bject:cost account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject:cost accounting
Transcribed Image Text:1. Sheena Company uses two departments to produce a product. The following data were taken from
the books of Sweet Treats for the month of January, 2019.
Department 1
Department 2
Started
120,000
Completed and transferred
In process, end
Stage of completion
80,000
60,000
40,000
20,000
65%
80%
Costs:
Materials
960,000
490,000
Labor
660,000
380,000
Factory overhead
Department 1 - materials are added 70% at the beginning of the process, remaining 30% added when
50% done.
440,000
228,000
Department 2 - 75% of materials are added at the beginning of the process, remaining 25% added at the
end of the process.
Required:
• Compute for the EUP (both materials and conversion costs) of Department 1 and 2.
• Prepare a cost of production report using Average method for both departments
Prepare journal entries to record the above transaction
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