1.) Total costs transferred to the Storeroom2.) Total costs transferred to Department 2 Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, "brilliant"Manufacturing starts in Department 1 where all materials are added at the start of the process. The good units arthen transferred to Department 2 where all the incremental materials needed for its completion are added after finainspection. In Department 1, units are inspected at the 100% stage of production while in Department 2, inspectioItakes place when the units are 90% completed. Department 1 uses FIFO costing while Department 2 uses thweighted average costing.The production data for the month of February show the following:Department 1Department 2UNITSUnits in process, February 1, 2014Work completedUnits in process, February 28Work to be completedStarted in process during FebruaryNormal spoilageAbnormal spoilageWork in Process, February 1:Transferred inMaterials8,0004,0001/54/512,0001/37,0002/760,000(4% of units started in process)(25% of normal spoilage)1,000500P -P 216,000P 156,000P 456,720P 343,800Conversion costsP 449,160Current costs:P -P3,168,000P4,942,080Transferred inP 2P1,344,000MaterialsConversion costsP2,052,000

Name: 1.) Total costs transferred to the Storeroom2.) Total costs transferre
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 1.) Total costs transferred to the Storeroom2.) Total costs transferred to Department 2 Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, "brilliant"Manufacturing starts in Department 1 where all materi