Cost Accounting B 1259019 Process Cost Handout 5 Process Cost - Example Puzzle Me Company manufactures puzzles. It has two production departments Assembly and Finishing Department. The direct materials for the assembly department are added at the beginning of the process. The conversion costs are added evenly throughout the process. 1When the assembly department nishes work on each puzzle, it is immediately transferred to the nishing department. The Assembly department has the following data for July: Units: Beginning Inventory: 8,000' (100% complete to Materials, 50% to Conversion Cost) Started in production in July 42,000 Transferred out in July 40,000 Ending Inventory E"??? (100% complete to Materials, 25% to Conversion Costs: Beginning Inventory: Direct Materials $9,800 Conversion $3,910 Costs added during July Materials $130,200 Direct Labor $22,090 Factory Overhead $42,000 Required: 1. Do a complete production report using Average Cost Flow for the Assembly Department. Prepare journal entries for all July transacu'ons affecting WIPAssembiy 3. Set up a TAccount for WIP Assembly 8: W'IP Finishing. Make sure to enter the beginning balance. 4. Do a complete production report using FIFO Cost Flow. 03