Reference no: EM132644525

Samahan Inc. manufactures a highly sensitive smoke alarm. The company uses the FIFO method for process costing and for costing goods sold. In costing finished goods, the unit cost tor units completed from work in process inventory at the beginning is kept separate from the unit cost of smoke alarm started and completed during the month. The total manufacturing costs for the month of June is P264,00Mg and 2,750 units are completed during the month.

The inventories at the beginning ofJune are as follows:

Smoke alarm in process Wed 80% completed) ........... 1,250 units P128,000

Smoke alarm on hand (completed) ...... 600 units 76,800

The inventories at the end of June are:

Smoke alarms in process (50% complete) 500 units

Smoke alarms on hand (complete) .......... 700 units

Problem 1: Compute the cost assigned to Work in Process end.

a. 33,000

b. 33,200

c. 64,400

d. 64,000

Problem 2: Compute the cost assigned to Finished goods end.

a. 79,200

b. 92,400

c. 66,000

d. 92,000