Pacific Inc uses a process costing system. A unit ofproduct passes through three departments- Moulding, Assembly and Finishing -before it is completed. The following production took place in the Finishing Department during August: Units 1 400 14 000 11 900 Work in process inventory, 1 August Units transferred in from Assembly Department Units transferred out to finished goods inventory Raw material is added at the beginning of processing in the Finishing Department. The work in process inventory was 70 per cent complete as to conversion on 1 August, and 40 per cent complete as to conversion on 31 August Pacific Inc uses the weighted average method of process costing. The equivalent units and costs per equivalent unit ofproduction for each cost element for the Finishing Department are shown as follows: Equivalent units Cost per alent unit $5.00 1.00 3.00 $9.00 Transferred-in costs Raw material Conversion cost Total 15 400 15 400 13 300 Required 1. Calculate the following amounts [10 Marks] (a) Cost of units transferred to finished goods inventory during August. (b) Cost of the Finishing Department's work in process inventory on 31 August. 2. The total costs of prior departments included in the work in process inventory of the Finishing Department on 1 August amounted to $6750. Prepare the journal entry to record the transfer of the goods from the Assembly Department to the Finishing Department during August. [5 Marks]