TOPIC: PROCESS COSTING-LOST UNITS

P11-2 San Francisco Company manufacturers a product in two departments: A and B. Owing to rigid quality of control measures, an avoidable unit loss occurs in Department B. Production data for the month of May 2015 follows: Units: In process, beginning 20,000 2/5 completed Received from Dept. Amolto 30,000 Finished & transferred) onu cobbon? Finished & on hand 5,000 In process, end. 10,000 1/4 completed Lost units 2,000 Costs: In process, beginning 60,000 Received from Dept. A 105,000 Cost added: Materials 28,875 Labor 26,960 Overhead 17,290 Required: Prepare a cost of production report under each of the following cases: a. Lost units are discovered at the start of the process. b. Lost units are discovered during the process. C. Lost units are discovered at the end of the process