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  • Problem AB Company

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    Raxelle Malubag
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    Department B applies 40% of materials at the start of the process and 60% at the end. 1,200 units were lost after applying 40% materials but before applying the remaining 60% conversion costs. A cost of production report is required for Department B that will include the costs of materials, labor, overhead and units received from Department A to calculate the total cost for the month.

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    Problem-AB-Company

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    Department B applies 40% of materials at the start of the process and 60% at the end. 1,200 units were lost after applying 40% materials but before applying the remaining 60% conversion costs. A cost of production report is required for Department B that will include the costs of materials, labor, overhead and units received from Department A to calculate the total cost for the month.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Problem AB Company

    Uploaded by

    Raxelle Malubag
    Department B applies 40% of materials at the start of the process and 60% at the end. 1,200 units were lost after applying 40% materials but before applying the remaining 60% conversion costs. A cost of production report is required for Department B that will include the costs of materials, labor, overhead and units received from Department A to calculate the total cost for the month.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    LOST UNITS - NORMAL; UNEVEN APPLICATION

    Department B of AB Company applies 40% materials at the start of the process, 60% at the end.
    Labor and overhead are uniformly applied

    In process, March 1 3,200 (1/4 completed)


    Received from Dept A 22,000
    In process, March 31 4,000 (1/2 completed)
    Lost units 1,200

    On the units lost, considered by the company as NORMAL, these were lost after applying
    40% of the materials requirement and 60% conversion costs.

    Cost Data
    Materials 9,360.00
    Labor 5,480.00
    Overhead 2,192.00
    The cost received from Dept A totaled P16 720 and the cost las month on the
    3,200 units amount to P2,248
    Prepare cost of production report of Dept B.

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