Required: 

a) Production Cost Report for each department using WAM with journal entries. 

b) 40,000 units were sold. To achieve a 30% GP rate, how much should be the selling price? Last entry for the sale. 

c) Prepare a PCR one for each department using FIFO method with journal entries. 

d) 40,000 units were sold. To achieve a 30% GP rate, how much should be the selling price?Last entry for the sale.

SERGE Company produces a product that undergoes processing in two departments. Materials are added at the start of the processing in the Cutting Dept while in the Forming Dept 50% materials are added at the start of the processing and 50% at the end of the process. The PCR last January showed the following costs accounted for: Cutting Department Completed and transferred (40,000 x P18) 720,000 Cooking Department Completed (30,000 x P33) 990,000 IP end (75% done) IP End (80% done) Materials (20,000 x 8) P160,000 Preceding dept.cost (10,000 x 18) 180,000 Conversion (15,000 x 10) 150,000 310,000 Materials (5,000 x 7) 35,000 Conversion (8,000 x 8) 64,000 279,000 Total cost as accounted for 1,030,000 Total cost accounted for P1,269,000 You are given the following information for the month of February: Cutting Cooking Started/Received 50,000 65,000 Completed and transferred 65,000 45,000 In Proc End 60% done 50% done Current Material cost P365,000 338,750 Current Conversion cost 444,000 386,000