Calculating unit costs; costs of units transferred and in process LO₃ A company manufactures a liquid product called Sparkle. The basic ingredients 3 are put into process in Dept. I. In Dept. 2, other materials are added that increase the number of units being processed by 50%. The factory has only two departments.

Transcribed Image Text:

Production Summary Started in process.. Units Dept. I Dept. 2 18.000 Received from prior department 14,000 Added to units in process. 7,000 Finished and transferred.... 14,000 15,000 In process, end of month 4.000 6,000 Stage of completion-materials, labor, and factory overhead. 1/4 1/2 Cost Summary Labor Materials.... Factory overhead $90,000 $36.000 30,000 13.500 15,000 4,500