Cost of Production Report for Atlanta Manufacturing

Cost of Production Report for Atlanta Manufacturing Using Average Costing Method; Units Lost at End of a Process. Ward, Inc. manufactures a single product that passes through two departments: Extruding and Finishing-Packing. The product is shipped at the end of the day in which it is packed. The production in the Extruding and Finishing-Packing Departments does not increase the number of units started. The cost and production data for the month of October are as follows:
                                                                                            Finishing-
                                                                        Extruding       Packing
Production Data                                             Department       Department
October production statistics:
Units in process, 10/1                                         10,000             29,000
Units in process, 10/31                                         8,000             6,000
Started or received from preceding department.     20,000           22,000
Units completed and transferred or shipped           22,000           44,000

                                                                10/1    10/31    10/1    10/31
% of completion of work in process:
Materials                                                    70%    50%      0%      0%
Labor                                                         50       40        30       35
Factory overhead                                        50       40        30       35

Cost Data
Work in process, October 1
Cost from preceding department                          $60,200
Materials                                     $ 5,900
Labor                                            1,900               1,500
Factory overhead                            1,400               2,000
Costs added during October:
Materials                                      20,100               4,400
Labor                                           10,700              7,720
Factory overhead                            8,680             11,830

In the Extruding Department materials are added at various stages throughout the process. In the Finishing-Packing Department the materials added consist only of packing supplies. These materials are added at the midpoint of the process when packing operation begins. Cost studies have disclosed that one half of the labor and overhead costs apply to the finishing operation and one half to the packing operation. All lost units occur at the end of the finishing operation when the product is inspected. All of the work in process in this department at October 1 and 31 was in the finishing operation stage of the manufacturing process. The company uses the average costing method.

Required: (1) Units lost, if any, for each department during October.
(2) The equivalent production for the calculation of unit costs for each department for October.

(3) A cost of production report for both departments for October. The report should disclose the departmental total cost and cost per unit (for materials, labor, and overhead) of the units (a) transferred to the Finishing-Packing Department and (b) shipped. Carry unit costs to three decimal places.