Reference no: EM132738655
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: The evaporation loss for the month is
a. none of the given choices
b. 2,880
c. 3,792
d. 720