COST OF PRODUCTION REPORT: TWO DEPARTMENTS The Acme Plastic Co. has two processing departments. All direct materials are added in Department 1 at the beginning of the process, Conversion costs are incurred evenly throughout both processes. Data for January 19XX are shown below: DEPARTMENT 1 DEPARTMENT 2 75,000 60,000 Units started in process Units transferred to next department Units transferred to finished goods inventory Ending units in process Costs added by department: Direct materials Direct labor Factory overhead (applied) 15,000 (60% complete) 55,000 5,000 (80% complete) $300,000 172,500 86,250 $162,250 81,125 No beginning work-in-process inventory exists. Required: Prepare a cost of production report for both departments