Cassa Corporation uses process costing. In Department 2, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. Information pertaining to Department 2 include: Units received from Department 1 is 12,000 at a cost of P84,000. Units transferred to finished goods is 9,000 and there are 2,000 units in the ending inventory which are 70% complete. Costs incurred in this department include: Materials - P18,000 with Labor and overhead at P45,600. How much is the cost of goods manufactured in Department 2?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Cassa Corporation uses process costing. In Department 2, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. Information pertaining to Department 2 include: Units received from Department 1 is 12,000 at a cost of P84,000. Units transferred to finished goods is 9,000 and there are 2,000 units in the ending inventory which are 70% complete. Costs incurred in this department include: Materials - P18,000 with Labor and overhead at P45,600. How much is the cost of goods manufactured in Department 2?

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