X company uses flow cost accounting to manufacture catheters. A catheter consists of two parts that are made by independent departments A) the metal shaft from stainless steel B) The main part from rubber.In this way the corporation has two productive departments Metal shafts and catheters

Those two departments are totally independent. Bellow is data with regards to the metal shaft department for September 2020.

• Stainless steel is the raw material and it is used as an input at the start of the productive process. In order to create 1 unit of product 50 grams of stainless steel are needed. Bellow is dat with regards to the inventory of steel for September 2020.

	Grams	Purchase cost (in grams)
Initial Inventory	2000	2.5
Purchases	8000	10
Final Inventory	2500

• The initial inventory of unfinished goods on 1/9/20 was 80 metal catheters and their % of completeness in relation to General Industrial costs and direct labor was 40%/ The initial amount of unfinished goods had absorbed 2000 $ in general industrial costs 13140 of direct labor and 6630 g of steel
• The % of completeness of final inventory of unfinished goods in 30/09/20 was 80% with regards to general industrial costs and direct labor.
• The general industrial costs of the department metal shafts for September was 8700 and the cost of direct labor was 96000

Questions

1Prepare the production cost report for the metal shaft department for September according to the hypothesis of the weighted average cost for all inventories.

2. Prepare the journal entries for the metal shaft department.