Reference no: EM132721360

The cutting department is the first stage of ABC Company's production cycle. Beginning Work In Process (WIP) inventory for this department was 40% complete in conversion costs. Ending WIP was 25% complete. Information as to conversion costs in the Cutting Department for September is presented as follows:

                                                                                Units           Conversion Cost

WIP in September 1                                                     37,500             P31,650
Units started and cost incurred during September              202,500            P296,100
Units completed and transferred to next department during Sept. 150,000

Requirement:

Problme 1: Using a FIFO method, the total conversion cost of units transferred to finished goods from the units in process beginning.

Problme 2: Using a weighted average method, The conversion Cost of the WIP in the cutting department at September 30