Question:
Lost units; cost of production summaries
Sinaloa Products Co. uses the process cost system. A record of the factory operations for the month of October follows:
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Production Summary
|
Units
|
|
Started in process
|
12,500
|
|
Finished and transferred to stockroom
|
9,500
|
|
In process, end of month, one-half completed as to materials, labor, and overhead
|
1,000
|
|
Cost Summary
|
|
|
Materials
|
$30,000
|
|
Labor
|
12,000
|
|
Factory overhead
|
18,000
|
Required:
Prepare a cost of production summary, assuming that the cost of lost units is absorbed by the good units completed.