Bryan Company employs process costing system. A unit of product passes through two departments: Assembly and finishing
Question:
Bryan Company employs process costing system. A unit of product passes through two departments: Assembly and finishing before it is complete. Information regarding Assembly Department follow:
Work-in-process, Feb 1 4,000 units
Spoiled units 3,000
Started in Production 26,000
Transferred out 24,000
Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work in Process on February 1 was 90% complete as to conversion while 4/5 converted on February 28. In the Assembly Department, inspection takes place when the units are 3/4 converted. The company usually experienced a 5% loss based on the completed units. Cost data for the month of February follow:
Total cost of units transferred-out and total cost of work in process, end are:
A. P1,656,000; P186,880
B. P1,718,420; P180,000
C. P1,718,420; P186,880
D. P1,656,000; P180,000
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton