P5-6 Harmon Corporation uses a process
cost system. The records for the month of May show the following
information
P5-6 Cost of
production summary, two departments; beginning
inventory.
P5-6 Harmon Corporation uses a process
cost system. The records for the month of May show the following
information:
Production
Report Cutting
Grinding
Units
in process, May 1 5,000 10,000
Started
during the month 20,000
-
Received
from prior department -
15,000
Finished
and transferred 15,000
10,000
Finished
and on hand 5,000 -
Units
in process, May 31 5,000
15,000
Stage
of completion 1/5
1/3
Production
Costs
Costs
in Cutting
50,000
Materials
5,000
Labor 6,450
Factory
overhead 3,550
Costs
in
Grinding
Materials
5,000Labor 5,500
Factory overhead 3,500
Costs incurred during the month
Materials 37,000 40,000
Labor 45,000 44,000
Factory overhead 50,000 37,000
Total 147,000 185,000
Prepare a cost of production
summary for each department.
SOLUTION
PREVIEW
Problem
5-6
|
Harmon
Corporation
Cost
of Production Summary -- Cutting
For
the Month Ended May 31, 20xx
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Cost of
work in process, May 1:
|
|
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Materials
|
$
5,000
|
|
|
Labor
|
6,450
|
|
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Factory overhead
|
3,550
|
$
15,000
|
|
|
|
|
|
Cost of
production for month:
|
|
|
|
Materials
|
$
37,000
|
|
