Cost of Production Report—Average and Fifo Process Costing Methods; Joint Products and By-Product. The following data appear in the records of Rodomontade Company for February: LO5 Process 1 2 3 Unit data:

Beginning work in process inventory

('A complete in Processes 2 and3). — 3,000 3,000 Started orreceived. 32,000 10,000 20,000 32,000 13,000 23,000 Process 2

3 Transferred to Process2.

Transferred to Process3.

Transferred to finished goodsstoreroom.

10,000 20,000 9,000 20,000 Transferred out asby-product.

Normalloss.

2,000 _

1,000 Ending work in process inventory ('A complete in Process 2 and A complete in Process 3).

*

s 4,000 2,000 32,000 13,000 23,000 Partial summary of costs:

Beginning work in process inventory Transferred from process1.

$ 6,000

$11,500 Labor and factoryoverhead.

—

2,000 3,000 Cost added by department:

Materials.

$58,000 _

_ Labor and factoryoverhead.

30,000 18,000 60,000 Less market value of by-product.

$88,000 4,000

$84,000 Materials are issued in Process 1. At the end of processing in Process 1, the by-product appears. The bal¬ ance of production is transferred out—some to Process 2 for additional processing of one main product and the rest to Process 3 for additional processing of the other main product.

The joint cost of Process 1, less the market value of the by-product, is apportioned to the main products using the market value method at the split-off point. Sales prices for the finished products of Processes 2 and 3 are $10 and $15, respectively. The by-product sells for $2.

Required:

(1) Prepare a departmental cost of production report for February, assuming that the company uses the aver¬ age costing method. (Carry unit cost computations to four decimal places and round off multiplications to the nearest dollar.)

(2) Using computations from requirement 1, prepare journal entries transferring cost from each of the three processes.

(3) Repeat requirement 1, assuming that the company uses the fifo costing method and that the normal loss in Process 3 is from units transferred in during February.

(4) Using computations from requirement 3, prepare journal entries transferring cost from each of the three processes.