Grand Canyon Toy Company manufactures a talking toy Christmas kitten in four sequential processes. The Christmas kitten is a new remote control toy that will be available this year just in time for Christmas. An internal computer in the kitten makes the toy meow, walk, purr, and speak English or Spanish. The computer memory may be programmed with short phrases such as "Merry Christmas" or "Happy New Year." The Fourth process is the last step before the kittens are transferred to the warehouse as finished inventory. All material needed to complete the Christmas kittens is added at the 70 percent stage of completion in the Fourth Process. Grand Canyon Toys accumulated the following cost information for the Fourth process during the month of October: Summary of Units Beginning Work in Process.... 40,000 Units transferred in from the third process during October 140,000 Units completed and transferred to finished goods 130,000 Ending Work in Process (50% as to conversion costs). 50,000 Summary of Costs Beginning Work in Process: ($960,000 transferred-in costs, $215,000 direct materials, & $445,000 conversion costs).. $1,620,000 Cost of units transferred in from the third process. 1.740,000 Manufacturing costs incurred in October: Direct materials 1,280,000 Conversion costs 2,500,000 Total costs to account for.. $Z 140,000 Instructions: a. Prepare a cost of production report for the month of October b. Prepare journal entries to record: (1) Transfer of the 140,000 units from the Third Process into the Fourth process. Manufacturing costs charged to the Fourth Process. (3) Transfer of the completed units from the Fourth Process to the finished goods warehouse Post the above entries to a "T" account, making sure it balances with the amount (2) c. D.Focu Summary of Units Beginning Work in Process.... Units transferred in from the third process during October Units completed and transferred to finished goods ....... Ending Work in Process (50% as to conversion costs) 40,000 140,000 130,000 50,000 Summary of Costs Beginning Work in Process: ($960,000 transferred-in costs, $215,000 direct materials, & $445,000 conversion costs)... ............ $1,620,000 Cost of units transferred in from the third process. 1,740,000 Manufacturing costs incurred in October: Direct materials ...... 1,280,000 Conversion costs 2,500,000 Total costs to account for. $7,140,000 Instructions: a. Prepare a cost of production report for the month of October b. Prepare journal entries to record: (1) Transfer of the 140,000 units from the Third Process into the Fourth process. (2) Manufacturing costs charged to the Fourth Process. (3) Transfer of the completed units from the Fourth Process to the finished goods warehouse. Post the above entries to a "T" account, making sure it balances with the amount you assigned to ending work in process on the cost of production report. C. Grand Canyon Toy Company manufactures a talking toy Christmas kitten in four sequential processes. The Christmas kitten is a new remote control toy that will be available this year just in time for Christmas. An internal computer in the kitten makes the toy meow, walk, purr, and speak English or Spanish. The computer memory may be programmed with short phrases such as "Merry Christmas" or "Happy New Year." The Fourth process is the last step before the kittens are transferred to the warehouse as finished inventory. All material needed to complete the Christmas kittens is added at the 70 percent stage of completion in the Fourth Process. Grand Canyon Toys accumulated the following cost information for the Fourth process during the month of October: Summary of Units Beginning Work in Process.... 40,000 Units transferred in from the third process during October 140,000 Units completed and transferred to finished goods 130,000 Ending Work in Process (50% as to conversion costs). 50,000 Summary of Costs Beginning Work in Process: ($960,000 transferred-in costs, $215,000 direct materials, & $445,000 conversion costs).. $1,620,000 Cost of units transferred in from the third process. 1.740,000 Manufacturing costs incurred in October: Direct materials 1,280,000 Conversion costs 2,500,000 Total costs to account for.. $Z 140,000 Instructions: a. Prepare a cost of production report for the month of October b. Prepare journal entries to record: (1) Transfer of the 140,000 units from the Third Process into the Fourth process. Manufacturing costs charged to the Fourth Process. (3) Transfer of the completed units from the Fourth Process to the finished goods warehouse Post the above entries to a "T" account, making sure it balances with the amount (2) c. D.Focu Summary of Units Beginning Work in Process.... Units transferred in from the third process during October Units completed and transferred to finished goods ....... Ending Work in Process (50% as to conversion costs) 40,000 140,000 130,000 50,000 Summary of Costs Beginning Work in Process: ($960,000 transferred-in costs, $215,000 direct materials, & $445,000 conversion costs)... ............ $1,620,000 Cost of units transferred in from the third process. 1,740,000 Manufacturing costs incurred in October: Direct materials ...... 1,280,000 Conversion costs 2,500,000 Total costs to account for. $7,140,000 Instructions: a. Prepare a cost of production report for the month of October b. Prepare journal entries to record: (1) Transfer of the 140,000 units from the Third Process into the Fourth process. (2) Manufacturing costs charged to the Fourth Process. (3) Transfer of the completed units from the Fourth Process to the finished goods warehouse. Post the above entries to a "T" account, making sure it balances with the amount you assigned to ending work in process on the cost of production report. C