PROCESS 2 ACTIVITY

The following data pertains to the production area of BE HONEST COMPANY. The production process consists of three processes: cutting, assembling and finishing department. Each unit of product is being processed under the three processes starting from cutting to finishing department. The application of materials in each department is as follows: at the beginning of the process in cutting department; in assembling department, 50% are added at the beginning of the process and another 50% when the percentage of completion is at least 60%; in finishing department, materials are added at the end of the process. Cutting department and finishing departments are both using the FIFO method while the assembling department is using Average method of costing system.

Below is the summary of the cost and units processed by the company:

JANUARY: Cutting Department

Units Started 5,000 units

Current Cost P 10,000 for materials and P 4,000 for conversion cost

FEBRUARY: Cutting Department

IP, beg units 2,000 (40% done)

Units Started 7,000 units

Current Cost P 17,000 for materials and P 9,000 for conversion cost

Assembling Department

Units transferred-in from Previous Department were processed in this department

Current cost P 5,000 for materials and P2,000 for conversion cost

MARCH: Cutting Department

IP, beg units (30% done)

Units Started 4,000 units

Current Cost P 7,000 for materials and P 4,000 for conversion cost

IP, end 3,000 units (60% done)

Assembling Department

IP, beg units 1,000 (40% done)

Units transferred-in from Previous Department 6,000 units

Current Cost P 12,000 for materials and P 5,000 for conversion cost

IP, end 4,000 units (80% done)

Finishing Department

Units transferred-in from Previous Department

Current Cost P 5,000 for materials and P2,000 for conversion cost

Compute for the Following:

1. Cost Per EUP for materials and conversion cost

JANUARY: Cutting: _________________, _________________

FEBRUARY: Cutting: _________________, _________________

Assembling: _________________, _________________

MARCH: Cutting: _________________, _________________

Assembling: _________________, _________________

Finishing: _________________, _________________

2. Cost allocated to Finished and Transferred-Out and IP, end

JANUARY: Cutting: _________________, _________________

FEBRUARY: Cutting: _________________, _________________

Assembling: _________________, _________________

MARCH: Cutting: _________________, _________________

Assembling: _________________, _________________

Finishing: _________________, _________________

3. Prepare Cost Production report for the month of February (Assembling Department)

4. Prepare Cost of Goods Manufactured (Company) for the First Quarter ended March 31, 2016