Department 1 Department 2 Beginning Inventory Ending Inventory COST DATA Beginning WIP Inventory Direct Materials Direct Labor Overhead Transferred-in cost Total Beg. WIP Inventory Started manufacturing cost during the period Direct Materials Direct Labor Overhead Transferred-in cost Total started manufacturing cost Total cost to account for 45% 60% 60% 50% Department 1 Department 2 P 20,000 P 54,250 9,900 6,600 36,500 32,350 53,000 - 63,250 202,850 P 240,000 P 261,000 141,300 153,650 94,200 109,750 ? 475,500 ? 512,000 Required: Prepare the cost of production report assuming the company is using the following method FIFO Weighted Average

Answer rating: 100% (QA)

FIFO Method 1 Equivalent Units Calculation For Department 1 48000 units started x 45 21600 equivalent units For Department 2 5000 ending units 48000 started units x 60 33000 equivalent units Transferr... View the full answer