Reference no: EM132984722

Question: Aysa Inc. produces calendars in a two-process, two department operation. In the Printing department, calendars are printed and cut. In the Assembly Department, the material received from Printing is assembled into individual calendars bound. Each department maintains its own Work in Process Inventory, and costs are assigned using average process costing. In Assembly, conversion costs are incurred evenly throughout the process; direct material is added at the end of the process. For September 2017, the following production and cost information is available for the Assembly Department:

Beginning WIP Inventory: 5,000 calendars (30% completed as to conversion);

Transferred in cost, P7,500; conversion cost, P1,093

Transferred in during September: 80,000 calendars

Current period costs: Transferred in, P80,000 ; direct materials, P10,270;

conversion, P13,991

Ending WIP Inventory: 6,000 calendars (80% completed as to conversion)

For the Assembly Department, compute the following:

1. Equivalent units of production for each cost component

2. Cost per EUP for each cost component

3, Cost transferred to Finished Goods Inventory

4. Cost of ending WIP inventory

Use the information from above and assume that Aysa, Inc. uses the FIFO method of process costing. For the Assembly Department, compute the following:

4. Equivalent units of production for each cost component

5. Cost per EUP for each cost component

6. Cost transferred to Finished Goods Inventory

7. Cost of ending WIP inventory