The following is the condensed information from the records Deptt-2 of Shah steel Mills, Karachi for the month of December 2007.

9,000 received from Deptt-1with total cost of Rs.90,000

Cost incurred during December:

Direct Material 800,000

Labor 500,000

Factory overhead applied (90% of Direct Labor)

Company completed 6,000 units in December 2007 and transferred to the next department .Units in process at the end of the month are in the following stage of completion.

Material 70%

Conversion 30%

Required:

Prepare cost of production report for the month of December 2007.