Problem 10. Cost of Production Report and Journal Entries. The departmental heads of Glorieta Factories, Inc., have submitted the monthly production reports for June, 2014. These reports have been.sum- marized as follows: Trimming _Assembly Finishing Department Department — Department Quantity: Started in Process 6,000 0 7 Transferred in 0- 5,400 5,000 ‘Transfered out 5,400 5,000 a Work in Process — End 600 ‘400 ped Stage of Completion of Work in Process - End: Materials Complete 95% a Labor 60% 715% a Overhead 60% 85% om ——— wmm—ONMm™™a>>$s$sSProblem 10-10- Continued Costs are allocated as follows: Allocation Materials Labor Overhead Trimming Department P33,600 P18,500 P9,217 Assembly Department 16,786 14,840 7,120 Finishing Department 6,400 10,320 4,960 Required: 1 Compute equivalent units of production. 2. Prepare the cost of production report. Round total costs to the near- est peso. ; 3. Prepare journal entries to record the following: To charge materials, labor, and overhead to production. To record the transfer of goods from the Trimming Department to the Assembly Department. c. To record the transfer of goods from the Assembly Department to the Finishing Department. To record the completion of goods and their transfer to Finished a b.EEEEEEIEA cauivatent Units of Production and Cost of Production Report. Lavandera Company manufactures a single product in two processing departments. The following information is available for the month of Apri] 2014; Department 1 Department 2 QUANTITIES Beginning work in process: Direct materials, 100% complete; Conversion costs, 65% complete 5,000 Direct materials, 100% complete; Conversion costs, 40% complete 7,000 Started in process during April 50,000 ‘Transferred out to Department 2 45,000 ‘Transferred out to finished goods 43,000 Ending work in process: Direct materials, 100% complete; Conversion costs, 75% complete 10,000 Direct materials, 100% complete; Conversion costs, 50% complete _ 9,000 COSTS DATA: Beginning work in process inventory: ‘Transferred in costs 0 28,000 Cost added this department: teed eae P12,000 P14,800 labor 8,500 9,200 Applied overhead 10,300 11495 Added during April: Direct materials ‘65,000 45,000 Direct labor 90,000 770,000 Applied overhead 55,000 40,000 Required: Assuming the company uses the average costing method. 1, Compute the equivalent units of production for each department. Prepare a cost of production report f the > Thonth of April 2014. for both departments forPgs) erate Cost of Production Report - Two Departments Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2014: Department 1 Department 2 UNITS: Beginning work in process: Conversion costs, 65% complete 5,000 Conversion costs, 40% complete 7,000 Started in production during May 50,000 Transferred out to Department 2 45,000 ‘Transferred out to finished goods inventory 43,000 Ending work in process: Conversion costs, 75% complete 10,000 Conversion costs, 50% complete 9,000 costs: Beginning work in process: ‘Transferred in costs from prior department Added this department: Direct materials Direct labor Manufacturing overhead (applied) Total ‘Added during the period: Direct materials Direct labor Manufacturing overhead (applied) ‘Total Additional Information: f All direct materials are added at the beginning of the process of each department while conversion costs are applied evenly during the pro- cess, Required: . 1. Compute equivalent units of production for each department. Prepare a cost of production report for both department usii FIFO method. mete