Department 1 & 2

Weighted average method, Even Distribution

Crescent Moon Products manufactures one product in two departments on a continuous basis and
uses the average cost method of process cost accounting. The following information was reported
for the month of May 2021:

Production Costs
      Department A       Department B
Work in process, beginning
of month:
   Cost in Department A P 1,900
   Materials P 4,200 P 1,900
   Labor 3,500 1,600
   Factory overhead   1,800 P 9,500     750 4,250
Costs incurred during month:
   Materials P74,425 P60,225
   Labor 56,625 51,650
   Factory overhead  35,200  166,250  17,000  128,875
      Total P175,750 P 135,025

Production Report
Department A Department B
In process, beginning of month  1,600    200
Finished and transferred
during month 18,000 17,000
Work in process, end of month  1,000  1,200
Stage of completion      50%      60%

a) Prepare a cost of production summary for Department A for the month.

b) Prepare a cost of production summary for Department B for the month.