Lexington 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 1,500. 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 May.

Transcribed Image Text:

$25,000 10,800 8,100 Dept A Dept. B S 7,500 10,140 7,215 Materials . . . . Labor Production Summary Started in process.. . Added to units in process Units Dept. A Dept. B 10,000 8,500 1,500 1/3 8,500 1,500 9,500 500 1/2 Finished and transferred Units in process, end of month.