Homework Help is Here – Start Your Trial Now!
Business
Accounting
In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60%

In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The cost of goods manufactured for the period is:

The cost of goods manufactured for the period is: In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60% converted and reported that 8,000 units at the end are 50% converted. Based on company's experience, normal spoilage is anticipated to be 2% of units that reached the inspection point. The cost of abnormal spoilage, if any, is charged to period cost. Materials are added at the start of the process in Department 1 while packaging materials are added at the end of the process in Department 2. Inspection is done at the end of the process. The following unit cost per EUP is available: Cost component Costs last month Costs this month Prior department P6.50 P3.50 Direct materials 1.20 2.00 Conversion costs 3.00 5.00
Transcribed Image Text:The cost of goods manufactured for the period is: In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60% converted and reported that 8,000 units at the end are 50% converted. Based on company's experience, normal spoilage is anticipated to be 2% of units that reached the inspection point. The cost of abnormal spoilage, if any, is charged to period cost. Materials are added at the start of the process in Department 1 while packaging materials are added at the end of the process in Department 2. Inspection is done at the end of the process. The following unit cost per EUP is available: Cost component Costs last month Costs this month Prior department P6.50 P3.50 Direct materials 1.20 2.00 Conversion costs 3.00 5.00
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS