ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP.beg (60% materials, 35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials, 75% labor and 50% FOH), 1,500 units. Cost data follows: Cost this Month WIP,beg P1,260 Materials P36,240 Labor 770 10,780 FOH 1,400 21,725 1. Compute for the cost per equivalent unit using average costing. 2. Compute for the equivalent units of production using FIFO. 3. Compute for the cost of WIP, end using Average costing.
ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP.beg (60% materials, 35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials, 75% labor and 50% FOH), 1,500 units. Cost data follows: Cost this Month WIP,beg P1,260 Materials P36,240 Labor 770 10,780 FOH 1,400 21,725 1. Compute for the cost per equivalent unit using average costing. 2. Compute for the equivalent units of production using FIFO. 3. Compute for the cost of WIP, end using Average costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:ATOZ company's product is manufactured in two departments. Units are inspected at the end of the
production process in the first department. Data related to the month of May are: WIP.beg (60% materials,
35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials,
75% labor and 50% FOH), 1,500 units. Cost data follows:
WIP,beg
Cost this Month
Materials
P1,260
P36,240
Labor
770
10,780
FOH
1,400
21,725
1. Compute for the cost per equivalent unit using average costing.
2. Compute for the equivalent units of production using FIFO.
3. Compute for the cost of WIP, end using Average costing.
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