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 January $2024$ are as follows: Sales $25,000$ cameras

Selling price $$335$ Mechanical

Cameras in process, January $1$ Units

Material A Material B Direct labour Overhead

Cameras started into production Units

per camera

$70\%$ complete $2,800$

$$47,000$ $$163,000$ $$12,800$ $$25,200$

$36,000$

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

$28,000$

$28\%$ complete

Costs added to production in January Material A

Material B Direct labour Overhead

Completed and transferred out Units

Cameras in process, January $31$

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, January $1$ Units

Transferred$-$in Material X Conversion

Costs added to production in January Material X

Material Y

Conversion

Cameras in process, January $31$

Units

$63\%$ complete $5,300$

$$435,000$ $$12,000$ $$43,000$

$$63,000$ $$182,000$ $$93,900$

$80\%$ complete $7,200$

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

Testing

Cameras in process, January $1$ Units

Transferred$-$in

Conversion

Costs added to production in January

Conversion

Completed and transferred out

Units

Cameras in process, January $31$

Units

$40\%$ complete $1,800$

$$219,000$ $$1,600$

$$86,400$

$25,000$

$60\%$ complete

$950$

Normal spoilage is $6\%$ of units completed. All spoilage is identified at the end of production in the testing department.

Finished Goods

December $31$

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

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 January $2024.$

d$.)$ Compute gross profit for January $2024.$

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 January $2024.$

d$.)$ Compute gross profit for January $2024.$

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