Problem $2$: Cost of Production Report; Normal and Abnormal spoiled units.

The Texas Company uses process costing in accounting for its production department which uses two materials. Material X is added at the beginning of the process and is inspected at the $90\%$ stage; Material Y is then added to the good units. Normal spoilage units amount to $5\%$ of good output.

Company records contain the following information for January:

Started during the period.................................................................... $10000$ units

Material X$....................................................................................$ $ $13370$

Material Y$....................................................................................$ $ $4500$

Direct labor cost............................................................................. $ $37580$

Factory Overhead $..........................................................................$ $ $46975$

Transferred to next department............................................................. $7000$ units

Ending inventory $(95\%$ complete$),$ including Material Y$...............................\mathrm{.}2000$ units

Required: Cost of Production Report