PLEASE DO NOT REJECT. Show solution in good accounting form. The following date were provided by Madilim Co.:WIP, begMaterials,WIP, begMaterials, chemicals (?complete)Materials, cans (?Complete)Labor (75% incomplete)Overhead (75%incomplete)Started during the4,000 gallonsWIP, endMaterials, chemicals(100% complete)Materials, cans (?Complete)Labor (20% incomplete)Overhead (20%incomplete)P456,000chemicalsLabor - P100 perhourOverheadP62,500P18,750Cost addedP2,284,00021,000monthgallons20,000Transferred to shippingdepartment during theMaterials, cansP70,000gallonsmonthLabor (P100 perhour)OverheadP350,000P105,000Production begins with the blending of various chemicals, which are added at the beginning of theprocess and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage ofcompletion. The gallon cans are then transferred to the shipping department for crafting and shipment.Direct labor and overhead are added continuously throughout the process. Overhead is allocated on thebasis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.

Calculation of units accounted:

Answered: 4,000 gallons WIP, beg Materials,…

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4,000 gallons WIP, beg Materials, chemicals (? complete) Materials, cans (? 000 500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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