Accounting Delta Manufacturing Co uses Process costing. The following data is related to department 2. Details Units Amounts Unit received in process. Units completed and transferred to department 3 . Units in process (50% complete) Units lost in process Abnormal (80% complete) 12000 7000 4000 1000 $ Cost incurred by the department Material Labor F.O.H Cost from preceding department 30000 20000 10000 96000 Requirement: Prepare a cost of production report for department 2.

Accounting Delta Manufacturing Co uses Process costing. The following data is related to department 2. Details Units Amounts Unit received in process. Units completed and transferred to department 3 . Units in process (50% complete) Units lost in process Abnormal (80% complete) 12000 7000 4000 1000 $ Cost incurred by the department Material Labor F.O.H Cost from preceding department 30000 20000 10000 96000 Requirement: Prepare a cost of production report for department 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting

Delta Manufacturing Co uses Process costing. The following data is related to department 2.

Details	Units	Amounts
Unit received in process. Units completed and transferred to department 3 . Units in process (50% complete) Units lost in process Abnormal (80% complete)	12000 7000 4000 1000	$
Cost incurred by the department
Material Labor F.O.H Cost from preceding department		30000 20000 10000 96000

Requirement: Prepare a cost of production report for department 2.

Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.

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