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Topic: Average and FIFO Costing

icole Company employs a process costing system. A unit of product passes throw following activity took place in the Finishing Department during May: Work in Direct material is added at the beginning of the processing in the Fishing 346 Problem 12 Cost Accounting three departments - Molding, Assembly, and Finishing , before it is completed process, May 1 - 1,400 units; transferred in from the Assembly Department - 14.00 spoilage 700; completed and transferred to finished goods inventory - 11.200 Department without changing the number of units being processed. Conversion costs are added evenly throughout the process. The work in process inventory was 70% complete as to conversion costs in May 1 and 40% complete as to conversion costs on May 31. All spoilage is discovered at final inspection, which occurs immediately after the units are completed: 560 of the units spoiled were within the limit considered normal. Nicole Company employs the weighted-average costing method The costs per equivalent unit of production in May are as follows: costs --P5.00; materials - P1.00 and conversion costs - P 3.00 Required: 1. Cost of the units completed and transferred 2. Cost charged to factory overhead control 3. Cost of the units in transferred-in process, end

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