Kaagapay2 Company has the following information for the month of November: Started in process units, 400,000; Work in process, beg, (35% complete) 80,000 units; Normal spoilage, 14,000 units; Abnormal spoilage, 20,000 units; Work in process, end (70% complete), 58,000 units; Completed and transferred out, 388,000 units. Costs incurred last month were: Materials, P60,000; Conversion costs, P40,000. All materials are added at the start of the production process. The company inspects goods at 75% completion as to conversion costs. The costs per EUP for materials and conversion costs are P1 and P1.50 respectively. What is the amount assigned to period cost for the month using FIFO?
Kaagapay2 Company has the following information for the month of November: Started in process units, 400,000; Work in process, beg, (35% complete) 80,000 units; Normal spoilage, 14,000 units; Abnormal spoilage, 20,000 units; Work in process, end (70% complete), 58,000 units; Completed and transferred out, 388,000 units. Costs incurred last month were: Materials, P60,000; Conversion costs, P40,000. All materials are added at the start of the production process. The company inspects goods at 75% completion as to conversion costs. The costs per EUP for materials and conversion costs are P1 and P1.50 respectively. What is the amount assigned to period cost for the month using FIFO?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Kaagapay2 Company has the following
information for the month of November:
Started in process units, 400,000; Work
in process, beg, (35% complete) 80,000
units; Normal spoilage, 14,000 units;
Abnormal spoilage, 20,000 units; Work in
process, end (70% complete), 58,000
units; Completed and transferred out,
388,000 units. Costs incurred last month
were: Materials, P60,0003; Conversion
costs, P40,000. All materials are added at
the start of the production process. The
company inspects goods at 75%
completion as to conversion costs. The
costs per EUP for materials and
conversion costs are P1 and P1.50
respectively. What is the amount
assigned to period cost for the month
using FIFO?
PO
P37,500
P42,500
P50,000
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