Canoli Cola Company produces a soft drink in three departments, Syrup, Carbonation, and Bottling. Syrup, which gives the drink its flavor, is produced in the first department. The syrup is then transferred to the second department, where carbonated water is added to give the drink its fizz. After carbonated water has been added, the liquid drink is bottled. A process cost system with an average cost flow assumption is used to account for work in process inventories. Data related to operations in the Carbonation Department during October are:
Units in beginning inventory .................................................... 1,000
Units received from the Syrup Department this period ..................... 2,000
Units added to process in the Carbonation Department this period ........ 6,000
Units transferred to Bottling Department this period ....................... 7,800
Units in ending inventory (100% materials, 25% labor and overhead) .... 1,200

Required:
Prepare a cost of production report for the Carbonation Department.

Transcribed Image Text:

Beginning Added Inventory This Period Costs charged to the department: $1,120 140 65 120 $9,680 1,210 1,960 3,120 Costs from the preceding department.... Materials Direct labor.. Factory overhead.