Part 3

In the pharmaceutical company "F" the production of product "A" includes various production departments. In the first production phase (section A) two active substances are mixed into special vials and in specific production conditions. Completion of this production phase requires both immediate materials (active substances and vials) and the cost of conversion. From this production part, each vial is transferred to the subsequent production phases during which other active substances are added.

You are given the following information for section A relating to April 2022:

• At the beginning of the period there were 2,000 units (vials) which had been completed by 80% in terms of direct materials and 50% in terms of conversion costs. The production in progress had absorbed directly materials costing 18.000 , direct work costing 2.000 and general industrial expenses of 2.400 .
• During the period, 17,000 new units (vials) were introduced. At the end of the period, 3,000 units had remained for processing, which had been completed by 40% in terms of direct materials and 10% in terms of conversion costs. The cost of direct materials added in April was 197.000, the cost of direct work was estimated at 42.000, the general industrial expenses at 51.400.
• From the advertising expenses of the month of April, an amount of 3.260 corresponds to an advertisement for the product "a".

Taking into account that the company uses the full costing and has adopted the MOU, it is requested that you draw up the report of the cost of production.