Question
The following departmental data of the Bess Manufacturing Company for the month of January are given: Department A: 100,000 pounds of material costing P25,000 were
The following departmental data of the Bess Manufacturing Company for the month of January are given:
Department A:
100,000 pounds of material costing P25,000 were placed in process
Payrol costs for the montg was P12,000
Overhead costs for the month were P8,000
60,000 pounds were completed and transferred to Department B
40,000 pounds are still in process, all ncessary materials have been applied, but were considered 1/2
complete as to labor and manufacturing overhead costs
Department B:
Payroll costs were P15,000
Overhead cost were P10,00
Of the 60,000 pounds received from Department A, 45,000 pounds were completed and transferred to
the finished goods stockroom, 15,000 pounds are still in process, being 1/3 complete as to labor and manufacturing overhead costs
Requirement:
1.Compute the EUP in each case (FIFO and Weighted Average Method)
2.What was the cost of the goods transferred out and in ending work in process using the FIFO method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets compute the equivalent units of production EUP and then determine the cost of goods transferred out and ending work in process using the FIFO method Equivalent Units of Production EUP Department ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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