(Appendix) Cost of Production Report and Journal Entries; Fifo Costing. Upton Manufacturing Company ^ manufactures a single model of a portable work bench. The company uses a process cost system, with a fifo cost flow assumption, and it maintains a separate work in process account for each of its two producing depart¬ ed ments, Cutting and Assembly. The work bench components are cut out of wood and metal in the Cutting Department and then transferred to the Assembly Department, y/here they are put together with the addition of springs, hinges, and handles purchased from outside vendors. Data related to operations in October are: LO3 Cutting Assembly Units in beginning inventory: , *

Cutting (90% materials, 40% labor, and 20%overhead). 1,000 Assembly (75% materials, 60% labor, and 60%overhead). 2,000 Units started in process in Cutting Department thisperiod. 9,000 Units transferred from Cutting to Assembly thisperiod. 8,500 8,500 Units transferred from Assembly to Finished Goods thisperiod. 9,500 Units in ending inventory:

Cutting (100% materials, 80% labor, and 100%overhead). 1,500 Assembly (60% materials, 40% labor, and 40%overhead). 1,000 Cutting Assembly Cost in beginning inventory:

Cost from precedingdepartment. $4,000 Materials. $8,010 400 Labor. 1,750 800 Factoryoverhead. 790 1,600 Cost added during the current period:

Materials. 81,900 30,100 Labor. 18,600 21,315 Factoryoverhead. 39,200 30,015 Required:

(1) Prepare an October cost of production report for each department.

(2) Prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during October and to record the transfer of units from Cutting to Assembly and from Assembly to Finished Goods Inventory.