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ABC Company manufactures a product in two departments: A and B. Owing to rigid quality of control measures, an avoidable unit loss occurs in Department

ABC Company manufactures a product in two departments: A and B. Owing to rigid quality of control measures, an avoidable unit loss occurs in Department B Production data for the month of May 2021 follows:

Units: In process, beginning 20,000 2/5 completed

Received from Dept. A 30,000

Finished & transferred ?

Finished & on hand 5,000

In process, end. 10,000 1/4 completed

Lost units 2,000

Costs: In process, beginning 60,000

Received from Dept. A 105,000

Cost added:

Materials 28,875

Labor 26,960

Overhead 17,290

Required: Prepare a cost of production report assuming lost units are discovered at the start of the process. Please use FIFO Method.

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