Problem 3. FIFO Costing Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2020 Department 1 Department 2 5,000 7.000 50,000 45,000 UNITS: Beginning work in process: Conversion costs, 65% complete Conversion costs, 40% complete Started in production during May Transferred out to Department 2 Transferred out to Finished Goods Ending work in process: Conversion costs, 75% complete Conversion costs, 50% complete COSTS: Beginning work in process: 43,000 10,000 9,000 Transferred in costs from prior department Added this department: Direct Material 0 P30,000 14,600 9,200 11.760 P65,560 P13,000 Direct Labor 8,500 Manufacturing Overhead (applied) 10,975 Total P32.475 Added during the period: Direct materials P65,000 Direct Labor 90,000 Manufacturing Overhead (applied) 52, 825 Total P207.825 P45,000 70,000 39,962 P154.962 Additional Information: All direct materials are added at the beginning of the process of each department while conversion costs are applied evenly during the process Required: 1. Compute equivalent unit of production. a. Department 1 b. Department 2 1. Prepare a separate cost of production report. a. Department 1