Computing equivalent production; preparing a cost of production report for two departments. Texas Industries uses a process cost accounting system. All materials in the first department (Forming) are added at the start of production. Raw materials put into production in the second department (Finishing)

are added in proportion to labor and manufacturing overhead. Data for the month of August 19X8 are given below and on page 304.

Instructions 1. Complete the equivalent production computations for each department.
2. Prepare separate cost of production reports for the two departments.

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Costs Beginning Work in Process Forming Finishing Department Department Costs in Prior Department -0- $26,178 Costs in Current Department Materials $ 6,480 980 Labor 2,610 730 Manufacturing Overhead 1,710 580 Current Department Costs-August Materials 92,520 10,135 Labor 76,650 8.090 Manufacturing Overhead 62,190 6,770