Dept

These two costs must be separately computed. 800 Transferred in split into two 600 and 200 times the unit cost already computed in the first dept. The additional cost based on equivalent units should give you another unit cost to be used.

HOMEWORK

Silver City Products manufactures motor tires in mass and continuous basis. For April it started with 15,000 units in the Assembling Dept and was able to transfer 10,000 of these to the Finishing Dept. The unfinished 5,000 are half done. Costs data showed that the department requisitioned $190,000 materials based on two requisition slips. Payroll was supported by time tickets showing direct labor $140,000 and indirect labor $120,000 for the month of April. The accountant applies overhead based on 50% of direct labor.

Required: Prepare a production cost report for Assembling Dept for the month of April. Follow the format of Illustrative 1. Remember if you are going to prepare only a production cost report, look only for product costs (Direct Materials, Direct Labor and Applied Overhead).

For the same month of April, Finishing Dept recveived the 15,000 and reported the following:

8,000 tires finished while the remaining in process of 2,000 are 25% done only.

Material requisition slips totaled P171,000, Time Tickets of direct laborers totaled $90,000.

Required: Prepare a production cost report for Finishing Dept for the month of April. Follow the format of Illustrative 2. Show solution