PROBLEM 4 July Corporation uses process costing in its two producing departments. In Department 2, inspection takes place at the 70% stage of completion, after which materials are added to good units. A spoilage rate of 5% of good units is considered normal. Materials are added 30% at the start of the process and 70% following inspection. UNITS Received from Department 1 (at P 7.00 per unit) 12,000 Completed and transferred 9,000 In process, end (90% complete) 2,000 COSTS Added in the department Materials P 22,400 Conversion costs 46,000 REQUIRED: 1. Prepare a Cost of Production Report.
PROBLEM 4 July Corporation uses process costing in its two producing departments. In Department 2, inspection takes place at the 70% stage of completion, after which materials are added to good units. A spoilage rate of 5% of good units is considered normal. Materials are added 30% at the start of the process and 70% following inspection. UNITS Received from Department 1 (at P 7.00 per unit) 12,000 Completed and transferred 9,000 In process, end (90% complete) 2,000 COSTS Added in the department Materials P 22,400 Conversion costs 46,000 REQUIRED: 1. Prepare a Cost of Production Report.
Chapter5: Process Costing
Section: Chapter Questions
Problem 5EA: A company has 1,500 units in ending work in process that are 30% complete after transferring out...
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![PROBLEM 4
July Corporation uses process costing in its two producing departments. In Department 2,
inspection takes place at the 70% stage of completion, after which materials are added to
good units. A spoilage rate of 5% of good units is considered normal. Materials are added
30% at the start of the process and 70% following inspection.
UNITS
Received from Department 1 (at P 7.00 per unit)
12,000
Completed and transferred
9,000
In process, end (90% complete)
2,000
COSTS
Added in the department
Materials
P 22,400
Conversion costs
46,000
REQUIRED:
1. Prepare a Cost of Production Report.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01b7a54c-2efe-4572-a02a-04be32ac028c%2F7fe1cb80-a752-4ff7-97fa-98dc9de6e63d%2Fia473l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROBLEM 4
July Corporation uses process costing in its two producing departments. In Department 2,
inspection takes place at the 70% stage of completion, after which materials are added to
good units. A spoilage rate of 5% of good units is considered normal. Materials are added
30% at the start of the process and 70% following inspection.
UNITS
Received from Department 1 (at P 7.00 per unit)
12,000
Completed and transferred
9,000
In process, end (90% complete)
2,000
COSTS
Added in the department
Materials
P 22,400
Conversion costs
46,000
REQUIRED:
1. Prepare a Cost of Production Report.
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