Reference no: EM132791182

Department B of Ethel Chemicals, Inc. suffers an average evaporation loss of 16%. The production data for the month of May 2019 showed the following:

In process, may 1 (1/4 completed) 5,760 units

Received from prior department 20,000 units

In process, May 31 (60% completed) 1,808 units

The production costs data were as follows:

Cost received from prior department P25,000

Unit cost in Department B for May

Materials P0.40

Labor 0.30

Overhead 0.10

The total costs of completed and transferred to finished goods stockroom for the month amounted to P40, 000.

Problem 1: Assuming that 500 units were lost in Department B, having 10,000 units in process at the beginning and 15,000 current units, the remaining good units which will participate in the cost of normal lost units encountered at the start of the process, shall be

Option 1: 9, 500

Option 2: 24,500

Option 3: 14,500

Option 4: none of the given choices