Question

3. Cost of Production Report: Brooks Inc. uses process costing. The costs for Department 2 for April were: $20,000 Cost from preceding department Cost added by department: Materials Labor Factory overhead (FOH) $21,816 7,776 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 as to costs originating in department 2 was: 50% of units were 40% complete; 20% were 30% complete; and the balance were 20% complete. Required: The cost of production report for Department 2 for April.

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Answer 1

Cost of Production Report for Department 2 for April:
	Phy Units	Deptt 1 cost	Materials	Labor	F OH	Total
Op. units in process	0
Started & Compl.	4000	4000	4000	4000	4000
Units transferred out	4000
Cl. Units still in Process:	1000
500 units (40%)		500	200	200	200
200 units (30%)		200	60	60	60
300 units (20%)		300	60	60	60
Cl. Units in Process		1000	320	320	320
Equivalent units		5000	4320	4320	4320
Cost incurred		20000	21816	7776	4104
Cost per Eq. unit		4	5.05	1.8	0.95
Cost of Transferred Out		16000	20200	7200	3800	47200
Cost of Units in Process		4000	1616	576	304	6496