Reference no: EM132822684

Handsome Tool Company manufactures a product in two departments, Shaping and Assembly. The product is cut out of sheet metal, bent to shape, and painted in the Shaping Department. Then, it is transferred to the Assembly Department where component parts purchased from outside vendors are added to the unit. A process cost system with a FIFO cost flow assumption is used to account for work in process inventories.

Data related to September operations in the Assembly Department follow:

Units in beginning inventory (90% materials, 80% labor and overhead) 1,000

Units received from the Shaping Department this period 3,000

Units transferred to Finished Goods Inventory this period 2,800

Units in ending inventory (50% materials, 40% labor and overhead) 1,200

Beginning Added

Costs charged to the department: Inventory This Period

Costs from the preceding department Php23,600 Php29,250

Materials 7,700 13,375

Direct labor 3,500 9,672

Factory overhead 4,900 16,616

Required:

Problem 1: What is the September cost of production report on a FIFO basis for the Assembly Department.