Problem 13-11: Cost of Production Report with Normal and Abnormal Spoilage. The NIDO Company uses the FIFO method of process costing. It has two departments: Cleaning and Milling. For both departments, conversion costs are added evenly during the process. However, direct materials are added at the beginning of the process in the Cleaning Department, and additional direct materials are added at the end of the milling process. The costs and unit production data for May follow: Work in Process-beginning: Cleaning (P10,000 direct materials and P8,000 conversion costs) Cleaning Department Milling Department Milling (P64,500 transferred in costs and P24,500 conversion costs) P18,000 Costs Added During Current Month: P89,000 Direct materials P90,000 P6,400 Conversion costs P80,000 P49,500 Physical Units: Units in beginning inventory 1,000 3,000 Units started this month 9,000 ? Units completed and transferred out 7,400 6,000 Normal lost units 740 300 Abnormal lost units 260 100 The beginning work in process inventory was 80% complete as to conver sion costs as of May 1. All units completed are transferred to the next department. Ending work in process is 25% complete as to conversion costs. Additional Information: 1. Spoilage is assumed to occur at the end of each of the two processes when units are inspected. 2. Carry unit cost computations to five decimal places if necessary and calculate final total to the nearest pesos. Required: 1 Compute equivalent units of production for the two departments. 2. Prepare cost of production report for the month of May for both de- partments.