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.