TAPUSIN NA ANG SEM NA ETO Company is producing a product which requires to be processed in
Question:
TAPUSIN NA ANG SEM NA ETO Company is producing a product which requires to be processed in two departments, 1 and 2. Units received from Department 1 are 10,000 units with a cost of P100,000. Department 2 incurred P50,000, P30,000, and P20,000 for Direct Materials, Direct Labor, and FOHA, respectively. 8,000 units were completed and 1,000 (60% done) are still in the process. The units are being inspected at a certain point in time. 5% of Good Units is expected to be Normal. Materials are applied 30% at the start of the process, 50% following the inspection, and another 20% at the end of the process.
Prepare Cost of Production Report for Department 2 under the following CASES of Quality Inspection Point:
1. Beginning of the Process
2. End of the Process
3. 75%
4. 50%
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch