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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:

  1. Manufacturing starts at Department 1 where all materials are added at start of production and FIFO costing is used.
  2. 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:

  1. Make a cost of production report for Department 1.
  2. Make a cost of production report for Department 2.

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