Meninquez Cabinet Company manufactures a single model of a commercial prefabricated wooden cabinet. The company uses a process cost system with an average cost flow assumption. It maintains a separate work in process account for each of its two producing departments, Cutting and Assembly. The basic cabinet components are cut out of wood in the Cutting Department and then transferred to the Assembly Department, where they are put together with the addition of hinges and handles purchased from outside vendors. Data related to manufacturing operations in August are:

Required:
(1) Prepare a cost of production report for each department for August.
(2) Prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during August and to record the transfer of units from Cutting to Assembly and from Assembly to Finished Goods Inventory.

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Cutting Assembly Units in beginning inventory. Units started in process in Cutting Department this period. Units transterred from Cutting to Assembly this period... Units transferred from Assembly to Finished 200 600 650 250 650 800 Units in ending inventory: Cutting Department (90% materials and 60% conversion cost) 150 Assembly Department (40% materials and 20% conversion cost) 100 Cutting Assembly Cost in beginning inventory Cost from preceding department $5,365 530 795 $17.410 3,451 3,611 3,611 Labor. Factory overhead. Cost added during the current period: Cutting Assembly Labor Factory overhead $26,035 8,350 12,525 $14,273 20,989 20,989