Taguchi Manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company's book and from the production reports submitted by the department heads:
Production Report &nbs p; Mixing Blending Bottling
Units in process, beginning of period &nbs p; 2,500 1,500 3,000
Started in process during the month 12,500
Received from prior department &nb sp; 13,000 10,000
Finished and transferred &nb sp; 13,000 10,000 11,000
Finished and on hand 500
Units in process, end of period 2,000 4,000 2,000
Stage of completion &n bsp; ¼ 4/5 ½
Production Costs
Work in process, beginning of period:
Cost in Mixing... &n bsp; $3,075 $6150
Materials... $1470
Labor... 650
Factory overhead... 565
Cost in Blending... 3,660
Materials... &n bsp; 240
Labor... &nb sp; 905
Factory overhead... & nbsp; 750
Cost in Bottling
Materials... &nbs p; 900
Labor... &n bsp; 3,100
Factory overhead... &n bsp; 3,080
Cost incurred during the month:
Materials... 15,000 2,500 1,500
Labor... 4,750 &nb sp; 8,000 6,500
Factory overhead... 5,240 & nbsp; 6,100 7,000
TOTAL... $27,675 $21,570 $31,890
Required:
1. Prepare Costs of production summaries for the mixing, blending, and Bottling departments.
2. Prepare a departmental cost work sheet.
3. Draft the journal entries required to record the month's operations.
4. Prepare a statement of cost of goods manufactured for December.
