The Cost Accountant of JL Manufacturing Corporation was tasked to present the different analyses for Department 2 using Process Costing. The company provided the following data for the second month of operation:
There are 5,000 inventory units in-process at the beginning of February 2021 which are 60% complete. Department 2 received 40,000 newly started units for the month of February. At the end of the month, 35,000 were completed and transferred-out. In-process units at the end of month have 80% completion. No loss units.
If Materials are added 100% at the end of the process and cost are unevenly applied. The Cost incurred by Department 2 for the February 2021 are as follows:
Particulars
Previous Cost
Current Cost Incurred
Cost fr preceding
P24,000
P120,000
Materials
P 52,500
P280,000
Conversion Costs
P 24,500
P40,000
101,000
440,000
(A) Compute the unit cost for Department 2 at the End of February 2021 using Average Method
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