(WHAT IF) Shalom Company manufactures paint in three departments using a process cost system with a FIFO cost flow assumption. Selected cost and production data for the Blending Department, the second

department in the production process, for the month just ended, are as follows:

Units in beginning work in process (100% complete materials & 60% complete conversion costs) .... 5,000

Units received from Mixing Department................................................................................................ 25,000

Units transferred to Finishing Department............................................................................................. 20,000

Units in ending work in process.............................................................................................................. 7,000

Units spoiled due to normal spoilage ..................................................................................................... 3,000

Work in process, beginning inventory:

Cost from preceding department .................................................................................................... P 4,200

Materials.......................................................................................................................................... 1,960

Labor ................................................................................................................................................ 895

Factory overhead ............................................................................................................................. 685

Costs added during the period:

From preceding department............................................................................................................ P 15,900

Materials.......................................................................................................................................... 8,775

Labor ................................................................................................................................................ 4,550

Factory overhead ............................................................................................................................. 3,770

The paint is inspected at the end of the process in the Blending Department to detect any spoiled batches.

1. Prepare the equivalent production computations for the Blending Department.

2. Prepare the cost of production report for the Blending Department.