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Production 530 Problem 13-2: Preparation of Cost of Production Report When Normal Loss has Occurred. The Lim Company uses a process cost system. On June 1, the company had 500 units in production in the Mixing Department (the second de- partment). All materials had been added to these units, but processing was only one-half complete. Costs applicable to the beginning work in process inventory follow: Transferred In Costs from Prior Department Materials P43,540 Labor 37,620 Overhead 38,150 40,200 During the month of June, an additional 14,300 units were transferred into the Mixing Department with prior department costs of P752,404. Additional costs were incurred in the Mixing Department in June as fol- lows: Materials P480,380 Labor 535,200 Overhead 814,800 A total of 13,600 units were transferred out to finished goods. The ending work in process inventory consisted of 900 units to which all materials had been added, but on which only 75 percent of the processing had been completed. The other units were lost as normal spoilage at the end of the process. Required: 1 Prepare the equivalent production computations for the Mixing De- partment for June. 2. Prepare the cost of production report for the Mixing Department for June. Assume that the average cost method of accounting for inven- tories is used