Problem 1. FIFO Costing Maginhawa Company manufactures soap in two departments in a continuous process. The following
Question:
Problem 1. FIFO Costing
Maginhawa Company manufactures soap in two departments in a continuous process. The following data is available for May 2020.
Department 1 UNITS: Beginning work in process: | Department 2 | |
Conversion costs, 65% complete 5,000 | ||
Conversion costs, 40% complete Started in production during May 50,000 Transferred out to Department 2 45,000 | 7,000 | |
Transferred out to Finished Goods Ending work in process: Conversion costs, 75% complete 10,000 | 43,000 | |
Conversion costs, 50% complete
COSTS: Beginning work in process: | 9,000 | |
Transferred in costs from prior department 0
Added this department: | P30,000 | |
Direct Material P13,000 | 14,600 | |
Direct Labor 8,500 | 9,200 | |
Manufacturing Overhead (applied) 10,975 | 11,760 | |
Total P32,475 Added during the period: | P65,560 | |
Direct materials P65,000 | P45,000 | |
Direct Labor 90,000 | 70,000 | |
Manufacturing Overhead (applied) 52, 825 | 39,962 | |
Total P207,825 | P154,962 |
Additional Information:
All direct materials are added at the beginning of the process of each department while conversion costs are applied evenly during the process.
Required:
1. Compute equivalent unit of production.
-Department 1
-Department 2
2. Prepare a separate cost of production report.
-Department 1
-Department2
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav