Question
Johnson Company adds materials, 50% at the start of the process and 50% at the end of the process in Department A. Conversion costs were
Johnson Company adds materials, 50% at the start of the process and 50% at the end of the process in Department A. Conversion costs were 70% complete as to the 8,000 units in process on January 1 and 50% as to the 6,000 units in process on January 31. During the month of January, 12,000 units were transferred to Department B. An analysis of the costs relating to Work in Process is as follows:
Work in process, 1/1
Materials, P12,000; Conversion costs, P25,000
Costs added during the month:
Materials, P63,030; Conversion costs, P105,750
Using FIFO Method, the cost of the 12,000 units transferred to Department B is:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started