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5. Jet Company manufactures a product that passes in four departments in a continuous process. Department 3 had no beginning work in process inventory and transferred in 18,000 units from Department 2, each with an equivalent unit cost of P12.50. Within Department 3, unit costs for direct materials, direct labor and manufacturing overhead (applied) were P8.00, P9.75, and P4.00, respectively. Direct materials in Department 3 are added at the beginning of the proces. Department 3 had 4,800 units in ending work in process inventory which are 65% complete as to conversion costs. if 620 units were lost in Department 3 at Jet's inspection point where conversion costs were 45% complete, what was the total costs of lost units? a. P11,325.22 b. P13,818.25 c. P16,546.25 d. P 8,796.25

5. Jet Company manufactures a product that passes in four departments in a continuous process. Department 3 had no beginning work in process inventory and transferred in 18,000 units from Department 2, each with an equivalent unit cost of P12.50. Within Department 3, unit costs for direct materials, direct labor and manufacturing overhead (applied) were P8.00, P9.75, and P4.00, respectively. Direct materials in Department 3 are added at the beginning of the proces. Department 3 had 4,800 units in ending work in process inventory which are 65% complete as to conversion costs. if 620 units were lost in Department 3 at Jet's inspection point where conversion costs were 45% complete, what was the total costs of lost units? a. P11,325.22 b. P13,818.25 c. P16,546.25 d. P 8,796.25

FINANCIAL ACCOUNTING
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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Provide a solution for number 5 and 6

5. Jet Company manufactures a product that passes in four departments in a continuous process. Department 3 had no beginning work in process inventory and transferred in 18,000 units from Department 2, each with an equivalent unit cost of P12.50. Within Department 3, unit costs for direct materials, direct labor and manufacturing overhead (applied) were P8.00, P9.75, and P4.00, respectively. Direct materials in Department 3 are added at the beginning of the proces. Department 3 had 4,800 units in ending work in process inventory which are 65% complete as to conversion costs. if 620 units were lost in Department 3 at Jet's inspection point where conversion costs were 45% complete, what was the total costs of lost units? a. P11,325.22 b. P13,818.25 c. P16,546.25 d. P 8,796.25 6. Using the data in Number 5, if at Jet's Department 3 inspection point, which is at halfway through Department 3's conversion process, 1,200 spoiled units were removed from production. Normal lost units was 800 units. If total costs of lost units was P32,850, how much of the amount should be allocated to ending work in process inventory? a. P5,840.00 b. P7,320.00 c. P6,257.14 d. P-0-
Transcribed Image Text:5. Jet Company manufactures a product that passes in four departments in a continuous process. Department 3 had no beginning work in process inventory and transferred in 18,000 units from Department 2, each with an equivalent unit cost of P12.50. Within Department 3, unit costs for direct materials, direct labor and manufacturing overhead (applied) were P8.00, P9.75, and P4.00, respectively. Direct materials in Department 3 are added at the beginning of the proces. Department 3 had 4,800 units in ending work in process inventory which are 65% complete as to conversion costs. if 620 units were lost in Department 3 at Jet's inspection point where conversion costs were 45% complete, what was the total costs of lost units? a. P11,325.22 b. P13,818.25 c. P16,546.25 d. P 8,796.25 6. Using the data in Number 5, if at Jet's Department 3 inspection point, which is at halfway through Department 3's conversion process, 1,200 spoiled units were removed from production. Normal lost units was 800 units. If total costs of lost units was P32,850, how much of the amount should be allocated to ending work in process inventory? a. P5,840.00 b. P7,320.00 c. P6,257.14 d. P-0-
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