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HayD Company has the data attached in the table below. Units in departments 1&2 are inspected when the production process reaches 70% of the conversion cost. Meanwhile, 90% of the material has been given to spoiled units. There is no salvage value for spoiled units. Spoiled units are accounted for in both departments' production cost reports. Spoilage fees are charged to Manufacturing Overhead.

Questions :

a. Prepare production cost reports for department 1: Assembly and department 2: Finishing using the FIFO method. Use two decimal places.

b. Prepare journal entries to record the use of materials, labor, overhead, finished goods, and spoilage in departments 1 and 2 assuming labor wages have not been paid and overheads still have to be paid.

c. Calculate the unit cost of the production.

Assembly Dep FinishingDep 4200 Units in beginning inventory:"" Assembly (70% materials, 50% labor, 40% overhead) Finishing (90% materials, 70% labor, 60% overhead) ??? ??? 21200 Units started in process in Assembly Department this period 20.200 Units transferred from Assembly to Finishing Department this period 19700 Units transferred from Finishing to Finished Goods this period UNITS SPOILED in process this period 500 Units in ending inventory: Assembly (90% materials, 80% labor, 70% overhead) ??? Finishing (100% materials, 80% labor, 100% overhead) 500 4200 Cost added during the current period: Materials 260000000 70000000 Labor 46000000 52000000 Overhead 90000000 70000000 372630103 Cost added preceding dep (TIC) Cost in beginning inventory: Materials 26000000 10800000 Labor 14000000 12000000 Overhead 11500000 13200000 Cost from preceding department 12000000 Assembly Dep FinishingDep 4200 Units in beginning inventory:"" Assembly (70% materials, 50% labor, 40% overhead) Finishing (90% materials, 70% labor, 60% overhead) ??? ??? 21200 Units started in process in Assembly Department this period 20.200 Units transferred from Assembly to Finishing Department this period 19700 Units transferred from Finishing to Finished Goods this period UNITS SPOILED in process this period 500 Units in ending inventory: Assembly (90% materials, 80% labor, 70% overhead) ??? Finishing (100% materials, 80% labor, 100% overhead) 500 4200 Cost added during the current period: Materials 260000000 70000000 Labor 46000000 52000000 Overhead 90000000 70000000 372630103 Cost added preceding dep (TIC) Cost in beginning inventory: Materials 26000000 10800000 Labor 14000000 12000000 Overhead 11500000 13200000 Cost from preceding department 12000000

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