Nagkamali Inc. adds materials at the start of the process in Department B. Units received from Department A costs P11.10 while in Department B, unit costs for materials and conversion costs were P1 and P1.22 respectively. The company's quantity data showed that WIP beg, which had a cost of P80,000, had 8,000 units and were % done. During the period, Department A transferred 50,000 units to Department B. At the end of the period, WIP has 10,000 units which are 1/5 done and there were 3,000 normal lost units. Compute for the total cost of units transferred to finished goods using average costing assuming that the lost units were spoiled at the start of processing.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nagkamali Inc. adds materials at the start of the process in Department B. Units
received from Department A costs P11.10 while in Department B, unit costs for
materials and conversion costs were P1 and P1.22 respectively. The company's
quantity data showed that WIP beg, which had a cost of P80,000, had 8,000 units
and were % done. During the period, Department A transferred 50,000 units to
Department B. At the end of the period, WIP has 10,000 units which are 1/5 done
and there were 3,000 normal lost units. Compute for the total cost of units
transferred to finished goods using average costing assuming that the lost units
were spoiled at the start of processing.
Transcribed Image Text:Nagkamali Inc. adds materials at the start of the process in Department B. Units received from Department A costs P11.10 while in Department B, unit costs for materials and conversion costs were P1 and P1.22 respectively. The company's quantity data showed that WIP beg, which had a cost of P80,000, had 8,000 units and were % done. During the period, Department A transferred 50,000 units to Department B. At the end of the period, WIP has 10,000 units which are 1/5 done and there were 3,000 normal lost units. Compute for the total cost of units transferred to finished goods using average costing assuming that the lost units were spoiled at the start of processing.
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