UNEVEN APPLICATION OF COST Zay Corporation manufactures a product in two departments, Cutting and Assembly. During February, the Assembly department received 2,100 units from the Cutting department and 2,000 units were transferred out of the Assembly department to finished goods. At the end of the month, 500 units were still in process, they were 80% complete as to materials and 60% complete as to conversion cost. Cost data related to February operations follow: Costs charged to the dep’t Beg. Invty Added this Period Costs from preceding Dep’t P11,800 P63,200 Materials 4,000 21,200 Direct labor 1,200 17,660 Factory Overhead 2,400 35,320 Required: Prepare the February cost of production report for the Assembly Dep’t
Exercise 6-7. UNEVEN APPLICATION OF COST
Zay Corporation manufactures a product in two departments, Cutting and Assembly. During
February, the Assembly department received 2,100 units from the Cutting department and 2,000 units
were transferred out of the Assembly department to finished goods. At the end of the month, 500
units were still in process, they were 80% complete as to materials and 60% complete as to conversion
cost. Cost data related to February operations follow:
Costs charged to the dep’t Beg. Invty Added this Period
Costs from preceding Dep’t P11,800 P63,200
Materials 4,000 21,200
Direct labor 1,200 17,660
Factory Overhead 2,400 35,320
Required:
Prepare the February cost of production report for the Assembly Dep’t.
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