The GGK Doll Company manufactures small vinyi dolls. In the Molding Department, the first department, the doll bodies are formed. Direct materials are added at the beginning of the process.

Conversion costs are added evenly throughout the process. Inspection for spoiled units occurs at the 60% stage of completion. Completed units are transferred to the Finishing Department.

In the Finishing Department, the final necessities such as hair and clothing are placed on the doll bodies. Any defective units are reworked. Direct materials and conversion costs are added evenly throughout the process.

© The company’s policy is to treat the cost of spoiled units in production as a separate element

° of cost in the department in which the spoilage occurs. ml4

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Molding department Finishing department September data: Beginning units in process 520 780 % of completion 75% 10% Units started in process 1,780 Units transferred out of department 1,950 2,430 Ending units in process 150 300 % of completion 40% 70% Spoiled units: Normal 150 Abnormal 50 Direct materials Beginning work-in-process inventory; Costs from preceding department Direct labor Factory overhead (applied) Costs added during the period: Direct materials Direct labor Factory overhead (applied) Rework costs for normal defective units: $ 495.30 $254.80 270.40 171.60 225.00 104.00 250.00 941.20 1,580.00 552.60 1,475.00 279.40 1,330.00 Direct materials Direct labor Factory overhead (applied) Required: 24.00 16.00 4.00 a Prepare a cost of production report and journal entries for September for both departments using the weighted average costing method. b Prepare a cost of production report and journal entries for September for both departments using the fifo costing method. (Assume no spoilage from beginning work-in-process inventory.)