Following data is extracted for the book of Durban Manufacturer. DEPARTMENT A DEPARTMENT B UNITS Started in
Question:
Following data is extracted for the book of Durban Manufacturer.
DEPARTMENT A DEPARTMENT B
UNITS
Started in process 150, 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
Direct labor cost
Factory overhead (Applied)
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:
Materials 43,415
Labor 56,100
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% complete as to materials cost and 25% complete as to conversion cost.
REQUIRED: PREPARE COST OF PRODUCTION REPORT.