SCENARIO: FIFO: NORMAL LOST UNITS - UNEVEN APPLICATION OF COST

Problem III: Prepare Cost of Production Reports for all the departments. The Knuckles Manufacturing Co. manufactures a product in three successive departments - Mixing Department, Refining Depart Finishing Department. Normal lost units coming from those placed in process during the period or those received from preceding occur in all three departments during processing. Production data for the month of March follow: Mixing Department Refining Department Finishing Depa In process, March 1 (all materials, 1/2 labor and overhead) 4,000 (1/3 labor and overhead) 3,000 (1/4 labor and overhead) Transferred to next department 38,000 36,000 Completed and on hand 1,000 In process, March 31 (all materials, 2/3 labor and overhead) 3.000 (1/2 labor and overhead) 4,000 (1/3 labor and overhead) Units lost in process 2.000 1.000 Cost Data: 6,512 Work in process, September 1 Cost added: Materials 4,482 19,760 24,180 23,400 Labor 34.040 Overhead 29,970 Problem III: Prepare Cost of Production Reports for all the departments. The Knuckles Manufacturing Co. manufactures a product in three successive departments - Mixing Department, Refining Depart Finishing Department. Normal lost units coming from those placed in process during the period or those received from preceding occur in all three departments during processing. Production data for the month of March follow: Mixing Department Refining Department Finishing Depa In process, March 1 (all materials, 1/2 labor and overhead) 4,000 (1/3 labor and overhead) 3,000 (1/4 labor and overhead) Transferred to next department 38,000 36,000 Completed and on hand 1,000 In process, March 31 (all materials, 2/3 labor and overhead) 3.000 (1/2 labor and overhead) 4,000 (1/3 labor and overhead) Units lost in process 2.000 1.000 Cost Data: 6,512 Work in process, September 1 Cost added: Materials 4,482 19,760 24,180 23,400 Labor 34.040 Overhead 29,970