ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP.beg (60%...

Compute for the total cost transferred to the next department using average costing.

Extracted text: ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP.beg (60% materials, 35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials, 75% labor and 50% FOH), 1,500 units. Cost data follows: Cost this Month WIP,beg P1,260 Materials P36,240 Labor 770 10,780 FOH 1,400 21,725