Cancun 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 Dept. 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 May follows:

Required:
Prepare a cost of production summary for each department for the month ofMay.

Cost Summary Materials Dept. A $25,000 10,800 8,100 Dept. B $ 7,500 10,140 7,215 .. Factory overhead .. Production Summary Units Dept. A 10,000 Dept. B Started in process Received from prior department.... Added to units in process.. . . Finished and transferred.. 8,500 1,500 9,500 500 1/2 8,500 1,500 1/3 Stage of completion...