Cost of Production Report. For December the Production Control Department of Italian Chemical, Inc. reported these production data for Department 2 :
Transferred in from Department 1 55,000 liters
Transferred out to Department 3 39,500 liters
In process at end of December 10,500 liters (with 1/3 labor and factory overhead)
All materials were put into process in Department 1.
The Cost Department collected these figures for Department 2:
Unit cost for units transferred in from Department 1 $1 .80
Labor costs, in Department 2 $27,520
Factory overhead applied 1 5,480
Required: A cost of production report for Department 2 for December.
Cost of Production Report. Melograno, Inc. uses a process cost system. The costs of Department 2 for the month of April were:
Cost from preceding department $20,000
Cost added by department:
Materials $21,816
Labor 7,776
Factory overhead 4,104 $33,696
The following information was obtained from the department's 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: 50% of the units were 40% complete; 20% of the units were 30% complete; and the balance of the units were 20% complete.