Mordan Company produces toy plastic boats which require processing in three departments. During May, 162,000 units were

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Question:

Mordan Company produces toy plastic boats which require processing in three departments. During May, 162,000 units were completed in Department 1 at a total cost of Rs. 300,000 and were transferred to the next department. Of these units, Department 2 completed.

Work in process inventory of Department 2 was Rs. 39,000 units,1/3 completed as to labor and factory overhead. Spoilage in Department 2, 4. normal amount, occurs at the end of processing. Department 2's labor cost for May was Rs. 48,000 and applied factory overhead Rs. 26,000.

Required:

Prepare a cost of production report for the department 2.