Question:
Calculating unit costs; units lost in production
Seymour Brothers Products, Inc., manufactures a liquid product in one department. Due to the nature of the product and the process, units are regularly lost at the beginning of production. Materials and conversion costs are added evenly throughout the process. The following summaries were prepared for the month of January:
|
Production Summary
|
Units
|
|
Started in process
|
10,000
|
|
Finished and transferred to the stockroom
|
8,000
|
|
In process, end of the month
|
1,000
|
|
Stage of completion
|
1/2
|
|
Lost in process
|
1,000
|
|
Cost Summary
|
|
|
Materials
|
$132,000
|
|
Labor
|
33,000
|
|
Factory overhead
|
20,625
|
Calculate the unit cost for materials, labor, and factory overhead for January and show the costs of units transferred and in process.