Cannon Inc.

Cannon Inc. produces the very popular PowerShoot digital camera. All sales are made on account. The manufacturing process takes place in three sequential departments: mechanical, assembly, and testing. Conversion costs in all three departments are added on a uniform basis.

Partial sales, cost, and production data for September $2023$ are as follows: Sales $25,000$ cameras

Selling price $$330$

Mechanical

Cameras in process, September $1$ Units

Material A Material B Direct labour Overhead

Cameras started into production Units

per camera

$75\%$ complete $2,900$

$$47,000$ $$163,000$ $$12,600$ $$25,200$

$36,000$

Costs added to production in September

Material A Material B Direct labour Overhead

Completed and transferred out Units

Cameras in process, September $30$

$$737,500$ $$2,150,000$ $$179,000$ $$355,000$

$28,000$

$25\%$ complete

Material A is added to the mechanical process on a uniform basis Material B is added at the beginning of the mechanical process

Assembly

Cameras in process, September $165\%$ Units $5,300$ Transferred$-$in $$435,000$ Material X $$12,000$ Conversion $$45,000$

Costs added to production in September

Material X $$65,000$ Material Y $$182,000$ Conversion $$93,900$

Cameras in process, September $3080\%$ Units $7,200$

Material X is added when assembly is $40\%$ complete Material Y is added when assembly is $85\%$ complete

Testing

Cameras in process, September $1$ Units

Transferred$-$in

Costs added to production in September Conversion

Completed and transferred out Units

Cameras in process, September $30$ Units

complete

complete

Normal spoilage is $5\%$ of units completed. All spoilage is identified at the end of production in the testing department.

Finished Goods

September $1$

Units $2,200$ Weight$-$average unit cost $$120$ FIFO unit cost $$130$

$40\%$ complete $1,800$

$$216,000$ $$1,600$

$$86,400$

$25,000$

$60\%$ complete

$950$

Required:

$1.)$ Using the weighted$-$average method,

a$)$ Prepare production reports for the three departments.

b$)$ Prepare journal entries to record all activities in each department. c$)$ Prepare a finished goods inventory schedule for September $2023.$ d$)$ Compute gross profit for September $2023.$

e$)$ Prepare journal entries to record sales and cost of goods sold.

$2.)$ Using the FIFO method,

a$)$ Prepare production reports for the three departments.

b$)$ Prepare journal entries to record all activities in each department. c$)$ Prepare a finished goods inventory schedule for September $2023.$ d$)$ Compute gross profit for September $2023.$

e$)$ Prepare journal entries to record sales and cost of goods sold.