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Question - This month, the beginning inventory in the first processing department consisted of 1,500 units. The costs and percentage completion of these units in beginning inventory were:
Cost
Percent Complete
Materials costs
P48,000
60%
Labor costs
P32,000
50%
Applied factory overhead
P26,000
A total of 8,500 units were started and 9,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Materials costs P101,800
Labor costs P74,000
Applied factory overhead 68,000
The ending inventory was 70% complete with respect to materials and 60% complete with respect to labor and factory overhead costs.
Required - Create cost of production report using FIFO and weighted-average method with corresponding journal entries.
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