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COST ACCOUNTING FINAL TEST 1. Cost of Production Report; First Department, Average Cost. Exxon Manufacture Company produces a product in two manufacturing departments, Forming and

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COST ACCOUNTING FINAL TEST 1. Cost of Production Report; First Department, Average Cost. Exxon Manufacture Company produces a product in two manufacturing departments, Forming and Finishing. The product is formed out of plastic in the Forming Department and then transferred to the Finishing Department where parts are added to the formed plastic unit. Because only one product is manufactured by the company, a process cost system is used with an average cost flow assumption. Data related to November operation in the Forming Department are: Beginning Inventory Added This Period Costs charged to the department: Materials $4,120 $39.980 Direct Labor 522 12,638 Factory Overhead 18,779 961 During the period, 9,200 units were transferred from the Forming Department to the Finishing Department. The Forming Department had 1,000 units still in process at the end of October, they were 100% complete as to materials and 40% complete as to conversion cost. The Forming Department had 800 units still in process at the end of November, they were 75% complete as to materials and 25% complete as to conversion cost. REQUIRED: Prepare a November Cost of Production Report for the Forming Department 2. Cost of Production Report; Second Department; Average Cost Coco Company manufactures a product in three departments. The product is cut out of sheet metal in the Cutting Department, then transferred to the Forming Department where it is bent to shape and certain parts purchased from outside vendors are added to the unit. The product is finally transferred to the Painting Department where it is primed painted, and packaged. Because only one product is manufactured by the company, a process cost system is used. The company uses the average cost flow assumption to account for its work in process inventories. Data related to September operations in the Forming Department are: Units in beginning inventory 1,400 Units received from the Cutting Department this period 4,600 Units transferred to Painting Department this period 5,000 Units in ending inventory (60% materials, 30% labor and overhead) 1,000 Beginning Inventory Added this period Costs charged to the department: Costs from the preceding department Materials Direct labor Factory Overhead $21,120 5,880 2,614 5,228 $68,280 20,440 17,526 35,052 REQUIRED: Prepare a September Cost of Production Report for the Forming Department

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