Units gained; cost of production summaries
Logan Chemicals Inc., which uses the process cost system, has two departments: A and B. In both departments, all of the materials are put into production at the beginning of the process. The materials added in Department B increase the number of units being processed by 25%. Labor and factory overhead are incurred uniformly throughout the process in all departments.
A record of the factory operations for Many follows:
|
Cost Summary. |
Dept. A |
Dept. B |
|
Materials |
25000 |
7500 |
|
Labor |
10800 |
10140 |
|
Factory overhead |
8100 |
7215 |
Production summary
|
Started in process |
10000 |
|
|
Received from prior department |
8500 |
|
|
Added to units in process |
1500 |
|
|
Finished and transferred |
8500 |
9500 |
|
Units in process, end of month |
1500 |
500 |
|
Stage of completion |
1/3 |
½ |
Required:
Prepare a cost of production summary for each department for the month of May.