Beaumont Company produces baseball bats and cricket paddles. It has two departments that process all products. In the second department, direct materials for finishing the units are added near the end of the process. The following information is to produce units for the month of August. Physical Transferred Direct Conversion Units Materials In Costs Beginning work-in-process units 48,000 $24,000 $28,000 Units started this period 128,000 Units transferred this period 136,000 Ending work-in-process units 40,000 Cost added $128,000 $34,000 $68,500 * Beginning work in process: 100% transferred-in costs, 0% material, 80% complete as to conversion. Ending inventory: 100% transferred-in costs, 0% material, 30% complete as to conversion. Required: 1. Prepare a production cost report using FIFO. Round answer to 4 decimal places. 2. Prepare the journal entries.