FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using FIFO, the cost of the 12,000 units transferred to Department B is:

Johnson Company adds materials, 50% at the start of the process and 50% at the end of the
process in Department A. Conversion costs were 70% complete as to the 8,000 units in
process on January 1 and 50% complete as to the 6,000 units in process on January 31. During
the month of January, 12,000 units were transferred to Department B. An analysis of the costs
relating to Work in Process is as follows:
Work in process, 1/1: Materials, P12,000; Conversion costs, P25,000
Costs added during the month: Materials, P79,800; Conversion costs, P125,000
Using FIFO, the cost of the 12,000 units transferred to Department B is:
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Transcribed Image Text:Johnson Company adds materials, 50% at the start of the process and 50% at the end of the process in Department A. Conversion costs were 70% complete as to the 8,000 units in process on January 1 and 50% complete as to the 6,000 units in process on January 31. During the month of January, 12,000 units were transferred to Department B. An analysis of the costs relating to Work in Process is as follows: Work in process, 1/1: Materials, P12,000; Conversion costs, P25,000 Costs added during the month: Materials, P79,800; Conversion costs, P125,000 Using FIFO, the cost of the 12,000 units transferred to Department B is:
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