Spectre Chemicals produces Canovic in a two department process. Information on the two

departments for March and April, 2014 are as follows:

March 2014:

Department 1: The Company had beginning inventory of 6,000 units, 40% completed with a

cost of $45,000. During the month, the department transferred in 22,000 units of the

direct materials with a cost of $10 per unit. Ending inventory was 7,000 units, 30%

completed. Direct labor is $310,500 and factory overhead is $103,500.

Department 2: The Company had beginning inventory of 5,000 units, 70% completed with a

cost of $80,000. During the month, direct labor was $175,000 and factory overhead was

$87,500. Ending inventory was 10,000 units, 50% completed.

April 2014:

Department 1: During the month, the department transferred in 20,000 units of the

direct materials with a cost of $11 per unit. Direct labor is $209,000 and factory overhead

is $104,500. Ending inventory is 10,000 units 60% completed.

Department 2: During the month, direct labor is $175,000 and factory overhead is $87,500.

The company had ending inventory of 5,000 units, 70% completed with a cost of $80,000.

Required:

Compute the Equivalent Units of Production, Material costs, and Conversion costs for each

department for March and April, 2014.

Complete the attached chart one for each department and each month

Prepare a cost of production report for March and April 2014.