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.

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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