Problem 1. Colgate Palmolive Philippines employs a process cost system in the manufacture of toothpaste. Two departments are involved in the process: Department 1 and Department 2. No lost units are discovered in both departments. Below are the data in Department 2 for the months of June and July:
June:
- In process at the beginning: 3,600 units
- Materials: 60%
- Conversion costs: 33 1/3%
- Transferred in from Department 1: 9,000 units
- In process at the end: 2,400 units
- Materials: 50%
- Conversion costs: 25%
July:
- In process at the beginning: ?
- Materials: ?
- Conversion costs: ?
- Transferred in from Department 1: 7,500 units
- In process at the end: 2,700 units
- Materials: 33 1/3%
- Conversion costs: 16 2/3%
Costs:
- Costs of in process, beginning: P12,330
- Costs from Department 1: P4,050
- Materials: P2,160
- Conversion costs: P8,460
- Transferred in costs from Department 1: P14,784
- Materials costs added: P2,592
- ?
- ?
- ?
- P9,675
- P11,730
- P3,384
REQUIRED: Prepare a cost of production report for the months of June and July using:
1. FIFO method
2. WA method
