Cingular Corporation has three processing departments, Alpha and Omega. Labor and overhead are applied uniformly while materials are added at various stages throughout the process. The following information was available for Omega:

 

Quantity
Transferred   from Alpha	1,800
Started   during the month
Finished and   transferred to next department	3,000
Ending Work   In Process (60% Complete)	1,200
Cost Incurred
Materials	P 22,000
Labor	P 13,200
Overhead	P 8,800
	P 44,000

 

There is no beginning work in process inventory.

 

REQUIRED: Calculate the equivalent production for each of the following independent 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% are added when units are 50% complete.

d)  50% of materials are added at the start of the process, 30% are added when units are 60% complete and the remaining 20% are added at the end of the process.

Answer rating: 100% (QA)

To calculate the equivalent production for each of the independent cases we need to consider the uni... View the full answer