Ultra Ceramic Products presented the following data for its operations for the month of October,...
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Ultra Ceramic Products presented the following data for its operations for the month of October, 2020: Dept 1 Dept 2 Work in process, July t. 1(Conversion costs, 60%) 7,000 units 6,000 units Conversion costs 30% Transferred to Dept 2 20,000 units 20,000 units Transferred out Work in process, July 31 (Conversion costs 80%) 5,000 units 3,500 units Conversion costs 40% Lost in production Normal 1,000 units 1,000 units Normal Abnormal 1,000 units 1,500 units Abnormal In Department 1, 100% materials are applied at the start of processing. Conversion costs are Incurred evenly throughout the process. Inspection point is done at 50% conversion costs. Work in process, July 1 P13,426.00 Added in July: Material costs 22,400.00 Labor costs 11,440.00 Applied overhead costs 16,224.00 In Dept 2, materials are added at the end of processing at which point inspection also takes place. conversion costs are incurred uniformly throughout the process. Work in process, July 1 P17,334.00 Cost received from Dept. 1 50,289.00 Added in July: Material costs 20,500.00 Labor costs 10,829.00 Applied overhead costs 16,796.00 Required: Cost of Production report for Dept 1 and Dept 2 for the month of July 2020
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