Requirement 1. Gambler Suppliers produces ceramic poker chips, using two sequential production departments: Poker Chip Forming and Poker Chip Finishing. The following information was found for Gambler Suppliers first production process for the month of January, the Poker Chip Forming Department.

Use the five steps of process costing to calculate the cost that should be assigned to (1) units completed and transferred out and (2) units still in ending work in process inventory. Then prepare the journal entry needed at month-end to transfer the costs associated with the formed tiles to the next department, Poker Chip Finishing.

Requirement 2. The following is information that pertains to the Poker-Chip Finishing Department for the month of January.

1. Complete the five-step process costing procedure to assign the Poker-Chip Finishing Departments total costs to account for to units completed and to units in ending work in process inventory.
2. Make the journal entry to transfer the appropriate amount of cost to Finished Goods inventory.

Information about units: Beginning work in process, January 1 Started in production during January Completed and transferred to Finishing Department during January Ending work in process, January 31 (30% complete as to direct materials, 45% complete as to conversion costs) 3,000 units 15,000 units 14,000 units 4,000 units Information about costs: Beginning work in process, January 1 (consists of $1,000 of direct materials cost and $3,200 of conversion costs) $ 4,200 Direct materials used in January $ 4,500 Conversion costs incurred in January $ 51,400 Information about units: Beginning work in process, January 1 (20% complete as to direct materials, 70% complete as to conversion) Transferred in from Poker Chip-Forming Department during January Completed and transferred to Finished Goods Inventory during January Ending work in process, January 31 (25% complete as to direct materials, 70% complete as to conversion costs) 1,500 units 14,000 units 10,000 units 5,500 units Information about costs: Beginning work in process, January 1 ($5,726 transferred-in costs, $700 direct materials costs, $6,000 conversion costs) Transferred in from Poker Chip-Forming Department during January Poker Chip-Finishing Department direct materials added during January Poker Chip-Finishing Department conversion costs incurred during January 12,426 $ 53,446 $ 7,000 $ 18,500