Jordan pharmaceutical company produces syrup. Ingredient A after processing in department 1 is transferred to department 2 where it mixed with half quality of ingredient b, resulting 50% increase in number of units being processed. The cost unit is a bottle of 450ml. During October, 600 units were received by department 2 and mixed with 300 units of ingredient B. On account of normal spoilage only 825 units were obtained. Following further information is available: Cost from preceding department……………………………………..$6,300 Material Cost………………………………………………………….$6,650 Labor Cost…………………………………………………………….$2,720 Overhead………………………………………………………………$1,700 50 units remaining in process at the month had been charged with all material but only 50% converted. Required: Cost of Production Report based on the assumption that there were no units in process at the start of the month.
Jordan pharmaceutical company produces syrup. Ingredient A after processing in department 1 is transferred to department 2 where it mixed with half quality of ingredient b, resulting 50% increase in number of units being processed. The cost unit is a bottle of 450ml. During October, 600 units were received by department 2 and mixed with 300 units of ingredient B. On account of normal spoilage only 825 units were obtained. Following further information is available: Cost from preceding department……………………………………..$6,300 Material Cost………………………………………………………….$6,650 Labor Cost…………………………………………………………….$2,720 Overhead………………………………………………………………$1,700 50 units remaining in process at the month had been charged with all material but only 50% converted. Required: Cost of Production Report based on the assumption that there were no units in process at the start of the month.
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Jordan pharmaceutical company produces syrup. Ingredient A after processing in department 1 is transferred to department 2 where it mixed with half quality of ingredient b, resulting 50% increase in number of units being processed. The cost unit is a bottle of 450ml.
During October, 600 units were received by department 2 and mixed with 300 units of ingredient B. On account of normal spoilage only 825 units were obtained. Following further information is available:
Cost from preceding department……………………………………..$6,300
Material Cost………………………………………………………….$6,650
Labor Cost…………………………………………………………….$2,720
50 units remaining in process at the month had been charged with all material but only 50% converted.
Required: Cost of Production Report based on the assumption that there were no units in process at the start of the month.
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