Reference no: EM132958260

Problem - Normal and Abnormal Loss - Lenlen Corporation produces a product through a continuous process in two departments. Materials in this department are added at the beginning of the process. The production and cost data were taken from Department B during September 2020:

Production and data:

Received from Department A 80,000 units

Completed and transferred 60,000 units

In process, end (50% complete) 10,000 units

Lost 10,000 units

Cost data:

Received from Department A P 560,000

Materials 175,000

Labor 121,875

Overhead 243,750

Required - Prepare cost of production report under the following assumptions:

a. Lost units - normal, discovered at the beginning.

b. Lost units - normal, discovered at the end.

c. Lost units - abnormal, discovered when 60% completed.

d. Lost units - abnormal, discovered at the end. The estimated value of the spoiled units is P12.00 each.