Comparison of Cost of Production Report of Two Departments

Cost of Production Report for Two Departments; No Inventory; Normal and Abnormal Lost Units in Department 2. The Miramar Company, Inc. has two production departments and maintains a process cost accounting system. 

The following is a summary of the costs for November: 

                            Materials      Labor   Applied Factory Overhead.
Department 1         $72,000   $ 8,400   $1 5,600
Department 2             3,267    54,292      26,255

Reports from the Production Control Department showed that 600 units were started in process, with no inventories at the beginning or end of the month. 

In Department 2, 10 units were spoiled, of which 4 units were spoiled because of defective materials. The good units, 590, were transferred to finished goods inventory. The company's practice is to distribute all normal spoilage costs among the units remaining in process and completed on the basis of actual number of units, regardless of stage of completion. Units spoiled because of defective materials (considered abnormal spoilage) are classified and costed as completed units; their costs are transferred to a lost unit expense account. 

Required: A cost of production report for Departments 1 and 2.