Cost of Production Report; Originating Department; Average Costing. Sonora Manufacturing Company produces a product in two manufacturing depatments, molding and Finishing. The product is molded out of plastic in the molding department and the transferred to the finishing department; where parts are added to the molded plastic unit. Since only one product is manufactured by the company; a process cost system is used with an average cost flow assumption.

Data related to augut operations in the Molding Department are:

Costs charged to the department:

Beggining Added

Inventory This

Period

Materials..................................................................... $4120 $44,880

Direct labor................................................................. 522 12,638

Factory Overhed........................................................ 961 18,779

During the period, 9200 units were transferred from the Molding Department to the Finishing Department. The Molding Department had 1,000 units still in process at the end of july(100% complete as to materials and 40% complete as to conversion cost) and 800 units still in process at the end of August(75% complete as to materials and 25%complete as to conversion cost).