Choose the letter of the correct answer and the solution must be in good accounting form.  

1. Nasiraan company started operations in the current month. During the month, 10,000 units were started in Department 1. Of the units started, 1,000 units were spoiled at the end of the process which is considered normal in the operations of the company. 7,000 units were transferred to Department 2, and 2,000 remained in work in process at the end of the month, which was 100% complete as to materials and 50% complete as to conversion costs. Materials costs of P30,000 and conversion costs of P45,000 were charged to Department 1 in the current month.

• What were the total costs transferred out to Department 2?

What was the cost of work in process ending inventory?

 2. Kaagapay Company has the following information for the month of November: Started in process units, 400,000; Work in process, beg, (35% complete) 80,000 units; Normal spoilage, 14,000 units; Abnormal spoilage, 20,000 units; Work in process, end (70% complete), 58,000 units; Completed and transferred out, 388,000 units. Costs incurred last month were: Materials, P60,000; Conversion costs, P40,000. All materials are added at the start of the production process. The company inspects goods at 75% completion as to conversion costs. The costs per EUP for materials and conversion costs are P1 and P1.50 respectively.

• What is the cost assigned to normal spoilage, using the weighted average and where is it assigned?

What is the amount assigned to period cost for the month using FIFO?

3. (GALINGANMO CORP)

Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Labor Hrs Area Occupied Maintenance P129,000 2,900 1,200 Security 105,000 1,100 1,500 Cutting 416,000 2,000 1,900 Assembly 380,000 1,600 3,200 The maintenance costs are allocated based on estimated labor hours and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate.