Ballet manufacturing

Ballet manufactures shoes that are processed in three departments - cutting, assembly and packaging. Leather is cut according to shoe design specifications in the cutting department. The cut pieces are then transferred to the assembly department to be sewn into shoes. Any additional materials such as soles and embellishments are added when the shoes are 70% processed in the assembly department. The completed shoes are then transferred to the packaging department where they are packed and boxed for sale. Ballet uses FIFO process costing to cost their shoes. The company assumes that conversion cost is incurred uniformly throughout the production processes. Ballet manufactures high end shoes and is very concerned about the quality of its products. Therefore, the company inspects its products at the end of each process. Currently, the company's policy is to consider spoilage amounting to less than 5% of the total processed units as normal.Below is cost information pertaining to the assembly department for the month of June 201X. Work in process, June 1 Physical Unit 1,000 units Cost Incurred: Transferred-in 9,400 Direct Materials 1,200 Conversion Costs S 2,120 Production in June Units Started 29,000 units Units Spoiled 200 units Cost Incurred: Transferred-in $274,050 Direct Materials $ 32,640 Conversion Costs $ 74,048 Work in process, June 30 1,800 units Percentage of completion: Work in process, June 1 80% Work in process, June 30 60% Required: (i) Compute the balance in work in process as of June 30, 201X. State any assumption(s) necessary for your computation. (ii) Prepare the journal entry for cost transferred out to the packaging department in June 201X