Reference no: EM132683348
Shalom Company manufactures paint in three departments using a process cost system with a FIFO cost flow assumption. Selected cost and production data for the Blending Department, the second department in the production process, for the month just ended, are as follows:
Units in beginning work in process (100% complete materials & 60% complete conversion costs) .... 5,000
Units received from Mixing Department................................................................................................ 25,000
Units transferred to Finishing Department............................................................................................. 20,000
Units in ending work in process.............................................................................................................. 7,000
Units spoiled due to normal spoilage ..................................................................................................... 3,000
Work in process, beginning inventory:
Cost from preceding department .................................................................................................... P 4,200
Materials.......................................................................................................................................... 1,960
Labor ................................................................................................................................................ 895
Factory overhead ............................................................................................................................. 685
Costs added during the period:
From preceding department............................................................................................................ P 15,900
Materials.......................................................................................................................................... 8,775
Labor ................................................................................................................................................ 4,550
Factory overhead ............................................................................................................................. 3,770
The paint is inspected at the end of the process in the Blending Department to detect any spoiled batches.
Problem 1. Prepare the equivalent production computations for the Blending Department.
Problem 2. Prepare the cost of production report for the Blending Department.