I. PROBLEM SOLVING (44 points) Solve the following items. Write your answers and complete solutions on a separate sheet of paper. 1. Plaid-Clad manufactures golf bags in a two-department process: Assembly and Finishing. The Assembly Department uses weighted average costing. The percentage of completion of overhead in this department is unrelated to direct labor. The Finishing Department adds hardware to the assembled bags and uses FIFO costing. Overhead is applied in this department on a direct labor basis. For June, the following production data and costs were gathered: Assembly Department: Units Beginning WIP Inventory (100% complete for DM; 40% complete for DL; 30% complete for OH) Units started Ending WIP Inventory (100% complete for DM; 70% complete for DL; 90% complete for OH) 250 8,800 400 Assembly Department: Costs DM DL OH Total Beginning WIP Inventory P Current period 3,755 P 100,320 690 P 63,606 250 P 4,695 27,681 191,607 Total costs P 104,075 P 64,296 P 27,931 P 196,302 Finishing Department: Units Beginning WIP Inventory (100% complete for transferred in; 15% complete for DM; 40% complete for conversion) Units transferred in Ending WIP Inventory (100% complete for transferred in; 30% complete for DM; 65% complete for conversion) Finishing Department: Costs Beginning Inventory Current period Total costs REQUIRED: DM DL OH Total P 2,176 P 188,570 30 P 95 P 2,301 P 190,746 P 15,471 15,501 21,600 225,641 P 21,695 P 227,942 100 8,650 200 a. Prepare a cost of production report for the Assembly Department. (15 points) b. Prepare a cost of production report for the Finishing Department. (15 points) c. Prepare the journal entries for the Finishing Department for June. (14 points: 2 points per correct journal entry)