XYZ, Inc. has two departments in its operation, Department ABC and DEF. The data for the month of September were as follows:
Units in ending inventory:
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
show the solution clearly for review purposes
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