Cost of production summary, two departments; beginning inventory (similar to Self-Study...

Cost of production summary, two departments; beginning inventory (similar to Self-Study Problem 2)

Reynolds Inc. uses a process cost system. The records for May show the following information:

Required:

Prepare a cost of production summary for each department. (Hint: When preparing the Grinding production summary, refer to the Cutting production summary for the costs transferred in during the month.)

Reference:

Cost of Production, Two Departments; Beginning Inventory

Carson City Chemicals Inc.

Carson City Chemicals Inc., which manufactures products on a continuous basis, had 800 units in process in Dept. 1, one-half completed, at the beginning of May. The costs in April for processing these units were as follows: materials, $1,200; labor, $900; and factory overhead, $1,000. During May, Dept. 1 finished and transferred 10,000 units to Dept. 2 and had 400 units in process at the end of May, one-half completed.

Dept. 2 had 200 units in process at the beginning of the month, one-half completed. April costs for these units were as follows: cost transferred from Dept. 1, $1,550; materials, $200; labor, $175; and factory overhead, $225. During May, Dept. 2 completed 9,000 units and had 1,200 units in process at the end of the period, two-thirds completed.

Production costs incurred by the two departments during May were as follows:

Required:

Prepare a cost of production summary for each department.