The Xcell Health Care Company uses process costing system. The costs incurred in department 2 during the
Question:
The Xcell Health Care Company uses process costing system. The costs incurred in department 2 during the month of March are given below:
Cost from preceding department $10,000
Cost added by department during March:
Materials $10,908
Labor $3,888
Manufacturing overhead $2,052 $16,848
The quantity schedule of department 2 has provided the following information:
• Units received from department 1: 2,500 units
• Units transferred to department 3: 2,000 units
• Units still in process on March 31: 500 units
The stages of completion of units in process with respect to cost incurred is given below:
• 50% of the units were 40% complete
• 20% of the units were 30% complete
• 30% of the units were 20% complete
There were no work in process inventories on March 1. There was no normal or abnormal spoilage in Department 2 during march
Required:
Prepare a cost of production report for Department 2 of Xcell Health Care Company?
Expert Answer:
