PLEASE USE THE COST OF PRODUCTION REPORT FORM

Prepare a cost of production report for the Cutting Department of Borges Distributors

for May 2006, using the following data and assuming that all materials are added at the beginning of the production process:

Work in process, May 1, 8,000 units, 75% complete $70,400*

* Direct materials (8,000 x $5.20) $41,600

Conversion costs (8,000 x 75% x $4.80) 28,800

$70,400

Materials added during May from Weaving Dept., 215,000 units 1,128,750

Direct labor for May 402,040

Factory overhead for May 603,060

Goods finished during May (includes goods in process, May 1), 214,000 units --

Work in process, May 31^st, 9,000 units, 40% completed

Cost of Production Report

Equivalent Units

1. Units

Whole UnitsDMConversionUnits charged to production: Beginning Work in Process Received from materials Total units accounted for Units to be assigned costs Beginning Work in Process ( % completed) Started and completed this month Transferred to F.G or Dept Ending Work in Process ( % completed) Total Units to be assigned costs

1. Costs

1. Unit Cost:

Total costs for the month Total equivalent units Cost per equivalent unit

1. Costs charged to production

Beginning Work in Process Cost incurred in the month Total costs accounted for

1. Costs allocated to completed & partially completed

Inventory in Process, beginning of the month To complete inventory in process beginning Started & completed this month Transferred to Finished Goods or next Dept. Inventory in Process, end of the month Total costs assigned by the department