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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Production Information } \\ \hline \multirow[t]{2}{*}{ Finishing Department } & \multirow[b]{2}{*}{\begin{tabular}{l} Physical \\ Units \end{tabular}} & & & \multirow{3}{*}{\begin{tabular}{c} Transferred-in \\ Costs \end{tabular}} & \multicolumn{2}{|c|}{ FIFO Equivalent Units } \\ \hline & & \multicolumn{2}{|c|}{ Completion Percentage } & & \begin{tabular}{l} Direct \\ Materials \end{tabular} & Conversion \\ \hline \multicolumn{6}{|l|}{ Input: } & \\ \hline Beginning WIP & 5,000 & & & & & \\ \hline Direct materials & & 7 & % & F & & \\ \hline Conversion & & 40 & % & & & \\ \hline Units started or trans-in & 50,000 & 100 & % & F & & \\ \hline Total to account for & 55,000 & & & & & \\ \hline \multicolumn{7}{|l|}{ Output: } \\ \hline Units finished or trans-out & & 7 & % & & & \\ \hline \multicolumn{7}{|l|}{ Ending WIP } \\ \hline Direct materials & & 7 & % & & & \\ \hline Conversion & & 7 & % & 7 & & \\ \hline Total accounted for & 0 & & & & & \\ \hline \multirow[t]{3}{*}{ Total equivalent units } & & & & 0 & 0 & 0 \\ \hline & \multicolumn{4}{|c|}{ Unit Cost Determination } & & \\ \hline & Trans-in & Materials & Conversion & Total & & \\ \hline \multicolumn{7}{|l|}{ Beginning WIP } \\ \hline Current costs & 48,000 & & & 48,000 & & \\ \hline Total & $48,000 & $ & 0 & 48,000 & & \\ \hline \multicolumn{7}{|l|}{ Divide by equivalent units } \\ \hline \multirow[t]{3}{*}{ FIFO Cost per EU } & & & & 0.00 & & \\ \hline & & & \multicolumn{3}{|c|}{ Cost Assignment } & \\ \hline & & & \begin{tabular}{c} Completed and \\ Trans-Out \end{tabular} & \begin{tabular}{c} Ending Work \\ in Process \end{tabular} & Total & \\ \hline Finished goods & & units & & & & \\ \hline \multicolumn{7}{|c|}{ Prior period costs in Beginning WIP } \\ \hline \multicolumn{7}{|c|}{ Current period cost to complete Beg WIP } \\ \hline \multicolumn{7}{|l|}{ Direct materials } \\ \hline Conversion & & Equiv units & & & & \\ \hline Units started and finished & & Equiv units & & & & \\ \hline Total & & & & & $ & \\ \hline Ending WIP & & units & & & & \\ \hline Trans-in & & % & & 7 & & \\ \hline Direct materials & & % & & & & \\ \hline Conversion & & % & & & & \\ \hline Total costs accounted for & & & 0 & 0 & $ & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Production Information } \\ \hline \multirow[t]{2}{*}{ Molding Department } & \multirow[b]{2}{*}{\begin{tabular}{c} Physical \\ Units \end{tabular}} & & & \multicolumn{2}{|c|}{ FIFO Equivalent Units } \\ \hline & & \multicolumn{2}{|c|}{ Completion Percentage } & \begin{tabular}{c} Direct \\ Materials \end{tabular} & Conversion \\ \hline \multicolumn{6}{|l|}{ Input: } \\ \hline \multicolumn{6}{|l|}{ Beginning WIP } \\ \hline Direct materials & & & % & & \\ \hline Conversion & & 7 & % & & \\ \hline Units started (lbs) & 50,000 & & & & \\ \hline Total to account for & 50,000 & & & & \\ \hline \multicolumn{6}{|l|}{ Output: } \\ \hline Units finished or trans-out (lbs) & 50,000 & & & 50,000 & 50,000 \\ \hline \multicolumn{6}{|l|}{ Ending WIP } \\ \hline Direct materials & & F & % & & \\ \hline Conversion & & & % & & \\ \hline Total accounted for (lbs) & 50,000 & & & & \\ \hline \multirow[t]{3}{*}{ Total equivalent units } & & & & 50,000 & 50,000 \\ \hline & \multicolumn{3}{|c|}{ Units Cost Determination } & & \\ \hline & \begin{tabular}{c} Direct \\ Material \end{tabular} & Conversion & Total & & \\ \hline \multicolumn{6}{|l|}{ Beginning WIP } \\ \hline Current costs & 450,000 & 90,000 & 540,000 & & \\ \hline Total & \$ 450,000 & $90,000 & 540,000 & & \\ \hline Divide by equivalent units & 50,000 & 50,000 & & & \\ \hline \multirow[t]{3}{*}{ FIFO Cost per EU } & 9.00 & 1.80 & 10.80 & & \\ \hline & & & \multicolumn{3}{|c|}{ Cost Assignment } \\ \hline & & & \begin{tabular}{c|} Units \\ Completed and \\ Transferred Out \end{tabular} & \begin{tabular}{c} Units in \\ Ending WIP \\ Inventory \end{tabular} & Total \\ \hline \multicolumn{6}{|l|}{ Finished goods } \\ \hline Prior period costs in Beginning WIP & & lbs & & & \\ \hline Current period cost to complete Beg WIP & & lbs & & & \\ \hline Cost of units started and finished & & Ibs & & & \\ \hline Total & & & 0 & & $ \\ \hline \multicolumn{6}{|l|}{ Ending WIP } \\ \hline Direct materials & & lbs & & & \\ \hline Conversion & & Ibs & & & \\ \hline Total costs accounted for & & & 0 & & $ \\ \hline \end{tabular} Required 2