The CAMAY Corp requires three processing departments to produce its soap. All direct materials are introduced into production at the beginning of Dept 1. Dept 1 through 3 add conversion cost evenly throughout the process. The company uses Weighted Average Method.

 

1. What is the cost of units transferred out from Dept 2?
2. What is the cost ending WIP in Dept 3?
3. IF 100,000 units were sold to customers at selling price of P 1.5 per unit; compute the gross profit of the company.
4. What is the cost of units transferred out from Dept 1?
5. What is the cost ending WIP in Dept 2?

Departments 1' 2' 3' Units started in process Units transferred to next department Units transferred to Finished Goods % of completion for Converison cost Cost Added by the department: Direct materials Direct Labor Applied OH 150,000.00 125,000.00 115,000.00 112,000.00 0.40 0.10 0.90 21,000.00 8,100.00 11,600.00 8,029.00 200% of DL