Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) Cost None 5,000 $ 15,000 January 31 Quantity (pounds) Cost None 2,000 ? The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Costs of Production Molding department Finishing department Direct Materials $ 450,000 Conversion $ 90,000 80,290 The molding department started 50,000 pounds of pro in January. The firm uses the FIFO method of process costing. Required: 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. Production Information Finishing Department Physical Units FIFO Equivalent Units Direct Conversion Materials Transferred-in Costs Completion Percentage Input: Beginning WIP Direct materials 5,000 0 0% 0 0 0 Conversion 0 40% 0 (2.000) 0 50,000 Units started or trans-in 50,000 100% 0 0 Total to account for 55,000 0 0 0 100 % 0 0 53,000 Output: Units finished or trans-out Ending WIP Direct materials 53,000 2,000 0 0 0 0 0 % 401% 0 0 0 Conversion Total accounted for 55,000 Total equivalent units 50,000 0 51,000 Unit Cost Determination Trans-in Materials Conversion Total Beginning WIP $ 15,000 620,290 Current costs 540,000 0 80,290 $ 0 $ 80,290 $ 635,290 Total Divide by equivalent units FIFO Cost per EU $ 540,000 50,000 $ 10.80 0 $ 0.00 $ 10.80 Cost Assignment Completed and Ending Work Trans-Out in Process Total units 0 0 0 0 0 Finished goods Prior period costs in Beginning WIP Current period cost to complete Beg WIP Direct materials Conversion Units started and finished Total Ending WIP Trans-in Direct materials Conversion Equiv units Equiv units $ 0 2,000 units 1001% 01% 401% 21,600 0 0 Total costs accounted for $ 0 $ 0 $ 21,600