Mr. Muscle MANUFACTURING COMPANY lost the November 2022 cost of production reports of its two processing departments because of the corrupted data files. The company engages your services today to reconstruct the cost of production reports. To reconstruct the reports, the following information are made available; -The production process of the company follows a sequential product flow. -One-half of the units started in the first department are finally transferred to the finished goods "bodega" by the second department, One-third of the units in the first department remain as work in process. -The departments have the same number of units for processing at the end of the period. - In the first department, the total equivalent production for materials is the same with the number of units it started but 5,000 more than the total equivalent production for conversion. -In the second department, the total equivalent production for materials is 3,000 less than the total equivalent production for conversion. -The unit cost of the first department is P3.00 more than the second department. The unit cost difference of P3.00 was due to the P1-difference for each element of cost between the two departments. -Of the total amount to be accounted for in the first department, the amount of P310,000 remains in the work in process at the end. -The cost transferred to the finished goods inventory for the month is 37.5% more than the amount transferred by the first department to the second department. 

During the month of November 2022, the second department adds the following costs: materials, P175,000; labor, P140,000; and overhead, P84,000. - Total cost to account for in the second department amounted to P1,449,000. In the first department all materials are added at the start of production while the second department adds 25% of materials when the process reaches 40%. The remaining materials are added at the end of the process. According to the plant supervisor, Mr. muscle, who viewed the reports before they were lost, the current conversion cost of the first department amounted to P550,000 of which labor accounted for 60%. The conversion unit cost of the first department was P10. The supervisor noticed that the first department had no work in process at the start of November 2022. Asked what type of cost flow assumption was followed by the two departments, the response was he is not familiar. 

Questions: 

What is the equivalent of total prduction of materials on dept.

Answer rating: 100% (QA)

To determine the equivalent total production of materials in the first department we can use the inf... View the full answer