TOPIC: PROCESS COSTING

PROBLEM2

The TaeOh Mfg. Co. operates two consecutive producing departments, A & B. The following quantity data are on Department A's production in December:

In process, December 1 5,000 units, 1/5 done

Placed in process 50,000

units In process, December 31 3,000 units, 2/3 done'

Transferred out 49,500 units

Cost data:

Cost Last Month P 25,000

CTM: Materials

Labor

Overhead 315,000

Instruction: Using the average cost method, compute for equivalent units of production and prepare cost of production report under each of the following assumptions:

a. Loss occurs at the start

b. Loss occurs at the end