Two Departments; Two Months (W. Vatter) One of the products of this company is manufactured by passing it through two processes. The materials are started into production at the beginning of Process 1 and are passed directly from Process 1 to Process 2 without inventory between the processes.

Operating data for two months are given below:

January Process 1.

Process 2.

February Process 1.

Process 2.

X No initial work in process. During the month, 800 units were put into process and $8,000 was charged to this account. Operations during the month cost $2,800. Six hundred units were finished and passed on to Process 2. The work in process at January 31 was one-half finished.

No work in process on January 1. The work transferred from Process 1 was received and costs of $2,000 were incurred in operations to complete 300 units. At the end of the month, 300 units one-third finished remained in process.

Six hundred units of material were put into process at a total price of $6,000. Other costs incurred were $2,550. At the end of the month, there were 300 units still within the process, two-thirds finished.

Costs charged to operations in this process for February were $2,640.

On February 28, there were 300 units still within the process, two-thirds finished.

There is no spoilage or shrinkage in either of the processes; all units unfinished at the beginning of the month are completed within that month.

Calculations of production costs for each process for each month on a weightedaverage basis. l-01