Problem 01: The Sunshine manufacturing company uses a process cost system. The cost of process 2 forthe month of May 2016 is as follows:

Cost from preceding department Rs. 40,000

Cost added by the department

Material Rs. 21,816

Labor 7,776

FOH 4,104

The following information is also obtained from department quantity schedule:

Units received 5,000

Units transferred out 4,000

Units still in process 1,000

The degree of completion of the work in process was 32% complete as to material, labor, and factoryoverhead.

Required: Prepare the cost of production report for department 2 for May.