Problem 8. Nofat Company produces a product in three departments. The product is cut out of sheet metal in the Cutting Department, then transferred to the Forming Department, where it is bent to shape...

Extracted text: Problem 8. Nofat Company produces a product in three departments. The product is cut out of sheet metal in the Cutting Department, then transferred to the Forming Department, where it is bent to shape and certain parts purchased from outside vendors are added to the unit. Finally, the product is transferred to the Finishing Department where it is painted and packaged. The company uses a process costing system with an average cost flow assumption to account for its work in process inventories. Materials are added at two different stages in the Forming Department. Material A is added at the beginning of the process, and MaterialB is added at the end of the process. At the end of May, there were 600 units in process in the Forming Department, 50% complete as to labor and overhead. During June, 3,900 units were received from the cutting Department, and 4,100 units were completed and transferred Department. At the end of June, there were 400 units still in process in the Forming Department, 30% complete as to labor and overhead. Cost data related to June operations in the Forming the Finishing Department partment, 30% compiee as rations in the Forming Department Costs charged to the department Beginning Inyty. Cost from preceding dept. Material A Material B Conversion cost Added this period P 67,410 21,200 16,400 17.650 P 122,660 P 9,090 4,000 1,340 P14,430 Requirements: 1. Equivalent production for Material A, Materials B and conversion cost • 2. Total costs of the units completed and transferred • 3. Total costs of the units in process, end