Cost of production summary three departments; change in unit cost from prior de-

LO₇ partment; departmental cost work sheet; journal entries; manufacturing statement ft

' San Marcos Manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company's books and from the production reports submitted by the department heads:

Required:
1. Prepare cost of production summaries for the Mixing, Blending, and Bottling departments.
2. Prepare a departmental cost work sheet.
3. Draft the journal entries required to record the month's operations.
4. Prepare a statement of cost of goods manufactured for December.

Transcribed Image Text:

Production Report Mixing Blending Bottling Units in process, beginning of period 2,500 1,500 3,000 Started in process during month 12,500 Received from prior department Finished and transferred... 13,000 10,000 13.000 10,000 11,000 Finished and on hand. 500 Units in process, end of period.. 2,000 4,000 2,000 Stage of completion... 1/4 4/5 1/2 Production Costs Work in process, beginning of period: Cost in Mixing... $ 3,075 $6,150 Materials Labor... Factory overhead. Cost in Blending Materials Labor... Factory overhead. Cost in Bottling Materials Labor.... Factory overhead. Costs incurred during month: Materials.... Labor Factory overhead Total... $ 1,470 650 565 3,660 240 905 750 900 3,100 3,080 15,000 2,500 1,500 4,750 8,000 6,500 5.240 6,100 7,000 $27,675 $21,570 $31,890