DEPARTMENT ADEPARTMENT B 

 

UNITS

Started in process150, 000

Received from department A.95,000

Transferred to department B.95,000

Transferred to finished goods inventory.63,000

Ending Units in Process:

Department A (direct material 100% complete; direct

Labor 45% & factory overhead 40% complete).55,000

Department B (direct labor 25% and Factory overhead 55%complete)32,000

Costs:

Direct Material Cost 76,500

Direct labor cost 114,960

Factory overhead (Applied) 40,950

REQUIRED: COST OF PRODUCTION REPORT OF BOTH DEPARTMENTS.

Question 2).A company's Department 2 costs for June were:

Cost from Department 116,320

Cost added in Department 2:

Materials43,415

Labor56,100

Factory overhead58,575

The quantity schedule shows 12,000 units were received during the month from Department 1; 7,000 units were transferred to finished goods; and 5,000 units in process at the end of June were 50% completed as to materials cost and 25% completed as to conversion cost.

REQUIRED: PREPARE COST OF PRODUCTION REPORT.