Q4: PROCESS COST FLOWS AND REPORTS Lanyard Home Paint Company produces exterior latex paint, which it sells in four litre containers. The company has two processing departments Base Fab and Finishing. White paint, which is used as a base for all of the company's paints, is mixed from raw ingredients in the Base Fab Department. In the Finishing Department, pigments are added to the basic white paint, the pigmented paint is squirted under pressure into four litre containers, and the containers are labelled and packed for shipping. Information relating to the company's operations for April is as follows: 1. Raw materials were issued for use in production: Base Fab Department, $851,000; Finishing Department, $629,000 2. Direct labour costs were incurred: Base Fab Department, $330,000; Finishing Department, $270,000. 3. Manufacturing overhead cost was applied: Base Fab Department, $665,000; Finishing Department, S405,000. 4 Paint that had been prepared for shipping was transferred from the Finishing Department to Finished Goods: $3,200,000 I Required: 1. 2. Prepare journal entries to record items (a) through (d) above. Post the journal entries from (1) above to T accounts. The balance in the Base Fab Department's Work in Process account on April 1 was $150,000; the balance in the Finishing Department's Work in Process account was $70,000. After posting entries to the accounts, find the ending balance in each department's Work in Process account 3. Prepare a production report for the Base Fab Department for April. The following additional information is available regarding production in the Base Fab Department during April: Production data for four-itre containers of paint: Units (containers) in process, April 10% complete as to materials, 60% complete as to labour and overhead 30.000 Units (containers) started into production during April 420.000 Units (containers) completed and transferred to the Finishing Department 370.000 Units (containers) in process, April 30: 50% complete as to materials, 25% complete as to labour and overhead. 80.000 Cost data Work in process inventory, April t Materials $ 92,000 Labour 20000 Overhead 37.000 Total cost $60.000 Cost added during April Materials $851000 Labour 330,000 Overhead 665,000 4. Prepare the journal entry to record the transfer of basic white paint from the Base Fab Department to the Finishing Department, and post it to the appropriate T-accounts (Hint: The dollar amount of the transfer was determined in (3) above)