REQUIRED: Prepare Cost of Production per department.

Problem 5 ABM Company uses two departments to produce a product. The following data were taken from the books for the month of January, 2019. Department 1 Department 2 Units: Started 60,000 Completed & transferred 40,000 30,000 In process, end 20,000 10,000 Stage of completion 75% 80% Costs: Materials P 480,000 P 245,000 Labor 330,000 190,000 Factory overhead 220,000 114,000 Department 1 - all materials added at the beginning of the process. Department 2 - 50% of the materials are added at the beginning of the process, remaining 50% added at the end of the process.