PROBLEM:

Dmahirap company adds all materials at the beginning of the process in the first department. Conversion costs were 75% complete as to 8,000 units in WIP beg and 50% complete as to 6,000 units in WIP,end. During the month, 12,000 units were completed and transferred to the next department. Analysis of the costs relating to production for October follows: Conversion Cost Materials WIP,beg P9,600 P4,800 Costs added this month 15,600 14,400