Problem 3: ABM Company uses two departments to produce a product. The following data were taken from the books for the month of January, 2014. Department 1 Department 2 Units: Started Completed & transferred In process, end Stage of completion 60,000 40,000 20,000 75% 30,000 10,000 80% Costs: P 245,000 190,000 114,000 Department 1- all materials added at the beginning of the process. P 480,000 330,000 220,000 Materials Labor Factory overhead Department 2- 50% of the materials are added at the beginning of the process, remaining 50% added at the end of the process.
Problem 3: ABM Company uses two departments to produce a product. The following data were taken from the books for the month of January, 2014. Department 1 Department 2 Units: Started Completed & transferred In process, end Stage of completion 60,000 40,000 20,000 75% 30,000 10,000 80% Costs: P 245,000 190,000 114,000 Department 1- all materials added at the beginning of the process. P 480,000 330,000 220,000 Materials Labor Factory overhead Department 2- 50% of the materials are added at the beginning of the process, remaining 50% added at the end of the process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute for the EUP of Department 2.
Transcribed Image Text:Problem 3:
ABM Company uses two departments to produce a product. The following data
were taken from the books for the month of January, 2014.
Department 1
Department 2
Units:
Started
Completed & transferred
In process, end
Stage of completion
60,000
40,000
20,000
75%
30,000
10,000
80%
Costs:
P 245,000
190,000
114,000
Department 1- all materials added at the beginning of the process.
P 480,000
330,000
220,000
Materials
Labor
Factory overhead
Department 2- 50% of the materials are added at the beginning of the process,
remaining 50% added at the end of the
process.
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