Lao Company produces a product in three departments. The following information pertains to the second department for the month of October: a. There was no beginning work in process inventory. b. Received from the first department, 200,000 units, total cost P570,000. c. Work in process, October 31: 25,000 pounds, 80 percent complete with respect to conversion costs. d. Units completed and transferred out: 165,000 pounds. The following costs were added during the month: Materials, P380,000; Conversion, P925,000. e. Materials are added at the beginning of the process, and units are lost evenly throughout the process How much is the cost of ending inventory?
Lao Company produces a product in three departments. The following information pertains to the second department for the month of October: a. There was no beginning work in process inventory. b. Received from the first department, 200,000 units, total cost P570,000. c. Work in process, October 31: 25,000 pounds, 80 percent complete with respect to conversion costs. d. Units completed and transferred out: 165,000 pounds. The following costs were added during the month: Materials, P380,000; Conversion, P925,000. e. Materials are added at the beginning of the process, and units are lost evenly throughout the process How much is the cost of ending inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lao Company produces a product in three departments. The following information pertains to the second department for the month of October:
a. There was no beginning work in process inventory.
b. Received from the first department, 200,000 units, total cost P570,000.
c. Work in process, October 31: 25,000 pounds, 80 percent complete with respect to conversion costs.
d. Units completed and transferred out: 165,000 pounds. The following costs were added during the month: Materials, P380,000; Conversion, P925,000.
e. Materials are added at the beginning of the process, and units are lost evenly throughout the process
How much is the cost of ending inventory?
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