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Prepare Cost of Production Reports for all the departments. Fifo, abnormal Lost units. The...

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Accounting

Prepare Cost of Production Reports for all the departments. Fifo, abnormal Lost units.

The Boy Manufacturing Co. manufactures a product which is processed in three successive departments - Department A, Department B, and Department C. In September, units were spoiled in all three departments at various stages of processing of the defective materials used. Production data for the month follow:

Department A Department B Department C

In process, September 1 5,000 2/5 8,000 3/8 10,000 1/2

Transferred to next department 35,000 34,000 34,000

Abnormal lost units discovered:

(1) at start of processing 2,000 - -

(2) when 1/2 processed - 4,000 -

(3) at end of processing - - 7,000

In process, September 30 3,000 1/3 5,000 3/5 3,000 1/3

Cost Data:

Work in process, September 1 6,000 36,000 98,400

Cost added: Materials 17,000 72,000 92,500

Labor 59,500 36,000 55,500

Overhead 25,500 36,000 37,000

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