The following information relates to the operations of LMN Company for the month of August 2018.

Units

In process, Aug. 1 (40% complete)1,000

Received from Dept. 18,000

Completed & transferred8,200

In process, Aug. 31 (20% complete)800

CostsIn Process 8/1Cost-August

Cost from preceding dept.P13,500P 81,000

Materials9,00072,000

Conversion costs5,03683,580

Materials in this department are added 100% at the beginning of the process.

Requirement:

Prepare cost of production report using:

1) Average Method

2) FIFO Method

Prepare the necessary journal entries for each method.