Cost of production summary, three departments, change in unit cost from prior department,…

Cost of production summary, three departments, change in unit cost from prior department,…

Cost of production summary, three departments, change in unit cost from prior department, departmental cost work sheet, journal entries, manufacturing
statement

Taguchi manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company’s books and from
the production reports submitted by the department heads:

Production Report	Mixing	Blending	Bottling
Units in Process, beginning of period	2500	1500	3000
Started in process during month	12500	–	–
Received from prior department	–	13000	10000
Finished and transferred	13000	10000	11000
Finished and on hand	–	500	–
Units in Process, end of period	2000	4000	2000
Stage of completion	1/4	4/5	½

Production Costs

Works in process, beginning of period

Works in process, beginning of period

Cost in Mixing		3075	6150
Materials	1470
Labor	650
Factory Overhead	565
Cost in Blending			3660
Materials		240
Labor		905
Factory Oberhead		750
Cost in Bottling
Materials			900
Labor			3100
Factory Overhead			3080

Costs incurred during the month
Materials	15000	2500	1500
Labor	4750	8000	6500
Factory Overhead	5240	6100	7000
Total	27675	21570	31890

Required:

1. Prepare cost of production summaries for the Mixing, Blending, and Bottling departments

2. Prepare a departmental cost work sheet

3. Draft the journal entries required to record the month’s operations

4. Prepare a statement of cost of goods manufactures for December.

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