Brooks Inc. uses process costing. The costs for Department 2 for April were:

Question

Cost from preceding department
$20,000
Cost added by department:
Materials
$21,816
Labor
7,776
Factory overhead (FOH)
4,104
33,696
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The following information was obtained from the department's quantity schedule:
Units received
5,000
Units transferred out
4,000
Units still in process
1,000
The degree of completion of the work in process as to costs originating in department 2 was: 50% of units were 40% complete; 20% were 30% complete; and the balance were 20% complete. Required: The cost of goods completed and transferred out from Department 2 for April. Determine cost of WIP ending in department 2.

Answer 1

Brooks Inc. uses process costing. The costs for Department 2 for April were:
Cost from preceding department

$20,000
Cost added by department:

Materials
$21,816

Labor
7,776

Factory overhead (FOH)
4,104
33,696

--------

The following information was obtained from the department's quantity schedule:

Units received
5,000

Units transferred out
4,000

Units still in process
1,000

The degree of completion of the work in process as to costs originating in department 2 was: 50% of units were 40% complete; 20% were 30% complete; and the balance were 20% complete.
Required: The cost of production report for Department 2 for April.