Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers.For December,2022. CBA Company presented the following costs on processes:In December, under FIFO method, what is average unit cost of inventory transferred from Process 1 to Process 2?P13.20P13.33P13.32P13.21 December 2021 Costs incurred:Process 1Process 2Process 3300,510.00198,000.00158,400.00656,910.00246,225.00170,625.00136,500.00553,350.00|189,375.00142,785.00112,320.00444,480.00MaterialsDirect LaborOverheadTotal50% at the beginning of the50% at the beginning of theprocess, and remaining 50% at of the process and the00% of the process.process, another 30% at 70%Materials are addedthe beginning of the process.remaining 20% at 00% of theprocess.Started/Transferred In (units)In process, beginning (units)Completed and transferred out (units)In Process, end (units)In Process, end (rate of convertion)50,0001,00049,00049,0001,50047,00047,0001,50045,0002,0002,0002,00050%50%60%Normal Loss- not more than 900 units900900Abnormal loss (units)600600Quality Control Inspection Madeat the end of the processat the end of the processat the end of the process

Average unit cost of inventory shows the cost per equivalent unit. Equivalent unit is calculated by…

Answered: Company produces a product that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers.For December,2022. CBA Company presented the following costs on processes: In December, under FIFO method, what is average unit cost of inventory transferred from Process 1 to Process 2? P13.20 P13.33 P13.32 P13.21

December 2021 Costs incurred:
Process 1
Process 2
Process 3
300,510.00
198,000.00
158,400.00
656,910.00
246,225.00
170,625.00
136,500.00
553,350.00|
189,375.00
142,785.00
112,320.00
444,480.00
Materials
Direct Labor
Overhead
Total
50% at the beginning of the
50% at the beginning of the
process, and remaining 50% at of the process and the
00% of the process.
process, another 30% at 70%
Materials are added
the beginning of the process.
remaining 20% at 00% of the
process.
Started/Transferred In (units)
In process, beginning (units)
Completed and transferred out (units)
In Process, end (units)
In Process, end (rate of convertion)
50,000
1,000
49,000
49,000
1,500
47,000
47,000
1,500
45,000
2,000
2,000
2,000
50%
50%
60%
Normal Loss- not more than 900 units
900
900
Abnormal loss (units)
600
600
Quality Control Inspection Made
at the end of the process
at the end of the process
at the end of the process

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