Cost of production summary, two departments; beginning inventory.
Harmon Corporation uses a process cost system. The records for the month of May show the following information:
|
Production Report |
Cutting |
Grinding |
|
Units in process, May 1 |
5,000 |
10,000 |
|
Started during the month |
20,000 |
– |
|
Received from prior department |
– |
15,000 |
|
Finished and transferred |
15,000 |
10,000 |
|
Finished and on hand |
5,000 |
– |
|
Units in process, May 31 |
5,000 |
15,000 |
|
Stage of completion |
1/5 |
1/3 |
|
Production Costs |
||
|
Work in process, May 1: |
||
|
Costs in Cutting |
50,000 |
|
|
Materials |
5,000 |
|
|
Labor |
6,450 |
|
|
Factory overhead |
3,550 |
|
|
Costs in Grinding |
||
|
Materials |
5,000 |
|
|
Labor |
5,500 |
|
|
Factory overhead |
3,500 |
|
|
Costs incurred during the month |
||
|
Materials |
37,000 |
40,000 |
|
Labor |
45,000 |
44,000 |
|
Factory overhead |
50,000 |
37,000 |
|
Total |
147,000 |
185,000 |
Required:
Prepare a cost of production summary for each department.