In using average method, Cruz 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 October 2021, Cruz Company presented the following costs on three processes: In October, what is the amount of conversion costs added in Department B?P492,480P506,520P531,900P812,380 October Costs incurred:Process AProcess BProcess C319,900273,600218,880812,38070% at the beginning of the 50% at beginning, 50% 40% at beginning,additional 30% at 40%complete, and remaining30% at 80% complete.500,000|295,500236,4001,031,900374,000281,400225,120880,520MaterialsDirect LaborOverheadTotalMaterials are added atprocess; remaining 30% at at 80% conversion.60% conversion.Started/Transferred in (units)100,000??Completed (units)95,0005,000 units at 70% converted.3,000 units at 60%2,000 units at 60% converted.converted.In process, end (units) andstage of completion

Conversion costs are those costs which are required to be incurred in order to convert the materials…

Answered: In October, what is the amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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In using average method, Cruz 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 October 2021, Cruz Company presented the following costs on three processes: In October, what is the amount of conversion costs added in Department B? P492,480 P506,520 P531,900 P812,380

October Costs incurred:
Process A
Process B
Process C
319,900
273,600
218,880
812,380
70% at the beginning of the 50% at beginning, 50% 40% at beginning,
additional 30% at 40%
complete, and remaining
30% at 80% complete.
500,000|
295,500
236,400
1,031,900
374,000
281,400
225,120
880,520
Materials
Direct Labor
Overhead
Total
Materials are added at
process; remaining 30% at at 80% conversion.
60% conversion.
Started/Transferred in (units)
100,000
?
?
Completed (units)
95,000
5,000 units at 70% converted.
3,000 units at 60%
2,000 units at 60% converted.
converted.
In process, end (units) and
stage of completion

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