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At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of
At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of GAYUMA product after which the bottles are sent to the shipping department for packing and crating. Labor and overhead are continuously added during the processing. Overhead is applied at the rate of P30 per direct labor hour.
Data for May follows:
Work in process, beginning 4, 000 units
Raw materials-chemicals (60% complete)
Direct Labor (25% complete)
Overhead (25% complete)
Started in Process 21, 000 units
Completed and transferred 20, 000 units
Work in process, end
Raw materials-chemicals (100% complete)
Raw materials-bottles (60% complete)
Direct labor (80% complete)
Overhead (80% complete)
Costs for May:
Work in process, beginning
Raw materials-chemicals P456, 000
Direct labor (P100 per hour) 62, 500
Overhead 18, 750
Current costs added
Raw materials-chemicals P2, 284, 000
Raw materials-bottles 70, 000
Direct labor (P100 per hour) 330, 000
Overhead 105, 000
Weighted average Method is used.
How much is the total cost assigned to the units transferred?
Group of answer choices
2,683,078
2,550,431
2,736,158
2,746,228
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