The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A,
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Question:
The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B, and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials used. Production data for the month follow:
Department A | Department B | Department C | ||||
In process, September 1 | 5,000 | 2/5 | 8,000 | 3/8 | 10,000 | 1/2 |
Transferred to next department | 35,000 | 34,000 | 34,000 | |||
Abnormal lost units discovered: | ||||||
(1) at start of processing | 2,000 | - | - | |||
(2) when 1/2 processed | - | 4,000 | - | |||
(3) at end of processing | - | - | 7,000 | |||
In process, September 30 | 3,000 | 1/3 | 5,000 | 3/5 | 3,000 | 1/3 |
Cost Data: | ||||||
Work in process, September 1 | 6,000 | 36,000 | 98,400 | |||
Cost added: Materials | 17,000 | 72,000 | 92,500 | |||
Labor | 59,500 | 36,000 | 55,500 | |||
Overhead | 25,500 | 36,000 | 37,000 | |||
prepare cost of production report in all departments
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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