Recycle Industries of Toronto recycles galvanized steel from automobile bodies in two processes: shredding and degalvanizing. It processes galvanized steel auto bodies in the shredding process and send the shredded steel to the newly developed degalvanizing process which removes zinc by electrolysis. Zinc, which has a relatively high value, is the principal product of the process. The company transferred 6,000 metric tons of steel to the devalvanizing process this month. Neither process had any spoilage.

Because the galvanized steel is homogeneous and shredded in a continuous process, the company uses a process-costing accounting system to assign costs to it. The following information is available for the degalvanizing process during the last year.

RECYCLE INDUSTRIES, INC

Degalvanizing Process Last Year

				Degalvanizing Process
		Units	Shredding Process Costs	Direct Materials	Conversion Costs
Physical flow (metric tons)
Beginning inventory..		1,000		60% complete	75% complete
Ending inventory.		2,700		80% complete	45% complete
Transferred in		6,000
Cost incurred
Beginning inventory.			$ 7,100,000	$ 600,000	$ 420,000
Current costs...			43,200,000	2,500,000	6,475,000

Required

A) Prepare a production cost report for the degalvanizing process using weighted-average costing.

B) What journal entry would be made after preparing the production cost report for the degalvanizing process?