Home Depot Wallpaper Company makes the notebook used by paper manufacturers. Home Depot's three-step process includes rolling, designing, and cooking. On March 1, the rolling department had 1000 rolls of paper in the process. During March, the rolling department completed the mixing process for those 300 rolls and also started and completed the mixing process for an additional 3200 rolls of paper. The department started but did not finish the rolling process for an additional 1000 rolls, which were 30% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the Rolling process. The rolling department compiled the following data for March:

Requirements:

a. Prepare a production cost report for the rolling department for March.

b. Journalize all transactions affecting the company's rolling process during March. Assume labor costs are accrued and not yet paid.

Direct Material (S) 200 +STT Direct labor ($) 250+STT Manufacturing overhead (S) 400+STT Beginning inventory, Mar. 1 Costs added during march 6,000+STT 3,000 +STT 2,005+STT