Reynolds Inc. uses a process cost system. The records for May show the following information: Production Report Units in process, May 1........ Cutting 5,000 Grinding 10,000 Started during the month... 20,000 Received from prior department... 15,000 Finished and transferred... 15,000 10,000 Finished and on hand.... 5,000 Units in process, May 31.. 5,000 15,000 Stage of completion.... 1/5 1/3 Production Costs Work in process, May 1: Costs transferred in from Cutting: $ 50,000 Materials........ $ 5,000 5,000 Labor....... 6,450 5,500 Factory overhead. 3,550 3,500 Costs incurred during the month: Materials .. 37,000 40,000 Labor...... 45,000 44,000 Factory overhead 50,000 37,000 $147,000 $185,000 Total...... Required Required: Prepare a cost of production summary for each department. (Hint: When preparing the Grinding production summary, refer to the Cutting production summary for the costs transferred in during the month.) Reference: Cost of Production, Two Departments; Beginning Inventory Carson City Chemicals Inc. Carson City Chemicals Inc., which manufactures products on a continuous basis, had 800 units in process in Dept. 1, one- half completed, at the beginning of May. The costs in April for processing these units were as follows: materials, $1,200; labor, $900; and factory overhead, $1,000. During May, Dept. 1 finished and transferred 10,000 units to Dept. 2 and had 400 units in process at the end of May, one-half completed. Dept. 2 had 200 units in process at the beginning of the month, one-half completed. April costs for these units were as follows: cost transferred from Dept. 1, $1,550; materials, $200; labor, $175; and factory overhead, $225. During May, Dept. 2 completed 9,000 units and had 1,200 units in process at the end of the period, two-thirds completed. Production costs incurred by the two departments during May were as follows: Materials. Labor..... Factory overhead...... Required: Prepare a cost of production summary for each department. Dept. 1 $29,400 Dept. 2 $19,400 22,050 16,975 24,500 21,825