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Jordan pharmaceutical company produces syrup. Ingredient A after processing in department 1 is transferred to department 2 where it mixed with half quality of
Jordan pharmaceutical company produces syrup. Ingredient A after processing in department 1 is transferred to department 2 where it mixed with half quality of ingredient b, resulting 50% increase in number of units being processed. The cost unit is a bottle of 450ml. During October, 600 units were received by department 2 and mixed with 300 units of ingredient B. On account of normal spoilage only 825 units were obtained. Following further information is available: Cost from preceding department.... Material Cost.... Labor Cost..... ..$6,300 ..$2,720 $1,700 50 units remaining in process at the month had been charged with all material but only 50% converted. Overhead.... ..$6,650 Required: Cost of Production Report based on the assumption that there were no units in process at the start of the month
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