Preparing a cost of production report when there are lost units. The Northwestern Company makes small appliances. The first producing department is the Framing Department. The average cost method is used to price the beginning work in process inventory. The cost of lost units is absorbed by the remaining good units. The Work in Process—Framing Department account is shown below.

Instructions 1. Prepare the equivalent production computations for the Framing Department for March 19X5.

2. Prepare the cost of production report for the Framing Department for March 19X5. Carry the unit costs to three decimal places. (Do not show a separate entry for lost units.)

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DATE Work in Process-Framing Department 123 No. POST DR. EXPLANATION DEBIT CREDIT BALANCE REF. CR. 19 X5 Mar. 1 Balance 7,934 22 Dr. 31 Materials MR10 98,903 68 106.837 90 Dr. 31 Labor J10-26 21,092 32 127,930 22 Dr. 31 Overhead J10-27 63,276 96 191,207 18 Dr.