Carefree Company (CC) produces miniature plastic cars. Two departments, casting and molding, are involved in the manufacturing. The process starts in the casting department before the products move to the molding department. The following information is available for the month of January: January 1 January 31 WIP Inventory Quantity Cost Quantity Cos (Grams) (Grams) t Casting Department None None 5,000 2,000 ? Molding Department RM15,00 0 The work in process in the molding department is estimated to be 0% complete for materials and 40% complete for conversion for the beginning of January. While for the end of January, the work in process will be 100% for materials and 40% for conversion. Also, the company had 3,000 spoiled miniature cars in February, 70% was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process. Costs of production for January follows: Costs of Materials Conversio Production Used Casting Department RM450,000 RM90,000 Molding 80,000 Department n Transferred in from the casting department into the molding department totaled 50,000 grams of product in January. The firm uses the FIFO method of process costing Required: 1. Prepare a report for the molding department for the month of January (17 Marks) 2. What does it mean by transferred in cost