Problem 3. FIFO CostingPapaya Company manufactures soap in two departments in a continuousprocess. The following data is available for May 2020.Department 1Department 2UNITS:Beginning work in process:Conversion costs, 65% completeConversion costs, 40% completeStarted in production during MayTransferred out to Department 2Transferred out to Finished GoodsEnding work in process:5,0007,00050,00045,000Eus 43,000Conversion costs, 75% completeConversion costs, 50% complete10,000200 9,000COSTS:Beginning work in process:07 21Transferred in costs from prior departmentAdded this department:P30,000Direct MaterialP13,0008,500Manufacturing Overhead (applied) 10.97514,6009,20011.760P65.560Direct LaborTotal biviaAdded during the period:P32.475P65,00090,00052,825Direct materialsP45,00070,000Direct LaborManufacturing Overhead (applied)39,962w doubeP207.825P154.962TotalAdditional Information:while conversion costs are applied evenly during the process.Required:a. Department 1b. Department 2a, Department 1b.Department2652. a cost of report.All are at the of the of department1. of production.

Department 1 Physical units Materials Conversion Work in Process Beginning 5000 Started…

Problem 3. FIFO Costing Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2020. Department 1 Department 2 UNITS: Beginning work in process: Conversion costs, 65% complete Conversion costs, 40% complete Started in production during May Transferred out to Department 2 Transferred out to Finished Goods Ending work in process: 5,000 7,000 50,000 45,000 43,000 Conversion costs, 75% complete Conversion costs, 50% complete 10,000 9,000 COSTS: Beginning work in process: Transferred in costs from prior department blat Added this department: P30,000 Direct Material Direct Labor Manufacturing Overhead (applied) 10.975 P13,000 8,500 14,600 9,200 11.760 P65.560 Total viat P32.475 Added during the period: Direct materials Direct Labor Manufacturing Overhead (applied) 39.962 Total P65,000 P45,000 70,000 90,000 52.825 P207.825 P154.962 neni Additional Information: All direct materials are added at the beginning of the process of each department while conversion costs are applied evenly during the process 1. Compute equivalent unit of production. a. Department 1 b. Department 2 Required: 2. Prepare a separate cost of production report a. Department 1 b.Department2

Problem 3. FIFO Costing Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2020. Department 1 Department 2 UNITS: Beginning work in process: Conversion costs, 65% complete Conversion costs, 40% complete Started in production during May Transferred out to Department 2 Transferred out to Finished Goods Ending work in process: 5,000 7,000 50,000 45,000 43,000 Conversion costs, 75% complete Conversion costs, 50% complete 10,000 9,000 COSTS: Beginning work in process: Transferred in costs from prior department blat Added this department: P30,000 Direct Material Direct Labor Manufacturing Overhead (applied) 10.975 P13,000 8,500 14,600 9,200 11.760 P65.560 Total viat P32.475 Added during the period: Direct materials Direct Labor Manufacturing Overhead (applied) 39.962 Total P65,000 P45,000 70,000 90,000 52.825 P207.825 P154.962 neni Additional Information: All direct materials are added at the beginning of the process of each department while conversion costs are applied evenly during the process 1. Compute equivalent unit of production. a. Department 1 b. Department 2 Required: 2. Prepare a separate cost of production report a. Department 1 b.Department2

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Problem 3. FIFO Costing
Papaya Company manufactures soap in two departments in a continuous
process. The following data is available for May 2020.
Department 1
Department 2
UNITS:
Beginning work in process:
Conversion costs, 65% complete
Conversion costs, 40% complete
Started in production during May
Transferred out to Department 2
Transferred out to Finished Goods
Ending work in process:
5,000
7,000
50,000
45,000
Eus 43,000
Conversion costs, 75% complete
Conversion costs, 50% complete
10,000
200 9,000
COSTS:
Beginning work in process:
07 21
Transferred in costs from prior department
Added this department:
P30,000
Direct Material
P13,000
8,500
Manufacturing Overhead (applied) 10.975
14,600
9,200
11.760
P65.560
Direct Labor
Total bivia
Added during the period:
P32.475
P65,000
90,000
52,825
Direct materials
P45,000
70,000
Direct Labor
Manufacturing Overhead (applied)
39,962
w doube
P207.825
P154.962
Total
Additional Information:
while conversion costs are applied evenly during the process.
Required:
a. Department 1
b. Department 2
a, Department 1
b.Department2
65
2. a cost of report.
All are at the of the of department
1. of production.

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