PROBLE P10-1 Drummond Corporation uses process costing underaverage method. Production costs are applied unevenly throughout the process. It has two divisions–G and H. The ollowing data was gathered for the month of December 2015. You are required to prepare the cost of production report. December 2015 Department A Department B Quantity Work in process, beg. Stage of completion Started in process Finished and transferred to next dept. Finished and on hand Work in process, end Stage of completion 8,000 4,000 25% 40% 18,000 20,000 18,000 20,000 6,000 6,000 40% 30%
PROBLE P10-1 Drummond Corporation uses process costing underaverage method. Production costs are applied unevenly throughout the process. It has two divisions–G and H. The ollowing data was gathered for the month of December 2015. You are required to prepare the cost of production report. December 2015 Department A Department B Quantity Work in process, beg. Stage of completion Started in process Finished and transferred to next dept. Finished and on hand Work in process, end Stage of completion 8,000 4,000 25% 40% 18,000 20,000 18,000 20,000 6,000 6,000 40% 30%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P10-1 Drummond Corporation uses process costing underaverage method. Production costs
PROBLEMS
Die applied unevenly throughout the process. It has two divisions-G and H. The
ollowing data was gathered for the month of December 2015. You are required to
prepare the cost of production report.
December 2015
Department A Department B
Quantity
Work in process, beg.
Stage of completion
Started in process
Finished and transferred to next dept.
8,000
25%
4,000
40%
18,000
20,000
20,000
18,000
Finished and on hand
Work in process, end
Stage of completion
6,000
6,000
40%
30%
In process, beginning
Cost from preceding department
P
P 3,200
6,200
4,000
Materials
7,300
5,000
3,400
P18,900
Labor
2,000
P12,200
Overhead
Costs added this month:
Cost from preceding dept.
Materials
Labor
Overhead
?
9,170
20,680
13,920
9,200
5,980
3,920
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