The JBriones Company uses process costing in its two producing departments. The following information pertain to Department 2 for November. Normal spoilage is 5% of output; inspection and identification of spoilage take place at the end of the process; materials are added after inspection. Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for conversion costs. A total of 16,000 units were completed and transferred to finished goods. At the end of the month, 10,000 units were still in process, estimated to be 60% complete as to conversion costs. Required: Cost of production report for Department 2. Problem 9 The EDSA Corporation manufactures a product in two departments. Materials are added in each department, increasing the number of units manufactured. A summary of the cost for the company's first month of operations (January) is as follows: Materials Labor Factory Overhead P Department! 180,000 78,000 P Department 2 135,000 82,800 15,600 41,400 The production supervisor reports that 60,000 units were put into production in Department 1. Of this quantity, 15,000, a normal number, were lost in production; and 36,000 were completed and transferred to Department 2. For the balance in process at the end of the month, all materials had been added, but only one third of the labor and factory overhead had been applied. In Department 2, 9,000 units of materials were purchased outside and added to the units received from Department 1; 39,000 were completed and transferred to finished goods inventory. The remainder were in process at the end of the month, with all materials added, but only 40% complete for labor and factory overhead. Required: Cost of production report.