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Taguchi manufacturing Co. uses the process cost system

Price: $3.50


P5-9 Cost of production summary, three departments, change in unit cost from prior department, departmental cost work sheet, journal entries, manufacturing statement
Taguchi manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company’s books and from the production reports submitted by the department heads:

Production Report Mixing Blending Bottling
Units in Process, beginning of period 2500 1500 3000
Started in process during month 12500 - -
Received from prior department - 13000 10000
Finished and transferred 13000 10000 11000
Finished and on hand - 500 -
Units in Process, end of period 2000 4000 2000
Stage of completion 1/4 4/5 ½

Production Costs
Works in process, beginning of period
Cost in Mixing 3075 6150
Materials 1470
Labor 650
Factory Overhead 565
Cost in Blending 3660
Materials 240
Labor 905
Factory Oberhead 750

Cost in Bottling
Materials 900
Labor 3100
Factory Overhead 3080


Costs incurred during the month
Materials 15000 2500 1500
Labor 4750 8000 6500
Factory Overhead 5240 6100 7000
Total 27675 21570 31890

Required:
1. Prepare cost 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 stamen of cost of goods manufactures for December

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