JBriones Company uses process costing in its 2 producing departments: 1 & 2. For Department 2, normal spoilage is 5% of output. Inspection and identification of spoilage take place at the end of the process, and then materials are added after inspection. Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for conversion costs. A total of 16,000 units were completed and transferred to finished goods. At the end of the month, 10,000 units were still in process, estimated to be 60% complete as to conversion costs. Required: Cost of production report for Department 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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JBriones Company uses process costing in its 2 producing departments: 1 & 2. For Department 2, normal spoilage is 5% of output. Inspection and identification of spoilage take place at the end of the process, and then materials are added after inspection.

Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for conversion costs.

A total of 16,000 units were completed and transferred to finished goods. At the end of the month, 10,000 units were still in process, estimated to be 60% complete as to conversion costs.

Required: Cost of production report for Department 2

 

 

 

 

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