Cost of Production Report and Journal Entries; Average Costing, jetter Engine Corporation manufac- ^ tures a single model of gasoline engine used in lawn mowers, portable generators, and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then, it is transferred to the Assembly Department, where the crank shaft, valves, pistons, and other component parts are added. After Assembly, it is transferred to the Finishing Department where the engine is tested. The company uses a process cost system, with an average cost flow assumption. Data related to February operations are: LO3 Casting Assembly Finishing Units in beginninginventory.

. 500 1,000 300 Units started in process thisperiod.

Units received from preceding department.

. 3,000 2,700 2,900 Units transferred out of department thisperiod.

. 2,700 2,900 2,800 Units in endinginventory.

. 800 800 400 Stage of completion with respect to materials.

. 100%

70%

Stage of completion with respect tolabor.

. 80%

30%

50%

Stage of completion with respect to overhead.

. 90%

30%

50%

Casting Assembly Finishing Cost in beginning inventory:

Cost from precedingdepartment.

$63,150

$42,840 Materials.

. $10,925 40,258 Labor.

. 338 12,426 2,760 Factoryoverhead.

Cost added during the current period:

. 2,839 12,426 4,140 Materials.

. 146,575 116,480 Labor.

. 16,362 44,408 12,240 Factoryoverhead.

. 48,461 44,408 18,360 Required:

(1) Prepare a cost of production report for each department for February.

(2) Assuming a separate work in process account is maintained for each producing department, prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during February and to record the transfer of units from Casting to Assembly, from Assembly to Finishing, and from Finishing to Finished Goods Inventory.