Preparing a cost of production report when there are increased units. The Great Lakes Company uses a process cost accounting system and the average cost method. The data given below and on page 331 relate to the Treating Department for July 19X7. Because material is added in this department, the number of units is increased during production.

Instructions 1. Compute the equivalent units of production for each element.
2. Prepare the cost of production report for the department. (It is not necessary to show separately an adjustment for increased units.)

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Costs Beginning Work in Process Costs in Prior Department Costs in Current Department Materials Labor Overhead Current Department Costs-July Materials $ 12,184 1,248 944 768 31,392 Labor 23,536 Overhead 19,632 Transferred In From Prior Department-Current Month 316,660 Quantities Beginning Work in Process Transferred in From Prior Department Transferred Out to Next Department Ending Work in Process 150 1,225 1,475 100