Reference no: EM132738647
Department B of Ethel Chemicals, Inc. suffers an average evaporation loss of 16%. The production data for the month of May 2019 showed the following:
In process, may 1 (1/4 completed) 5,760 units
Received from prior department 20,000 units
In process, May 31 (60% completed) 1,808 units
The production costs data were as follows:
Cost received from prior department P25,000
Unit cost in Department B for May
Materials P0.40
Labor 0.30
Overhead 0.10
The total costs of completed and transferred to finished goods stockroom for the month amounted to P40, 000.
Problem 1: Department B received 15,000 units from Department A at a unit cost of P0.80. Department B has 2,000 units in process at the beginning with a carried cost from last month of P1,600. Assume that 500 units were lost at the start of the process, the cost of the lost units will be
a. P400
b. none of the given choices
c. P450
d. P4,000