Mt. Palomar Manufacturing Co. uses a process cost system. Its manufacturing operation is carried on in two departments: Machining and Finishing. The Machining Department uses the weighted average cost method, and the Finishing Department uses the FIFO cost method. Materials are added in both departments at the beginning of operations, but the added materials do not increase the number of units being processed. Units are lost in the Machining Department throughout the production process, and inspection occurs at the end of the process. The lost units have no scrap value and are considered to be a normal loss.
Production statistics for July show the following data:

Required:
1. Prepare a cost of production summary for each department. (Round unit costs to three decimal places.)
2. Which department will have an easier time determining how its unit costs compare from month to month? Why?

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Machining Finishing Units in procoss, July 1 (all material, 40% of labor and overhead) . 20,000 Units in process, July 1 (all material, 80% of labor and overhead). . 40,000 140,000 Units completed and transferred . . . . . . . .. 100,000 100,000 Units completed and transferred to Units in process, July 31 (all materia Units in process, July 31 (all material, finished goods 60% of labor and overhead). 40% of labor and overhead) 100,000 40,000 . 40,000 20,000 Production Costs Work in process, July 1: Machining Finishing $110,000 60,000 40,000 240,000 Machining Finishing $40,000 24,000 8,000 Materials . . . Labor . Costs in Machining Department Production Costs Costs incurred during month: $280,000 180,000 60,000 $240,000 160,000 80,000 Materials Labor