(Appendix) Cost of Production Report and Journal Entries; Fifo Costing. Marston Manufacturing Company sells a single model of an auxiliary fuel tank which is manufactured in two producing departments, Fabricating and Finishing. Each fuel tank is cut from steel, shaped, and welded to its basic form in the Fabricating Department. Then the tanks are transferred to the Finishing Department, where they are coated with a sealant and painted. Data related to August operations are: LO3 Fabricating Finishing Units in beginning inventory:

Fabricating (100% materials, 40% labor, and 80%overhead). 400 Finishing (40% materials, 20% labor, and 20%overhead). 600 Units started in process in Fabricating Department thisperiod. 1,200 Units transferred from Fabricating to Finishing thisperiod. 1,100 1,100 Units transferred from Finishing to Finished Goods thisperiod. 1,300 Units in ending inventory:

Fabricating (100% materials, 80% labor, and 90%overhead). 500 Finishing (100% materials, 60% labor, and 60%overhead). 400 Fabricating Finishing Cost in beginning inventory:

Cost from precedingdepartment. $74,000 Materials. $29,280 230 Labor. 1,900 1,600 Factoryoverhead. 11,800 2,520 Cost added during the current period:

Materials. 90,000 2,920 Labor. 16,080 19,880 Factoryoverhead. 46,740 29,820 Required:

(1) Assuming the company uses a process cost system with a fifo cost flow assumption, prepare a cost of pro¬ duction report for each department for August.

(2) Assuming the company maintains a separate work in process account for each of its two producing depart¬ ments, prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during August and to record the transfer of units from Fabricating to Finishing and from Finishing to Finished Goods Inventory.