Preparing a cost of production report when there are lost units. The Brooks Company uses a process cost accounting system. On November I, 19X3, the firm had 900 units in production in the Forming Department, the second of three producing departments. All materials had been added to this beginning inventory, but labor and overhead were only 60 percent complete. Costs applicable to the beginning work in process inventory follow:

Costs in prior department $18,152 Materials 4261 Labor 6,330 Overhead 2,910 During the month of November, an additional 12,500 units were transferred into the department with total prior department costs of $194,352. Also during November, additional costs were incurred in the department as follows:

Materials $59,570 Labor 18,126 Overhead 52,790 A total of 12,900 units were transferred out to the third department during the month, 400 units were still in production at the end of the month, and 100 units were lost in production. All materials had been added to the ending work in process inventory, but labor and overhead were only 80 percent complete. Assume that the company uses the FIFO method of costing.
Instructions 1. Complete the equivalent production computations.
2. Prepare a cost of production report for the Forming Department. Assume that the loss of units occurs at the beginning of production in the department and that all lost units came from the work transferred into the department during the month of November 19X3.