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P6-2 Cost of Production Report and Journal Entries; Average Cost. Rimirez Tool Corporation manufactures a single model of a commercial cutting tool. The product is cast from molten steel in the Casting Department, and then it is transferred to the Finishing Department, where it is ground and polished. Data related to December operations are: (1) Assuming the company uses a process cost system with an average cost flow assump- Required: tion, prepare a cost of production report for each department for December. (2) Assuming the company maintains a separate work in process account for ench of is two producing departments, prepare the appropriate general journal entries to recond the charge to the producing departments for the costs incurred during December and to record the transfer of units from Casting to Finishing and from Finishing to Finished Goods Inventory