Husky Ltd. manufactures toys using a continuous production process that flows through two departments: Forming and Finishing. In the forming department, various components are built and are transferred to the finishing department. In the finishing department, those components are assembled into Huskys final product and once finished, are transferred to Huskys Finished Goods Inventory. Husky uses the FIFO method of accounting for costs. In the Forming Department, Direct Materials are added at the start of the process, inspection occurs at the end of the process. For the Forming Department, spoilage of up to 3% of Good Units Completed is considered normal. Any amount of spoilage greater than that should be considered abnormal. In the Finishing Department, inspection takes place when 40% of conversion is complete. Direct materials are added at 45% of conversion. In the finishing department, spoilage of up to 2% of good units completed is considered normal. Any amount of spoilage greater than that should be considered abnormal.

Additional information follows:

Forming Department Direct Physical UnitsMaterials Conversion Work in Process January 1 25,000 $ 37,500 $ 9,000 Degree of Completion in 100% beginning WIP Units Started in January Good Units Transferred Out 50% 225,000 235,000 12,000 Work In Process January 31 Degree of Completion in Ending WIP Costs added in January 100% 60% $ 324,000 $174,525 Finishing Department PhysicalTransferred In Direct Units Materials Conversion Work in Process January 1 36,000 $ 79,920 $ 3,600 $46,800 Degree of Completion in beginning WIP 65% Units Transferred in from Forming in Januar Good Units Transferred Out Work In Process January 31 Degree of Completion in 240,000 20,000 Ending WIP 35% Costs added in Janua $ 22,440 $467,400 Required: Complete a Cost of Production Worksheet for both the Forming Department and the Finishing Department for the Month of January