-1 Cost of Production Report and Journal Entries; Average Cost. Meninquez Cabinet Company manufactures a single model of a commercial prefabricated wooden cabinet. The conpany uses a pr acess cost system with an average cost flow assumption. It maintains a separate work in process account for each of its two producing departments, Cutting and Assembly. The b.sic cabinet components are cut out of wood in the Cutting Department and then trinsferred to the Assembly Department, where they are put together with the addition of hinges and handles purchased from outside vendors. Data related to manufacturing operations in August are: Required: (1) Prepare a cost of production report for each department for August. (2) Prepare the appropriate general jourmal entries to record the charge to the producing departments for the costs incurred during August and to record the transfer of units from Cutting to Assembly and from Assembly to Finished Goods Inventory