Equivalent Units of Production for each department
Extracted text: PROBLEM 3 The BSA Manufacturing Corp. has its product processed in Department I, Il and III. After the goods are processed in Department I, they are transferred to Department II and III for additional processing. From Department III, they are transferred to the stockroom for delivery to customers. The production data for December 2017 are given below: Department I Department II Department II Quantity Data: In Process, Beg 45,000 units, 1/3 done 50,000 units, 40% undone 60,000 units, 60% complete Placed in Process ? units ? units 210,000 units ? units ? units, 35% incomplete 200,000 units Received from Previous Department Transferred to Stockroom 230,000 units ? units ? units, 5/9 undone Total Units to be Accounted For 270,000 units In Process, End ? units, 5/8 done Equivalent Units of Production (EUP) Cost Data: In Process, Dec. 1 Factory Costs: Materials P180,000 P600,000 Р300,000 P675,000 P390,000 P200,000 100,000 120% of Labor Labor 480,000 120,000 PO.40 per EUP Factory Overhead In Department I, all the materials are added at the start of the process. In Department II, materials are added as follows: 50% at ¼ of the process, 30% at 2/4 of the process, 50% of Labor and the remainder at 70% of the process. In Department II, all costs (materials and conversion costs) are evenly applied throughout the process.