Tech Enterprise makes a single product in two departments. The production data for Department B for August 2019 follows: Quantities: In process, August 1 (40% complete) 4,000 unitsReceived from Department A 30,000 unitsCompleted and transferred 25,000 unitsIn process, August 31 (60% complete) 6,000 units Production costs: August 1August 31Transferred inP48,900P267,300Materials11,400202,500Conversion cost5,820243,000Materials are added at the start of the process, and losses normally occur during the early stage of the operation.Cost of goods manufactured using FIFO method.

FIFO: First in First out it is a method of inventory valuation where inventory that is purchased…

Answered: Tech Enterprise makes a single product…

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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Tech Enterprise makes a single product in two departments. The production data for Department B for August 2019 follows:

Quantities:

In process, August 1 (40% complete)		4,000 units
Received from Department A		30,000 units
Completed and transferred		25,000 units
In process, August 31 (60% complete)		6,000 units

Production costs:
	August 1	August 31
Transferred in	P48,900	P267,300
Materials	11,400	202,500
Conversion cost	5,820	243,000

Materials are added at the start of the process, and losses normally occur during the early stage of the operation.

Cost of goods manufactured using FIFO method.

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