Susu Segar Sdn Bhd is the producer of dairy products. One of its products, Milky is the main product for the company. The production of Milky involves two sequential processing departments namely Freezing Department and Packaging Department. In Freezing Department, all direct materials are added at the beginning of the process. Whereas in Packaging Department, all direct materials are added at the ending of the process. Conversion cost occurs uniformly throughout the production process for both departments.

The following information relates to Packaging Department for the month of October 2006:

Cost of beginning work in process inventory:

Transferred-in

Direct materials

Direct labour

Manufacturing overhead

Percentage of completion (conversion cost):

Beginning work in process inventory

Ending work in process inventory

RM61,000

RM69,000

RM40,000

RM24,200

60%

70%

Cost in the current period:

Direct materials

Direct labour

Manufacturing overhead

RM138,000

RM38,800

RM32,000

Additional information:

Beginning work in process inventory (units)

32,000

Units started in the month of October

67,000

Units completed and transferred out

69,000

Ending work in process inventory (units)

30,000

Transferred out cost from Freezing Department

RM335,000

REQUIRED:

(a)Prepare production report for Packaging Department using the weighted-average method.

(b)Prepare production report for Packaging Department using the first-in, first-out (FIFO) method.