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.