Reference no: EM132698181

Peter Senen produces a product through a continuous process in different departments. Each department has an independent cost accountant who is tasked with cumulating costs and the preparation of reports for the department assigned to him. You have been assigned as cost accountant for Department A.

Production data of Department A for the month of September, 2020 were as follows:

Work in Process, Sept. 1 14,000 kg.
Percentage of completion 70%
Started in process 70,000 kg.
Work in process, sept 30 12,000 kg
Percentage of completion 60%
Lost units (normal) at the end of the process 2,000 kg.

In this department, cost are applied as follows:

Materials- Added at start of the process
Conversion Costs- evenly distributed

Department costs incurred in September, were:

Materials P56,000
Labor 17,350
Overhead 13,880
Work in process, September 8,000

Problem 1: What is the adjustment for normal lost units during the month?

Group of answer choices

a. P.0368

c. P1.04

b. P1.17

d. P.0357