Compute the total cost of the units-in-process inventory at the end of the period. JKL FABRICATIONS Inc. manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reportedthe following data. . Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. . Cost added to production during the month were direct materials, P72,900; direct labor P64,880; transferred- in P102,060. Overhead was assigned using the following information: Activity Rate Actual Driver Usage Inspection P7.50 per inspection hour 3,000 inspection hours Maintenance P 2 per maintenance hour 1,200 maintenance hours Receiving P10 per receiving order 1,000 receiving orders . At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in processs, 25% to complete. . Units are inspected when they are 90% converted afterwars paints are added. . The compant is using first-in firs-out method.
Compute the total cost of the units-in-process inventory at the end of the period.
JKL FABRICATIONS Inc. manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reportedthe following data.
. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and
. Cost added to production during the month were direct materials, P72,900; direct labor P64,880; transferred- in P102,060.
Overhead was assigned using the following information:
Activity Rate Actual Driver Usage
Inspection P7.50 per inspection hour 3,000 inspection hours
Maintenance P 2 per maintenance hour 1,200 maintenance hours
Receiving P10 per receiving order 1,000 receiving orders
. At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in processs, 25% to complete.
. Units are inspected when they are 90% converted afterwars paints are added.
. The compant is using first-in firs-out method.
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