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Problem 2. Starlight Manufacturing Company uses two types of materials in its processing operation and adds these materials as follows: 4 pounds of Material X at the start of the process and two pounds of Material Y when the process is 50% complete. Conversion costs are incurred uniformly throughout the process. At 50% stage of completion, inspection occurs and any spoiled units are scrapped. 5% of the units processed up to inspection point are considered normal. The following data pertains to August operation of Starlight Company. In process, Aug 1 In process, Aug 31 Units completed & transferred Unit costs: Material X Material Y Conversion costs per EUP 18,000 units, 75% complete 6,000 units, 25% complete 73,800 units P6.00 per pound P4.00 per pound P8.00 REQUIRED: Prepare a cost of production report

Problem 2. Starlight Manufacturing Company uses two types of materials in its processing operation and adds these materials as follows: 4 pounds of Material X at the start of the process and two pounds of Material Y when the process is 50% complete. Conversion costs are incurred uniformly throughout the process. At 50% stage of completion, inspection occurs and any spoiled units are scrapped. 5% of the units processed up to inspection point are considered normal. The following data pertains to August operation of Starlight Company. In process, Aug 1 In process, Aug 31 Units completed & transferred Unit costs: Material X Material Y Conversion costs per EUP 18,000 units, 75% complete 6,000 units, 25% complete 73,800 units P6.00 per pound P4.00 per pound P8.00 REQUIRED: Prepare a cost of production report

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2. Starlight Manufacturing Company uses two types of materials in its processing operation and adds these materials as follows: 4 pounds of Material X at the start of the process and two pounds of Material Y when the process is 50% complete. Conversion costs are incurred uniformly throughout the process. At 50% stage of completion, inspection occurs and any spoiled units are scrapped. 5% of the units processed up to inspection point are considered normal. The following data pertains to August operation of Starlight Company. In process, Aug 1 In process, Aug 31 Units completed & transferred Unit costs: Material X 18,000 units, 75% complete 6,000 units, 25% complete 73,800 units Material Y Conversion costs per EUP P6.00 per pound P4.00 per pound P8.00 REQUIRED: Prepare a cost of production report
Transcribed Image Text:Problem 2. Starlight Manufacturing Company uses two types of materials in its processing operation and adds these materials as follows: 4 pounds of Material X at the start of the process and two pounds of Material Y when the process is 50% complete. Conversion costs are incurred uniformly throughout the process. At 50% stage of completion, inspection occurs and any spoiled units are scrapped. 5% of the units processed up to inspection point are considered normal. The following data pertains to August operation of Starlight Company. In process, Aug 1 In process, Aug 31 Units completed & transferred Unit costs: Material X 18,000 units, 75% complete 6,000 units, 25% complete 73,800 units Material Y Conversion costs per EUP P6.00 per pound P4.00 per pound P8.00 REQUIRED: Prepare a cost of production report
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