XYZ, Inc. has two departments in its operation, Department ABC and DEF. The data for the month of September were as follows: Department ABC Department DEF Unit in beg. Inventory ABC (1/2 complete)...


XYZ, Inc. has two departments in its operation, Department ABC and DEF. The  data for the month of September were as follows:




































































































Department ABCDepartment DEF
Unit in beg. Inventory
     ABC (1/2 complete)4,000
     DEF (3/4 complete)400
Units started in process14,000
Units transferred to Department DEF18,000
Units transferred to warehouse17,000

Units in ending inventory:


     ABC (1/8 incomplete)2000
     DEF (1/4 incomplete)2,500
Costs in beginning inventory:
      Costs from preceding departmentRS 10,500
     materialsRS 15,1506,250
     labor13,3758,000
     factory overhead13,3758,000
Costs added during the current period:
     materials92,50053,000
     labor132,57574,100
     Overhead132,575111,150

Department 1: Materials are applied as follows; 20% materials at the start of the production; 25% materials upon reaching 50% completion; 15% materials upon reaching 60% completion; 30% materials at 85% stage of completion and the balance of materials at the end of production. Labor and overhead are applied uniformly throughout the production.


Department 2: Materials are all applied at the beginning of the production, while labor and overhead are applied evenly throughout the production.


Requirement: Prepare the cost of production reports for department ABC and DEF


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Jun 10, 2022
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