Weighted Average, Two Departments (CPA, adapted) The Mantis Manufacturing Company manufactures a single product that passes through two departments: extruding and finishing-packing. The product is shipped at the end of the day on which it is packed. The production in the extruding and finishing-packing departments does not increase the number of units started.

The cost and production data for the month of January are as follows:

EXTRUDING FINISHING-PACKING COST DATA DEPARTMENT DEPARTMENT Work in process, January 1:

Cost from preceding department — $60,200 Materials $ 5,900 —

Labor 1,900 1,500 Overhead 1,400 2,000 Costs added during January:

Materials 20,100 4,400 Labor 10,700 7,720 Overhead 8,680 11,830 Percentage of completion of work in process:

January 1:

Materials 70% 0%

Labor 50 30 Overhead 50 30 January 31:

Materials 50 0 Labor 40 35 Overhead 40 35 JANUARY PRODUCTION STATISTICS Units in process, January 1 10,000 29,000 Units in process, January 31 8,000 6,000 Units started or received from preceding department 20,000 22,000 Units completed and transferred or shipped 22,000 44,000 In the extruding department, materials are added at various phases of the process. All lost units occur at the end of the process when the inspection operation takes place.

In the finishing-packing department, the materials added consist only of packing supplies. These materials are added at the midpoint of the process, when the packing operation begins. Cost studies have disclosed that one-half the labor and overhead costs apply to the finishing operation and one-half to the packing operation. All lost units occur at the end of the finishing operation when the product is inspected. All the work in process in this department at January | and 31 was in the finishing-operation phase of the manufacturing process.
(The company uses the weighted-average method in its accounting system.)
required — . Compute the units lost, if any, for each department during January.
Compute the equivalent units for the calculation of unit costs for each department in January.
Prepare a cost-of-production report for each department for January. The report should disclose the departmental total cost and cost per unit (for materials, labor, and overhead) of the units

(a) transferred to the finishingpacking department and

(b) shipped. Assume that January production and costs were normal. (Submit all supporting computations in good form.) lop5