Because most of the parts for its irrigation systems are standard, Northern Illinois

Manufacturing handles the majority of its manufacturing as a process cost system. There

are multiple process departments. Three of these departments are the Molding, Welding,

and Assembly departments. All items eventually end up in the Packaging Department

which prepares items for sale in kits or individually.

The following information is available for the Molding department for January:

Work in process beginning:

Units in process $22,500$

Stage of completion for materials $80\%$

Stage of completion for labor and overhead $30\%$

Costs in work in process inventory:

Materials $$174,100$

Labor $70,500$

Overhead $104,650$

Total costs in beginning work in process $$349,250$

Units started into production in January $74,000$

Costs added to production:

Materials $$926,225$

Labor $609,476$

Overhead $914,214$

Total cots added into production in January $$2,449,915$

Work in process ending

Units in process $25,500$

Stage of completion for materials $60\%$

Stage of completion for labor and overhead $30\%$

Instructions:

Prepare a production cost report for Northern Illinois Manufacturing using the

weighted$-$average method and then show the journal entry for transferring the units

from Molding to the Welding Department.