Reference no: EM133016153
Question - Wartortle Company manufactures chemical products through continuous process in different departments. Each department has an independent cost accountant who prepares cost of production report. The company uses FIFO costing method.
As the assigned cost accountant, the following production data for Department 1 for the month of November 2017 were provided:
Work in process, November 1 (70% completed): 7,000 liters
Started in process: 35,000 liters
Work in process, November 30 (60% completed): 6,000 liters
Normal lost units (continuous): 1,000 liters
In this department, costs are applied as follows:
Materials - added at the start
Labor and overhead - uniformly applied throughout the production process
The below were costs incurred in November for Department 1:
Materials: P44,200
Direct Labor: 15,750
Overhead: 9,525
Work in process - November 1: 10,000
Required - What is the equivalent units of production for materials? How much is the cost allocated to ending work in process?