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USE FIRST-IN, FIRST-OUT COSTING

Sulu Company produces its finished product in two processing departments--Assembly and Packaging.

The following information is available for the month of July:

Assembly Department:

The beginning work-in-process inventory was $5,755 ($4,815 direct materials and $940 conversion costs) and consisted of 350 units that were 10% complete as to conversion costs.

During July, an additional 4,500 units were started into production.

A total of 4,650 units were completed and transferred out to the Packaging Department.

The ending work-in-process inventory consisted of 200 units which were 35% complete as to conversion costs.

The following costs were incurred during July: direct materials $73,800; direct labor $86,300; and overhead $40,195.

Direct materials are added at the beginning of the process in the Assembly Department and conversion costs are incurred evenly throughout the production process.

Packaging Department:

The beginning work in process inventory was $29,631 ($18,606 transferred-in costs and $11,025 conversion costs) and consisted of 450 units that were 70% complete as to conversion costs.

During July, a total of 4,800 units were completed and transferred out to Finished Goods Inventory.

The ending work in process inventory consisted of 300 units which were 60% complete as to conversion costs.

The following costs were incurred during July: direct materials $132,480; direct labor $60,000; and overhead costs $105,141.

Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process.

REQUIRED:

A. Prepare a production report for July for the Assembly Department.

B. Give the general journal entry to record the transfer of the completed units from the Assembly Department to the Packaging Department for July.

C. Prepare a production report for July for the Packaging Department.