Max Corporation manufactures chocolate flavored milk for infant using two departments,

Department A and Department B.

The first step in the Department A is to add Material X. The Material X is then processed. Labor
and Overhead cost are assumed to be incurred evenly throughout the process. At the end of the
processing in this department Material Y is added. Completed units are then transferred to the
Department B. The Department B will then process further the units received, and at 50% completion
Material Z is added.
Overhead is applied at 150% and 80% of Direct Labor Cost in Department A and Department B
respectively.
For the month of April, the following data were made available:
Department A
April 1, 2015 This Month April 30, 2015
Units 15,000 95,000 10,000
Material X P 37,500 P 247,000 ?
Material Y 385,000 ?
Labor Cost 15,000 316,875 ?
Stage of completion 1/3 25%
Department B
April 1, 2015 This Month April 30, 2015
Units 25,000 ? 18,000
Material Z 87,500 P 360,000 ?
Labor 30,000 223,440
Stage of completion 60% 80%
The April 1, 2015 Work in process in Department B were also charged with production costs from
Department A of P62,500 of Material X, P95,000 of Material Y, and P40,000 of Direct Labor cost.
Required: Prepare the Cost of production report for Department A and Department B using FIFO Inventory costing Method.