Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in P32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor Applied overhead 90% 70% 35% Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.
Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in P32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor Applied overhead 90% 70% 35% Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the cost accounting problem from the attached photo below.
The requirements are:
1: Compute equivalent units of production for Assembling Department for the month of June 2018.
2: Prepare a cost of production report for the Assembling Department for the month of June 2018.
Transcribed Image Text:Problem 11-5: Equivalent Units of Production and Cost of Produc-
tion Report.
Malakas Corporation is a manufacturing company that uses the average
method of costing inventories. Malakas manufactures a single product
that is produced in three separate departments: Molding Department,
Assembling Department, and Finishing Department. The following in-
formation was obtained from the Assembling Department for the month
of June 2018.
Work in process, inventory, June 1 (2,000 units):
Cost
% of completion
Transferred in
Р32,000
100%
Costs added:
Direct materials
Direct labor
Overhead
P20,000
7,200
5,500
100%
60%
50%
During the month of June 10,000 units were transferred in from the Mold-
ing Department at a cost of P160,000. P150,000 of costs were added by the
Assembling Department composed of the following:
Direct materials
Direct labor
Applied overhead
P96,000
36,000
18,000
8,000 units were completed and transferred to the finishing department.
At June 30, 4,000 units were still in process. The stage of completion of
work in process inventory at June 30, 2018 was as follows:
Direct materials
Direct labor
90%
70%
35%
Applied overhead
Required:
1.
Compute equivalent units of production for Assembling Department
for the month of June 2018.
2.
Prepare a cost of production report for the Assembling Department
for the month of June 2018.
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