Preparing a cost of production report when there are increased units. The DeCarlo Company uses a process cost accounting system and the average cost method. The data given below relate to the Baking Department for August 19X3. 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 $12,000 Costs in Current Department Materials 2,600 Labor 1,700 Overhead 800 Current Department Costs-August Materials 82,775 Labor 49,500 Overhead 22,300 Transferred In From Prior Department-Current Month 64,150 Quantities. Beginning Work in Process Transferred In From Prior Department 100 1,900 Transferred Out to Next Department Ending Work in Process Stage of Completion of Work in Process Beginning Materials, Labor, and Overhead Ending Materials, Labor, and Overhead 1,800 350 60% 50%