PROCESS 2 ACTIVITY The following data pertains to the production area of BE HONEST COMPANY. The production process consists of three processes: cutting, assembling and finishing department. Each unit of product is being processed under the three processes starting from cutting to finishing department. The application of materials in each department is as follows: at the beginning of the process in cutting department; in assembling department, 50% are added at the beginning of the process and another 50% when the percentage of completion is at least 60% ; in finishing department, materials are added at the end of the process. Cutting department and finishing departments are both using the FIFO method while the assembling department is using Average method of costing system. Below is the summary of the cost and units processed by the company: JANUARY: Cutting Department Units Started 5,000 units Current Cost P 10,000 for materials and P 4,000 for conversion cost FEBRUARY: Cutting Department IP, beg units 2,000 (40% done) Units Started 7,000 units Current Cost P 17,000 for materials and P 9,000 for conversion cost Assembling Department Units transferred-in from Previous Department were processed in this department Current cost P 5,000 for materials and P2,000 for conversion cost MARCH: Cutting Department IP, beg units (30% done) Units Started 4,000 units Current Cost P 7,000 for materials and P 4,000 for conversion cost IP, end 3,000 units (60% done) Assembling Department IP, beg units 1,000 (40% done) Units transferred-in from Previous Department 6,000 units Current Cost P 12,000 for materials and P 5,000 for conversion cost IP, end 4,000 units (80% done) Finishing Department Units transferred-in from Previous Department Current Cost P 5,000 for materials and P2,000 for conversion cost