Lazada Inc. adds materials at the beginning of the process in department USB. Conversion costs were 70% complete as to the 9,500 work-in-process units on September 1 and 40% incomplete as to the 7,000...

Lazada Inc. adds materials at the beginning of the process in department USB.  Conversion costs were 70% complete as to the 9,500 work-in-process units on September 1 and 40% incomplete as to the 7,000 work-in-process units on September 30.  During September, 12,000 units were completed and transferred to the next department.  An analysis of the cost relating to work-in-process on September 1 and to production activity for September is as follows:


Work-in-process, September 1
Materials                                          P10,000
Conversion Costs                             P12,000


Costs incurred during September
Materials                                          P45,000
Conversion Costs                             P60,000




The total cost per equivalent unit for September under FIFO is: