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Rommel Manufacturing Company applies process costing in its production, which consisted of two departments. The following data were gotten from their operations: Units Dept 1
Rommel Manufacturing Company applies process costing in its production, which consisted of two departments. The following data were gotten from their operations:
Units | Dept 1 | Dept 2 |
Beginning WIP | 50,000 | 70,000 |
Work to be done for the period | 80% | 30% |
Ending WIP | 20,000 | 17,500 |
Work completed | 2/3 | 60% |
Started | 150,000 | |
Costs | ||
Beginning WIP | ||
Transferred In | ------ | P285,450 |
Materials | P135,000 | 214,875 |
Conversion Costs | P97,500 | 280,725 |
Current | ||
Transferred In | ? | |
Materials | P1980,000 | P840,000 |
Conversion Costs | P3088,800 | P1282,500 |
Additional Information are as follows:
- Manufacturing starts at Department 1 where all materials are added at start of production and FIFO costing is used.
- Units are added in the Department 2 where 50% of direct materials as added when it is 30% complete and excess when it is ready to be transferred to the storeroom. This department uses weighted average costing method.
Required:
- Make a cost of production report for Department 1.
- Make a cost of production report for Department 2.
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