In using FIFO method, Periwinkle Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Periwinkle Company presented the following costs on three processes:*see image attached* What is the total costs transferred from Department 1 to Department 2?a. P83,070b. P88,920c. P92,160d. None of the above Required:Costs incurred:Process 1Process 2Process 333,75030,00022,725Materials27,72991,479Direct Labor30,20024,64877,573Overhead24,16018,18019,71862,058Total88,11070,90572,095231,11050% at beginning,50% at 60% complete 50% complete, andMaterials are added at:100% at the beginning40% at beginning, 30% atremaining 30% at 80%complete.Started/Transferred In15,000 units15,200 units5,700 units1.000 units 50% complete.Cost: Materials P2,250;Labor P1,000; OH P800.500 units 70% complete. 250 units 40% complete, 250Cost from precedingdepartment P2,925;Materials P1,000; LaborP525; OH P420.units 70% complete. Costfrom preceding pepartmentP5,275; Materials P495:Labor P440; OH P352.In process, beginningCompleted15,200 units15,300 Units15,400 UnitsIn Process, end800 units 50% complete400 units 50% complete400 units at 70% complete

Total cost on 15,000 beginning is 88,110 , Where as in process 1000 unit where only 15,200 and…

Answered: 1,000 units 50% complete. Cost:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In using FIFO method, Periwinkle Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Periwinkle Company presented the following costs on three processes:

*see image attached*

What is the total costs transferred from Department 1 to Department 2?

a. P83,070

b. P88,920

c. P92,160

d. None of the above

Required:
Costs incurred:
Process 1
Process 2
Process 3
33,750
30,000
22,725
Materials
27,729
91,479
Direct Labor
30,200
24,648
77,573
Overhead
24,160
18,180
19,718
62,058
Total
88,110
70,905
72,095
231,110
50% at beginning,
50% at 60% complete 50% complete, and
Materials are added at:
100% at the beginning
40% at beginning, 30% at
remaining 30% at 80%
complete.
Started/Transferred In
15,000 units
15,200 units
5,700 units
1.000 units 50% complete.
Cost: Materials P2,250;
Labor P1,000; OH P800.
500 units 70% complete. 250 units 40% complete, 250
Cost from preceding
department P2,925;
Materials P1,000; Labor
P525; OH P420.
units 70% complete. Cost
from preceding pepartment
P5,275; Materials P495:
Labor P440; OH P352.
In process, beginning
Completed
15,200 units
15,300 Units
15,400 Units
In Process, end
800 units 50% complete
400 units 50% complete
400 units at 70% complete

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