Process costing system related problem

Question

Task: Process costing system

Outback Gifts makes unique western gifts that are sold at souvenir shops. One of the company's more popular products is a ceramic eagle that is produced in a mass production process that entails two manufacturing stages. In the first production stage ceramic glass is heated and molded into the shape of the eagle by the Finishing Department. The company has just hired a new  accountant who will be responsible for preparing the Cost of Production Report for June 2008. The accountant is given the following information                                
Departamental Cost Information for June       

					Compression		Finishing
Costs in beginning inventory					$             9,000		$                 10,400
Cost added during June:
	Materials				63,000		16,380
	Labor				20,000		11,200
	Overhead				90,000		42,000

Departamental product Information for June  

					Compression		Finishing
Units in beginning inventory					6,000		1,800
Units started					26,000		24,000
Units in ending inventory					8,000	(50% complete)	4,800	(80% complete)

                     
Required

Q1. Prepare a Cost of Production Report for the Compression  Department for June.

Q2. Prepare a Cost of production Report for the Finishing Department for June.

Q3. If 20,000 units are sold in June for $210,000 determine the company's gross margin for June.

Cost Of Production Report						Actual		Equivalent Units
Determination of Equivalent Units
Beginning Inventory
Units added to production
Total
Transferred to finished goods
Ending Inventory
Total
Determination of Cost per Unit
Cost accumulation
Beginning Inventory
Product costs added
Total Product cost
Divide by Equivalent Units
Cost per equivalent Unit
Cost Allocation
Transferred out
Ending WIP inventory
Total