Aero Aluminium Inc. uses a process cost system. the records for may show the following information
Production Report Rolling Converting units in progress, May 1 5000. 10000
Started during the month. 20000 Received from prior department. 15000 Finished and transferred. 15000. 10000 Finished and on hand. 5000 Unit in process, May 31. 5000. 15000 Stage of completion 1/5 1/3 Production Cost:
Work in process, May 31. Cost transferred in from rolling 50000 materials 5000. 5000 labour 6450 5500 factory overheads 3550 3500
Cost incurred during the month:
Materials 37000. 40000 Labour 45000. 44000 Factory overheads 50000. 37000 Total 147000. 185000
Required:
Prepare a cost of production summary for each department. Hint: when preparing the converting production summary, refer to the rolling production summary for the costs transferred in during the month.