Requirements:

1.1) Prepare Cost of Production Report for each department under FIFO method.

1.2) Prepare journal entry to record the transfer of completed units to the next department under FIFO method.

2.1) Prepare Cost of Production Report for each department under Average method.

2.2) Prepare journal entry to record the transfer of completed units to the next department under Average.

Transcribed Image Text:

CareLife Company is in the essential oil manufacturing business for ten years now. Its production process is done in two departments which activities involve collecting ingredients, extracting oils, blending, aging, and packaging, among others, before the completed units are transferred to the finished goods. A unit being referred herein is a bottle of 60 ml essential oil. Data related to April 2020 operations are presented below: Units in beginning WIP inventory: Department A (100% materials, 80% conversion cost) Department B (60% materials, 40% conversion cost) Department A Department B 800 1,200 Required: 2,400 1) Prepare 2,200 3,000 a Cost of Production Report 1,000 for each Units started in process Units transferred out from the department Units in ending WIP inventory: Department A (100% materials, 20% conversion cost) Department B (100% materials, 50% conversion cost) Costs in the beginning inventory: From the preceding department Direct materials Direct labor Factory overhead Costs added during May: Direct materials Direct labor Factory overhead 400 department, and P 296,000 117,120 9,200 11,840 39,200 6,400 10,080 P 360,000 P 11,256 66,480 186,960 79,520 113,600 journal entry to record the transfer of completed units to the next department, under FIFO method. 2) Prepare a Cost of Production Report for each department, and journal entry to record the transfer of completed units to the next department, under weighted average method. CareLife Company is in the essential oil manufacturing business for ten years now. Its production process is done in two departments which activities involve collecting ingredients, extracting oils, blending, aging, and packaging, among others, before the completed units are transferred to the finished goods. A unit being referred herein is a bottle of 60 ml essential oil. Data related to April 2020 operations are presented below: Units in beginning WIP inventory: Department A (100% materials, 80% conversion cost) Department B (60% materials, 40% conversion cost) Department A Department B 800 1,200 Required: 2,400 1) Prepare 2,200 3,000 a Cost of Production Report 1,000 for each Units started in process Units transferred out from the department Units in ending WIP inventory: Department A (100% materials, 20% conversion cost) Department B (100% materials, 50% conversion cost) Costs in the beginning inventory: From the preceding department Direct materials Direct labor Factory overhead Costs added during May: Direct materials Direct labor Factory overhead 400 department, and P 296,000 117,120 9,200 11,840 39,200 6,400 10,080 P 360,000 P 11,256 66,480 186,960 79,520 113,600 journal entry to record the transfer of completed units to the next department, under FIFO method. 2) Prepare a Cost of Production Report for each department, and journal entry to record the transfer of completed units to the next department, under weighted average method.