Cost of production summary, two departments; beginning inventory. Similar to self-

LO₇ study problem.

Irwin Corporation uses a process cost system. The records for the month of May show the following information:

Required:
Prepare a cost of production summary for each department.

Transcribed Image Text:

Production Report Cutting Grinding Units in process, May ..... 5,000 10,000 Started during the month... 20,000 Received from prior department 15,000 Finished and transferred. 15,000 10,000 Finished and on hand.. 5,000 Units in process, May 31. 5,000 15.000 Stage of completion. 1/5 1/3 Production Costs Work in process, May 1: Costs in Cutting. Materials.. Labor... Factory overhead Cost in Grinding: Materials Labor.... Factory overhead Costs incurred during the month: Materials.... Labor Factory overhead Total..... $ 50,000 $ 5,000 6,450 3.550 5,000 5,500 3,500 37,000 40,000 45,000 44,000 50,000 37,000 $147,000 $185.000