Ottawa Manufacturing is a furniture manufacturer with 2 departments: Moulding and Finishing. The company uses the FIFO Method (FIFO) of process costing. In august, the following data were recorded for the Finishing department:

Unit of beginning work-in-process inventory	12,500
Percent completion of beginning work-in-process units	25%
Cost of direct materials in beginning work-in-process	0
Units started	97,500
Units completed	75,000
Units in ending inventory	25,000
Percentage completion of ending work-in-process units	95%
Spoiled units	10,000
Total costs period
Direct materials	$819,000
Direct manufacturing labour	$794,000
Manufacturing overhead	$770,000
Work-in-process beginning
Transferred-in-costs	$103,625
Conversion costs	$52,500
Costs of units transferred in during current period	$809,375

Conversion costs are added evenly during the process. Direct materials are added when production is 70% complete. The inspection point is at the 80% stage of production. Normal spoilage is 8% of all goods units that pass the inspection. Spoiled units are disposed of at $10 per unit.

Required

1. Prepare the production report of the Finishing department for the month of August using the FIFO METHOD.
2. Prepare the accounting entries to record for the month of August:

The Cost of Goods Manufactured (COGM) of the Finishing department into the Finished Goods (FG) inventory.

And

The losses of the Finishing department.