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The TaeOh Mfg. Co. operates two consecutive producing departments, A & B. The following quantity data are on Department A's production in December:
In process, December 1 5,000 units, 1/5 done
Placed in process 50,000 units
In process, December 31 3,000 units, 2/3 done
Transferred out
Cost data: 49,500 units
Cost Last Month
CTM: Materials
Labor P 25,000
Overhead 315,000
Instruction:
Question 1: Using the average cost method, compute for equivalent units of production and prepare cost of production report under each of the following assumptions:
a. Loss occurs at the start
b. Loss occurs at the end
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