Preparing a cost of production report for two departments and making journal entries. All-Star Industries uses a process cost accounting system. All materials in the first department (Cutting) are placed in production at the start of the manufacturing process. Materials put into production in the second department (Mixing) are added in proportion to labor and overhead. Data for the month of March 19X5 follow. Assume that the company uses the FIFO method of costing.

Instructions 1. Complete the equivalent production computations for each department.
2. Prepare a cost of production report for each of the two departments. Carry the unit costs to three decimal places.
3. Prepare entries in general journal form to record the costs charged to each department, the costs transferred between departments, and the costs transferred out to finished goods. Date all entries March 31, 19X5.

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Cutting Mixing Costs Beginning Work in Process Department Department Costs in Prior Department -0- $21,678 Costs in Current Department Materials $ 6,840 908. Labor 2,106 370 Overhead 1,170 850 Current Department Costs-March Materials 95,220 13,150 Labor 75,660 8,900 Overhead 61,290 7,670 Quantities Beginning Work in Process 1,500 2,400 Started in Production 21.000 -0- Transferred In From Prior Department -0- 20,700 Transferred Out to Next Department 20,700 -0- Transferred Out to Finished Goods -0- 21,000 Ending Work in Process 1.800 2,100 Stage of Completion of Work in Process Beginning Materials complete 50% Labor and Overhead 30% 50% Ending Materials complete 75% Labor and Overhead 40% 75%