What is the proper cost of production report

Assignment Help Financial Accounting

Reference no: EM132743418

Question - AVERAGE COSTING PROBLEM: Ka Louie Company manufactures virgin coconut oil that goes through two processing departments. Data foe May 2014 are as follows:

MIXING DEPARTMENT Liters transferred to Bottling Department = 75,000

Liters on hand at the end of month = 9000 (Stage of Completion: 100% for Direct Materials and 60% for Conversion Costs)

Costs incurred during May:

Direct Materials = P18,480

Conversion Costs = P32,160

Beginning Work in Process Inventory:

Liters = 8,000 (costs: Prior Department Costs = P0.00 Direct Materials = P1,680 and Conversion Costs P4,020)

All materials are added at the start of the process in the Mixing Department.

BOTTLING DEPARTMENT

Liters transferred to Finished Goods = 68,000

Liters on hand at the end of month = 15,000 (Stage of Completion: Prior Department Costs = 100% and Conversion Costs = 100%)

Costs incurred during May:

Conversion Costs = P25,900

Beginning Work in Process Inventory:

Liters = 8,000 (Costs: Prior Department Costs = P6,350 and Conversion Costs = P2,220)

Required -

1. What is the equivalent units of production for the Mixing Department and the Bottling Department?

2. What is the proper Cost of Production Report for the Mixing Department and the Bottling Department?

Reference no: EM132743418

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