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Nofat Company produces a product in three departments. The product is cut out of sheet metal in the Cutting Department, then transferred to the Forming Department, where it is bent to shape and certain parts purchased from outside vendors are added to the unit. Finally, the product is transferred to the Finishing Department where it is painted and packaged. The company uses a process costing system with an average cost flow assumption to account for its work in process inventories. Materials are added at two different stages in the Forming Department. Material A is added at the beginning of the process, and Material B is added at the end of the process. At the end of May, there were 600 units in process in the Forming Department, 50% complete as to labor and overhead. During June, 3,900 units were received from the cutting Department, and 4,100 units were completed and transferred to the Finishing Department. At the end of June, there were 400 units still in process in the Forming Department, 30% complete as to labor and overhead. Cost data related to June operations in the Forming Department

Cost charged to the Department	Beginning Inventory	Added this period
Cost from preceding department	9,090	67,410
Material A	4,000	21,200
Material B		16,400
Conversion Cost	1,340	17,650
	14,430	122,660

Analyze .separately Material A from Material B in computing for equivalent units, cost analysis and cost accounted for.

Required:

a) Prepare a PCR for the month of Sept for the Forming Department of NOFAT Company using the WAM method with T Accounting Postings for WIP- Forming. Don't make journal entries

b) Prepare a PCR for the month of Sept for the Forming Dept using the FIFO method.

c) Is it correct to prepare a PCR for Forming if the data coming from the preceding department were computed used the WAM? Explain.

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