U-Belt Corp. is in the business of manufacturing high-quality leather products, one of which is its trademark slimming leather belt. Production begins in the Treatment Department where the leather strip for the belt is manufactured, after which the strip is transferred to the Finishing Department. The Treatment Department uses actual costing and WAVE while the Finishing Department uses normal costing and FIFO. Both departments incur overhead evenly throughout their processes. In the Treatment Department, raw leather strips are introduced at the beginning of the process. At 40% completion, a chemist coats and injects the leather strips with chemical D-14, causing the leather to be unstable at a molecular level, which in turn generates constant micro-electric shocks that help slim down the body of the wearer. Units are inspected for spoilage and defects right before D-14 treatment. Normal spoilage threshold is 5% of units inspected, while rework is not expected. 1,400 units were in the department's beginning WIP inventory (50% complete) and another 6,600 units were started in the current period. 5,400 units were transferred out to the Finishing Department, while 700 units remained in WIP inventory (75% complete). Upon inspection, 600 units were deemed defective, and rework costs of Php8,400 were incurred. Such units were considered irregular and can be sold at Php300 per unit. Spoiled units have a salvage value of Php50 per unit. Scrap leather recovered from the production floor was sold for Php4,500. In the Finishing Department, chunks of metallic ore called cobaltite are added at the beginning of the process and forged into a belt buckle. The forging procedure is completed halfway into the process, at which point the leather strip is transferred in from the Treatment Department and attached to the buckle. Units are inspected for spoilage and defects after the attachment of the buckle. At the end of the process, units are again inspected for spoilage and defects before a laborer manually polishes the buckle. For the first inspection point, normal spoilage and normal rework threshold is 5% of units passing the inspection point. For the second inspection point, no spoilage and rework are expected. 800 units were in beginning WIP inventory (60% complete). 4,200 units were transferred out to the finished goods storeroom, while 400 units remained in WIP inventory (70% complete). 300 units were found to be spoiled at the second inspection point. 150 units were deemed reworkable at the first inspection point and another 350 units at the second inspection point. Rework costs amounted to Php30 per unit. All reworked units were considered irregular and can be sold at Php450 per unit. Spoiled units have a salvage value of Php125 per unit. Waste disposal costs amounted to Php2,000. Cost information for the two departments follows: TREATMENT Department FINISHING Department WIP, beginning Current period WIP, beginning Current period Leather Php123,500 Php578,500 Trans-in Php259,088 ? Chemical D-14 219,700 863,970 Cobaltite 75,496 Php521,770 Direct Labor 43,500 131,200 Direct Labor - 27,780 Overhead 34,760 338,910 Overhead 43,464 359,840 Total Php421,460 Php1,912,580 Total Php378,048 Required: For both departments, prepare/summarize: 1) Cost of production reports 2) Current period journal entries 3) Assignment of costs