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Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in P32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor Applied overhead 90% 70% 35% Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.

Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in P32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor Applied overhead 90% 70% 35% Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...
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Please answer the cost accounting problem from the attached photo below.

The requirements are:

1: Compute equivalent units of production for Assembling Department for the month of June 2018.

2: Prepare a cost of production report for the Assembling Department  for the month of June 2018.

Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in Р32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor 90% 70% 35% Applied overhead Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.
Transcribed Image Text:Problem 11-5: Equivalent Units of Production and Cost of Produc- tion Report. Malakas Corporation is a manufacturing company that uses the average method of costing inventories. Malakas manufactures a single product that is produced in three separate departments: Molding Department, Assembling Department, and Finishing Department. The following in- formation was obtained from the Assembling Department for the month of June 2018. Work in process, inventory, June 1 (2,000 units): Cost % of completion Transferred in Р32,000 100% Costs added: Direct materials Direct labor Overhead P20,000 7,200 5,500 100% 60% 50% During the month of June 10,000 units were transferred in from the Mold- ing Department at a cost of P160,000. P150,000 of costs were added by the Assembling Department composed of the following: Direct materials Direct labor Applied overhead P96,000 36,000 18,000 8,000 units were completed and transferred to the finishing department. At June 30, 4,000 units were still in process. The stage of completion of work in process inventory at June 30, 2018 was as follows: Direct materials Direct labor 90% 70% 35% Applied overhead Required: 1. Compute equivalent units of production for Assembling Department for the month of June 2018. 2. Prepare a cost of production report for the Assembling Department for the month of June 2018.
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