CHOWKING Company adds material at the start of production. The following

production information is available for June:

Units

Beg. Work-in-Process Inventory (45% complete as to conversion) 10,000

Started this period 120,000

Ending Work-in-Process Inventory (80% complete as to conversion) 8,200

Beginning Work In Process Inventory Costs:

Material P 24,500

Conversion 68,905

Current Period Costs:

Material P 75,600

Conversion 130,053

What are the equivalent units for material using the weighted average method?

What is the conversion cost per equivalent unit using the FIFO method?

KAPA and RIGEN entered into an arrangement which provides that the parties will have joint control over a separate vehicle to be established called KAPARIGEN for the operation of PONCEE in Mindanao. The contractual arrangement provides that KAPARIGEN will have title over the assets and liabilities of the PONCEE and that the parties that have joint control in the arrangement shall have rights to the net assets of the arrangement. How shall KAPA and RIGEN classify and accounts their investments in joint arrangement in their consolidated financial statements?

a.The investment in joint arrangement shall be classified as joint venture to be accounted for using the equity method

b.The investment in joint arrangement shall be classified as joint venture to be accounted for using proportionate consolidation

c.The investment in joint arrangement shall be classified as joint operation to be accounted for using line by line method by recognizing their share in assets, liabilities, revenue and expenses from the joint operation

d.The investment in joint arrangement shall be classified as joint operation to be accounted for using the equity method