The Marina Pools, Inc. operate three departments; namely Department 1, 2, and 3. In Department 1, the whole process covers ten days;

in Department 2, twelve days; and in Department 3 twenty days. In December 1992, Department 1 transferred to Department 2, 30,000 units at a total costs of 45,000. In Department 2 and Department 3, conversion cost are applied evenly, while material application are as follows:

Department 2: One-fifth of the material requirement is added at the start of the process; one-half when the process is one-third completed; and the balance, when the process is three-fourths completed.

Department 3: One-half of the material requirement is added at the start of the process, one-tenth when the process is one-fifth completed; and the remainder when the process is six-eights completed

Data for Department 2 and 3 for December 1992, follows:

Department 2 Department 3

Units in process, December 1 1,200 2,000

Number of days worked 5 6

Transferred out 28,080 25,580

Units in process, December 31 3,120 4,500

Number of days worked 7 11

In process, December 1 2,981 5,110

Current costs (December):

Materials 14,712 4,122

Labor 8,820 2,745.50

Overhead 2,940 1,372.75

Requirements: 

Prepare a cost production report for Department 2 and 3 for the month of December 1992 (Use FIFO and Weighted average method)

Answer rating: 100% (QA)

Cost Production Report for Department 2 and 3 December 1992 This report will be prepared using both FIFO and Weighted Average methods for Departments ... View the full answer