Puzzle Me Company manufactures puzzles. It has two production departments Assembly and Finishing Department. The direct materials for the assembly department are added at the beginning of the process. The conversion costs are added evenly throughout the process. When the assembly department finishes work on each puzzle, it is immediately transferred to the finishing department.

The Assembly department has the following data for July:

Units:
Beginning Inventory:	8,000 (100% complete to Materials, 60% to Conversion Cost)
Started in production in July	42,000
Transferred out in July	40,000
Ending Inventory	???? (100% complete to Materials, 25% to Conversion
Costs:
Beginning Inventory:
Direct Materials	$9,800
Conversion	$3,910
Costs added during July
Materials	$130,200
Direct Labor	$22,090
Factory Overhead	$42,000

Required:	1.	Do a complete production report using Average Cost Flow for the Assembly Department.
	2.	Prepare journal entries for all July transactions affecting WIP-Assembly
	3.	Set up a T-Account for WIP- Assembly & WIP- Finishing. Make sure to enter the beginning balance.
	4.	Do a complete production report using FIFO Cost Flow.

AVERAGE PROCESS COSTING Product Flow Units to Account For Units Accounted For Beginning Work in Process Units started transferred in this period Total units to account for Completed and transferred out Ending Inventory Total units accounted for Direct Materials Conversion Equivalent Units of Production Units completed and transferred out Equivalent Units of ending work in process Direct Materials Conversion Equivalent Units of Production Cost per Equivalent Unit Direct Materials Conversion Total Costs of beginning work in process inventory Costs incurred this period Total Costs Divided by Equivalent Units of Production Cost per EUP Cost Assignment Costs of Units completed and transferred out Direct Materials Conversion Costs of Units completed this period Costs of ending work in process inventory Direct Materials Conversion Costs of ending work in process inventory Total Costs Accounted for FIFO PROCESS COSTING Department Product Flow Units to Account For Beginning Work in process inventory Units Started this period Units Accounted For Units comel Beg Inv Units start&completed Ending WIP Total units accounted for Total units to account for Direct Materials Conversion Equivalent Units of Production Equivalent Units Completed - Beg Inv. Equivalent Units Started & Completed Equivalent Units Ending WIP Equivalent Units of Production Direct Materials Conversion Total Cost per Equivalent Unit Costs of begin work in process inventory Costs incurred this period Total Costs / Equivalent Units of Production Costs per Equivalent Units of Production Cost Assignment Costs of Units completed and transferred out Beginning Inventory Costs to Complete Beginning Inventory Direct Material Conversion Costs of Units Started & Completed Direct Material Conversion Total Costs of Units completed Costs of ending work in process inventory Direct Materials Conversion Costs of ending work in process inventory Total Costs Accounted for JOURNAL PAGE 1 Date Description Post. Ref. Debit | Credit WIP WIP