Required: Using the average costing method:

TOPIC: PROCESS COSTING (COST ACC)

a. Compute the unit cost for:

i. Materials

ii. Labor

iii. Factory overhead.

b. Determine the cost of the work in process ending inventory

Problem 7 Barcelona Beach Products reports the following data for the first department in its production process: Units in process at beginning of period (all materials; 3/4 labor and factory overhead) 5,000 Units started in process 35,000 Units transferred out 33,000 Units still in process (all materials; 1/2 labor and factory overhead) 5,000 Units completed but not yet transferred to Finished Goods 2,000 Related data were: Work in Process at Added During Beginning of Period the Period Materials P100,000 P 304,000 Labor 125,400 407,100 Factory overhead 173,500 407.750 Total P398,900 P 1,118,850