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Problem 1: In Baguio Corp, sixty percent of materials are added when the goods are ¼ done and the remainder, when they are ¾ done. The equivalent production of materials is 20,000 and for conversion cost, 20,500. There are 2,000 units in the ending WIP, ¼ done. WIP beginning was 4/5 done. Normal loss at the beginning is 500 units. Unit cost from preceding department was P10.40. In this department, materials unit cost was P3 and conversion unit cost was P2. How much is the adjustment for lost unit for each remaining good unit?
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