Tiny Computers Ltd began producing netbooks on 1 July 2025. A unit of production passes through two processes — manufacturing and finishing. Production data for the month of July are presented below.

Required Prepare a cost of production report for July for each department, showing the unit cost on completed units for each process assuming that materials are added at the beginning of the process, and conversion costs are incurred continuously. The company uses the average cost method.

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Units started in process during July Units received from previous process during July Manufacturing 98 000 Total Costs of production Materials Direct labour Factory overhead Units completed in July and transferred out Units in process, all materials added 31 July 1/2 complete for labour and overhead 1/4 complete for labour and overhead 98 000 Finishing 82 000 82 000 $7 840 000 450 000 5400 000 82 000 16000 387 500 4 030 000 76000 6000