Cost of Production Report; increase in Quantity with Added Materials; Average Costing. Pop 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 depart¬ ment, where carbonated water is added to give the drink its fizz. After carbonated water has been added, the liquid drink is bottled for storage and transport to customers. 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 the month of October are: LO3 Units in beginninginventory.

Units received from the Syrup Department thisperiod.

Units added to process in the Carbonation Department thisperiod.

Units transferred to Bottling Department thisperiod.

Units in ending inventory (100% materials, 25% labor andoverhead).

Beginning Inventory Costs charged to the department:

Costs from the precedingdepartment. $1,120 Materials. 190 Directlabor. 60 Factoryoverhead. 120 Required: Prepare a cost of production report for the Carbonation Department.

1,000 2,000 6,000 7,800 1,200 Added This Period

$9,680 1,610 1,560 3,120