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Question - ABC Company manufactures a specialized product. Department 2, adds new material to the units received from Department 1 at the end of process. A normal loss occurs early in processing. Production and cost data for Department 2 for the month of September are as follows: Production record (in units): In process, September 1-75% complete for processing cost 4,000 Received from Department 1 20,000 Completed and transferred to finished goods 16,000 Lost in processing (normal) 2,000 In process, September 30-2/3 complete for process cost 6,000 Cost Record: Work in process inventory, September 1: Preceding department cost $620 Processing cost 2,000 $2,620 Cost from preceding department in September 1,800 Material cost for September 4,800 Processing cost for September 10,200.
Required - Determine the following for Department 2 under weighted average the method of costing and (1) unit costs for each cost component, (2) cost of production transferred to finished goods, (3) cost of work in process inventory of September 30.
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