A company’s record showed the following information for the month of August. Beginning inventory Prior department costs- P4,800; 3,000 units (100% complete) Direct materials- 1,080 (20% complete) Conversion costs- 600 (25% complete) Current work: Prior department costs- P9,600 8,000 units (100% complete) Direct materials- 20,460 Conversion costs- 7,640 The ending inventory has 2,000 units, which are 45% complete with respect to direct materials, 65% complete with respect to conversion cost, and 100% complete for prior department cost. FIFO method is used Determine the cost of work in process, end.
A company’s record showed the following information for the month of August. Beginning inventory Prior department costs- P4,800; 3,000 units (100% complete) Direct materials- 1,080 (20% complete) Conversion costs- 600 (25% complete) Current work: Prior department costs- P9,600 8,000 units (100% complete) Direct materials- 20,460 Conversion costs- 7,640 The ending inventory has 2,000 units, which are 45% complete with respect to direct materials, 65% complete with respect to conversion cost, and 100% complete for prior department cost. FIFO method is used Determine the cost of work in process, end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company’s record showed the following information for the month of August.
Beginning inventory
Prior department costs- P4,800; 3,000 units (100% complete)
Direct materials- 1,080 (20% complete)
Conversion costs- 600 (25% complete)
Current work:
Prior department costs- P9,600 8,000 units (100% complete)
Direct materials- 20,460
Conversion costs- 7,640
The ending inventory has 2,000 units, which are 45% complete with respect to direct materials, 65% complete with respect to conversion cost, and 100% complete for prior department cost. FIFO method is used
Determine the cost of work in process, end.
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