Armstrong Corporation produces a single product that is manufactured in two departments, Assembly and Finishing Units of product are started in the Assembly Department and then transferred to the Finishing Department, where they are completed Units are inspected for spoilage in the Finishing Department exactly halfway through the production process, after half of the direct materials and conversion costs have been added to the units. If spoilage is detected at this time, the spoiled units are removed from production and scrapped. Good units are transferred to finished goods inventory, normal spoilage is charged to good units completed, and abnormal spoilage is charged as a period expense to the income statement. Normal spoilage is expected to be 10% of the good units transferred to finished goods inventory during the month. At the end of June 12,000 units were still in process in the Finishing Department, 40% complete as to materials and 30% complete as to conversion costs. During July, 25,000 units were transferred from the Assembly Department to the Finishing Department, and 28,500 were transferred from the Finishing Department to finished goods inventory. At the end of July, the Finishing Department still had 4,500 units in process, 60% complete as to materials, and 40% complete as to conversion costs. Cost data related to July operations for the Finishing Department is provided below. Manufacturing overhead is applied to production in the Finishing Department at the rate of 120% of direct labor cost. ARMSTRONG CORPORATION COST DATA FOR FINISHING DEPARTMENT FOR MONTH OF JULY Beginning Inventory: Costs From Preceding Department $ Direct Materials 65,000 12.000 30,000 Direct Labor Current Period Costs: Costs From Preceding Department Direct Materials Direct Labor 76,200 80,400 227,000 REQUIRED: (1) Using the attached schedules, prepare a Cost of Production Report for the Finishing Department for the month of July, assuming a FIFO cost flow. Round costs per equivalent unit to four decimal places and all other dollar amounts to the nearest whole dollar. Prepare the general journal entry(ies), in good form, required by the company to record the transfer of costs out of the Finishing Department this period. Provide explanations for the entryties). (2) ARMSTRONG CORPORATION COST OF PRODUCTION REPORT-FINISHING DEPARTMENT--FIFO SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS FOR MONTH OF JULY Equivalent Units Physical Prior Department Direct Units Costs Materials Units To Account For Beginning WIP Inventory Units Started During Period Total Units To Account For Conversion Costs Units Accounted For: Units Completed During Period: A From Beginning WIP Inventory Units Started and Completed During Period Total Units Completed During Period Normal Spoilage Abnormal Spoilage Units in Ending WIP Inventory Total Units Accounted For