To prepare a cost of production report
This is the question:
During February, the Assembly Dept. received 60,000 units from cutting Dept. at a unit cost $3.54. Cost added in the Assembly Dept. were: Materials $41,650, labor $101700, factory overhead $56,500, there was no beginning inventory. Of the 60,000 uits received, 50,000 were transferred out, 9000 units were in process at the end of the month (all materials,2/3 converted, the lost units were 1/2 complete as to materials and conversion cost. The entire loss is consider abnormal and is to be charged to factory overhead).
My attempt to solve this problem yielded a "total cost to be accounted for" of $259,850 and the "total cost accounted for" was $91,470.