The Slowburn Candle Company makes decorative candles. The company uses a process cost system which involves two processing departments. At the beginning of Department |, liquid wax is placed into process. In Department 2, liquid dyes are added to the units transferred in. The dyes are added at the beginning of the process and increase the number of units. The company uses fifo FIFO COSTING costing to account for beginning work-in-process inventory.

The company’s data for June is shown below: mk4

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Beginning units in process: 100% direct materials; 50% conversion costs 100% direct materials; 70% conversion costs Units started in process Department 1 Department 2 30,000 20,000 160,000 Units received from preceding department Units added to production Ending units in process: 150,000 5,000 100% direct materials: 20% conversion costs 100% direct materials: 80% conversion costs Costs of beginning work-in-process inventory 40,000 $21,300 35,000 $19,500 Costs added by department during the period: Direct materials 17,600 9,300 Direct labor 54,340 87,780 Factory overhead (applied) 27,170 43,120 Required: Prepare a cost of production report for Departments 1 and 2.