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Juniper Company manufactures a single product in two departments, Cutting and Finishing. Units of product are started in the Cutting Department and then transferred to the Finishing Department, where they are completed. Units are inspected at the end of the production process in the Finishing Goods Inventory During July. 5.000 units were transferred from the Cutting Department to the Finishing Department and 3,800 were transferred from the Finishing Department to Finished Goods Inventory. At the end of July, the Finishing Department still had 800 units in process, 40% complete as to materials and 20% complete as to conversion costs.
Cost data related to July operations in the Finishing Department are:
Cost from preceding department P 60,000
Materials 22,600
Labor 17.440
Overhead 13,080
Problem 1: Assume loss are normal loss, Prepare the Production Report.
Problem 2: Assume loss are abnormal loss, Prepare the Production Report.
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