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 per camera

Mechanical

Cameras in process, September 1 75% complete

Units 2,900

Material A $47,000

Material B $163,000

Direct labour $12,600

Overhead $25,200

Cameras started into production

Units 36,000

Costs added to production in September

Material A $737,500

Material B $2,150,000

Direct labour $179,000

Overhead $355,000

Completed and transferred out

Units 28,000

Cameras in process, September 30 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 1 65% complete

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 30 80% complete

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 40% complete

Units 1,800

Transferred-in $216,000

$1,600

Costs added to production in September

Conversion $86,400

Completed and transferred out

Units 25,000

Cameras in process, September 30 60% complete

Units 950

Finished Goods

September 1

Units 2,200

Weight-average unit cost $120

FIFO unit cost $130

Normal spoilage is 5% of units completed. All spoilage is identified at the end of

production in the testing department.

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.