Preparing a cost of production report when there are lost units. The Chang Company uses a process cost system. On March 1, 19X1, the company had 500 units in production in the Assembly Department (the second department). All materials had been added to these units, but production was only one-half complete. Costs applicable to the beginning work in process inventory follow:

Costs in Prior Department $10,400 Materials 7,000 Labor 3,000 Overhead 6,000 During the month of March, an additional 10,250 units were transferred into the Assembly Department with prior department costs of $196,400. Additional costs were incurred in the Assembly Department as follows:
Materials $152,800 Labor 117,048 Overhead VIZ SM A total of 9,600 units were transferred out to finished goods. The ending work in process inventory consisted of 400 units, to which all materials had been added, but only 75 percent of the processing had been completed. The other units were lost at the start of production in this department.
Instructions 1. Prepare the equivalent production computations for the Assembly Department for March 19X1.
2. Prepare the cost of production report for the Assembly Department for March 19X1, assuming that the company uses the average cost method to account for beginning work in process inventories. Show a separate adjustment for lost units.