Production Cost Report and Journal Entries: Weighted Average Method.

Home Building Products, Inc., manufactures plywood in two processing departments, Milling and Sanding, and uses the weighted average method for its process costing system. The table that follows shows information for the Milling department for the month of April.

Unit Information (Measured in Feet)	Milling
Beginning work-in-process inventory	24,000
Started or transferred in during the month	110,000
Ending work-in-process inventory: 80 percent materials, 70 percent labor, and 60 percent overhead	32,000
Cost Information
Beginning Work-in-Process Inventory
Direct materials	$ 9,000
Direct labor	$ 3,000
Overhead	$ 3,200
Costs Incurred during the Period
Direct materials	$45,000
Direct labor	$14,000
Overhead	$16,000

Required:

1. Prepare a production cost report for the Milling department for the month of April.
2. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4); minor differences may occur due to rounding the cost per equivalent unit in step 3.
3. For the Milling department at Home Building Products, Inc., prepare journal entries to record:
4. 1. The cost of direct materials placed into production during the month (from step 2).
   2. Direct labor costs incurred during the month but not yet paid (from step 2).
   3. The application of overhead costs during the month (from step 2).
   4. The transfer of costs from the Milling department to the Sanding department (from step 4).