Cost of Production Report with Average Method. The Shawnee Supply Company manufactures a single product on a continuous plan in three departments. On November 1 the work in process inventory in Department 2 was:
Cost in preceding department $ 1 3, 1 30
Materials — Department 2 None
Labor — Department 2 $ 500
Factory overhead — Department 2 $ 50
Units in process 5,000
Costs in Department 2 during November were:
Labor $14,200
Factory overhead $ 3,450
During November 70,000 units were received from Department 1 at a unit cost of $2,641. There were 68,000 units completed in Department 2, of which 60,000 were transferred to Department 3, and 8,000 were on hand in Department 2 at the end of the month. There were 4,000 units still in process, estimated to be one half complete as to labor and factory overhead. The balance was lost within the department, and its cost is to be absorbed by all the finished and unfinished production of the department.
Cost in preceding department $ 1 3, 1 30
Materials — Department 2 None
Labor — Department 2 $ 500
Factory overhead — Department 2 $ 50
Units in process 5,000
Costs in Department 2 during November were:
Labor $14,200
Factory overhead $ 3,450
During November 70,000 units were received from Department 1 at a unit cost of $2,641. There were 68,000 units completed in Department 2, of which 60,000 were transferred to Department 3, and 8,000 were on hand in Department 2 at the end of the month. There were 4,000 units still in process, estimated to be one half complete as to labor and factory overhead. The balance was lost within the department, and its cost is to be absorbed by all the finished and unfinished production of the department.
Required: A November cost of production report for Department 2, using the average costing method for opening work in process inventories.