The Company uses a single department production process. Materials are added at the start of the production process and labor and overhead are added as indicated. For July, 2009, the Company records have the following information: UNITS: Beginning WIP, 2/3 complete for labor; 1/3 complete for overhead 12,000 units Units started in process 40,000 units Units completed 44,000 units Ending WIP, 50% complete for labor; 25% complete for overhead 8,000 units PRODUCTION COSTS: Work in Process, Beginning of the Month: Materials $ 32,000 Labor 20,000 Overhead 9,400 61,400 Current Month Costs: Materials $ 280,000 Labor 160,000 Overhead 147,000 587,000 Total Costs $ 648,400
REQUIRED:
1. Prepare a Cost of Production Summary using the weighted average method. Prepare the appropriate journal entry to transfer completed goods at month end.
2. Prepare a Cost of Production Summary using the FIFO method. Prepare the appropriate journal entry to transfer completed goods at month end.