Reference no: EM132549662

If the project required 50 hours to completed at a cost of P10 per hour, but should have taken only 45 hours at a cost of P12 per hour.

Required:

Question a. What is the proper journal entry to record the costs?

Cross Company uses process costing. All materials are added at the beginning of the process. The product is inspected when it is 80% converted, and spoilage is identified only at that point. Normal spoilage is 5% of good output. During October 10,500 units were put into process. Current costs were $52,500 for materials, $39770 for labor, and $31,525 for factory overhead. The 3,000 units still in process at the end of October were estimated to be 90% complete. A total of 7,000 units were transferred to finished goods.

Required:

Question a. What is the Cost of units completed and transferred?

Question b. What is the Cost of units in process, end?