Problem 2 (Normal Discrete Spoilage Using Weighted Average Method) Sure-Na Company manufactures a single product in two departments, Cutting and Finishing. Production starts in the Cutting Department and the completed units are transferred to the Finishing Department for further processing. Units are inspected at the 80% stage of completion in the Finishing Department. Good units are transferred to finished goods inventory when completed and spoiled units are transferred to a separate inventory account. Spoiled units are inventoried at their salvage value of P3 each, and the unrecoverable cost of spoilage, which was caused by an internal failure, should be charged to the appropriate account. Materials are given at the start of the production process. At the end of June, 2,000 units were still in process in the Finishing Department, 100% complete as to materials and 60% complete as to conversion costs. During July, 20,000 units were transferred from the Cutting Department to the Finishing 1 Department. At the end of July, the Finishing Department still had 4,000 units in process, 100% complete as to materials and 20% complete as to conversion costs. Cost data related to July operations in the Finishing Department follow: Cost Charged to the Finishing Department: Costs from Preceding Department Materials Labor Factory overhead Beginning Inventory Added This Month P6,050 P54,450 3,410 30,690 1,638 14,742 2,184 19,656 Required: Prepare the July Cost Production Report for Finishing Department using the weighted average method. Problem 3 (Normal and Abnormal Discrete Spoilage Using Weighted Average Method) Endless Co. produces hinges which are inspected at the end of production. Any spoilage in excess of 3% of the completed goods units is considered abnormal. Materials is added at the start of the process. Conversion costs are incurred evenly throughout the production process. The May, 2020 production and cost data follow: In process, beginning (50% complete) Units started 5,600 74,400 Good units completed In process, end (1/3 complete) 70,000 7,500 Material Conversion Total Beginning inventory Current period costs P6,400 74,400 P1,232 31,768 P7,632 106,168 Total P80,800 P33,000 P113,800 REQUIRED: Prepare a FIFO Cost of Production Report for the month of May.