Cost of Production Report

Problem 9 The EDSA Corporation manufactures a product in two departments. Materials are added in each department, increasing the number of units manufactured. A summary of the cost for the company's first month of operations (January) is as follows: Department1 Department 2 Materials 180,000 135,000 Labor 78,000 82,800 Factory Overhead 15,600 41,400 The production supervisor reports that 60,000 units were put into production in Department 1. Of this quantity, 15,000, a normal number, were lost in production; and 36,000 were completed and transferred to Department 2. For the balance in process at the end of the month, all materials had been added, but only one third of the labor and factory overhead had been applied. In Department 2, 9,000 units of materials were purchased outside and added to the units received from Department 1; 39,000 were completed and transferred to finished goods inventory. The remainder were in process at the end of the month, with all materials added, but only 40% complete for labor and factory overhead. Required: Cost of production report