Units gained; cost of production summaries LO₃ Charlie Chemicals Inc., which uses the process cost system, has two departments^

and B. In both departments, all of the materials are put into production at the beginning of the process. The materials added in Dept. B increase the number of units being processed by 25%. Labor and factory overhead are incurred uniformly throughout the process in all departments.

A record of the factory operations for May follows:

Required:
Prepare a cost of production summary for each department for the month of May.

Transcribed Image Text:

Cost Summary Materials.. Labor.... Factory overhead 10,800 8,100 Dept. A $25,000 Dept. B $ 7,500 10,140 7,215 Production Summary Units Dept. A Dept. B Started in process.. 10,000 Received from prior department 8,500 Added to units in process.... 1,500 Finished and transferred..... 8,500 9,500 Units in process, end of month.. 1,500 500 Stage of completion 1/3 1/2