Problem 1: Grand Monde Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system using the FIFO method to determine unit costs. Bicycle parts are manufactured in the Molding Department and transferred to the Assembly Department where they are partially assembled. After assembly, the bicycle is sent to the Packing Department. Cost-per-unit data for the 20-inch dirt bike has been completed through the Molding Department. Annual cost and production figures for the Assembly Department are presented as follows: PRODUCTION DATA Beginning inventory (100% complete as to transferred-in; 100% complete as to assembly material; 80% complete as to conversion) 3,000 units Transferred in during the year (100% complete as to transferred-in) 45,000 units Transferred to Packing 40,000 units Ending inventory (100% complete as to transferred-in; 50% complete as to assembly material; 20% complete as to conversion) 4,000 units COST DATA Transferred-In Direct Material Conversion Beginning inventory Current period Totals P 82,200 1,237,800 P 1,320,000 P 6,660 P 11,930 96,840 236,590 P 103,500 P 248,520 Damaged bicycles are identified on inspection when the assembly process is 70 percent complete; all assembly material has been added at this point of the process. The normal rejection rate for damaged bicycles is 5 percent of the bicycles reaching the inspection point. Any damaged bicycles above the 5 percent quota are considered to be abnormal. All damaged bikes are removed from the production process and destroyed. Prepare the cost of production report of Grand Monde Company.