Bozeman Hi-Tech Products manufactures a product that is accounted for under a process cost system in the Assembly and Finishing departments. Recently, the production super- intendent was reviewing the April cost of production reports for the two departments. His intuition suggested something was wrong with the reports. He asked the departmen- tal managers if they had reviewed the reports. Both indicated that they had. However, both managers acknowledged that the reports must be in error because they did not agree with the operating facts. One manager suggested the Accounting Department had screwed up again. 

You have been asked to review the departmental cost of production report for the Assembly Department and determine what adjustments should be made. You have the following information available to you for the Assembly Department:

Required:
Prepare a corrected cost of production report for the Assembly Department. Identify the
errors, if any, in the original cost of production report.

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Units: Beginning inventory..... 10,000 Units started... 20,000 Units completed and transferred 26,000 Ending inventory 4,000 Costs: Materials $22,000 Labor 8,000