Reference no: EM132626404
ABM Company uses two departments to produce a product. The following data were taken from the books for the month of January 2012.
Department 1 Department 2
Units: Started 60,000
Completed and transferred 40,000 30,000
In Process, end 20,000 10,000
Stage of completion 75% 80%
Costs: Materials P480,000 P245,000
Labor 330,000 190,000
Factory Overhead 220,000 114,000
Department 1- all materials added at the beginning of the process.
Department 2-50% of the materials are added at the beginning of the process, remaining 50% added at the end of the process.
Required:
Problem 1: Cost of Production report