Prepare a separate cost of production report

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Reference no: EM133091344

Problem - The October data for CPA Company are shown below:

Department 1 Department 2

Units started in process 25,000

Units received from previous department 15,000

Units transferred to finished goods inventory 7,000

Units completed but not transferred 1,000

Ending units in process 10,000 (80% direct Materials, 7,000

65% Conversion costs) (75% conversion costs)

Costs added by department:

Direct materials P12, 650

Direct Labor 13,545 P9,805

Manufacturing Overhead (applied) 5,160 6,625

Required - For both departments:

1. Compute equivalent unit of production.

2. Prepare a separate cost of production report.

Reference no: EM133091344

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