Reference no: EM132834995

Question - ABC Company produces baseball bats and cricket paddles using FIFO. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed to conversion, and completed to direct materials. The beginning inventory included P40,000 for materials and P60,000 for conversion cost. Ending work in process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process.

Beginning work in process in the finishing department was 80% completed to conversion. Direct materials for finishing the units are added near the end of the process. Beginning inventories included P24,000 for transferred-in cost and P28,000 for conversion cost. Ending inventory was 30% complete. Additional information about the two departments follows:

Cutting Finishing beginning work in process units 20,000 24,000

Units started this period 60,000

Units transferred this period 64,000 68,000

Ending work in process units 20,000

Material cost added P48,000 P34,000

Conversion cost 28,000 68,500

Transferred out cost 128,000

Required -

1. Determine the following in the Finishing Department: Equivalent Units of Production for Materials

2. Total costs of units completed and transferred.

3. Equivalent Units of Production for Conversion Cost

4. Equivalent Unit Cost for Materials

5. Equivalent Unit Cost for Conversion Cost

6. Costs to complete the work in process inventory- beginning

7. Total costs of work in process-end.

8. Total Equivalent Unit Cost