COST OF PRODUCTION REPORT: TWO DEPARTMENTS The October data for a manufacturing firm are shown below: DEPARTMENT 2 DEPARTMENT 1 25,000 Units started in process Units received from previous department Units transferred to finished goods inventory Units completed but not transferred Ending units in process 10,000 (80% direct materials, 65% conversion costs) 15,000 7,000 1,000 7,000 (75% conversion costs) Costs added by department: Direct materials Direct labor Factory overhead (applied) $12,650 13,545 5,160 $9,805 6,625 CHAPTER 6: PROCESS COSTI: NATURE AND CHARACTERISTICS 283 Required: a Prepare a separate cost of production report for Departments 1 and 2, b If finished goods inventory had a beginning balance of $25,000 and an ending balance of $13,300, what amount was charged to cost of goods sold