Exercise 7-4 INCREASE IN QUANTITY - AVERAGE Cola Company produces a soft drink in three departments, Syrup, Carbonation, and Bottling Syrup, which gives the drink its flavor, is produced in the first department. The syrup is then transferre to the second department, where carbonated water is added to give the drink its fizz. Afte carbonated water has been added, the liquid drink is bottled. The company uses average costin to account for work in process inventories. Data related to operations in the Carbonation Departme during October are: Quantity Data: WIP, beg (75% done) 1,000 Received from Syrup Dep't 2,000 Transferred to next dep't WIP, end (25% done) 7,800 1,200 Increase in units this dep't 6,000 Cost Data: WIP, beg Added this month Costs from preceding dep't P1,120 P9,680 Materials 140 1,210 Direct labor 65 1,960 Factory Overhead 120 3,120 Required: Prepare a cost of production report for the Carbonation Department.