Smith Paper Co produces the paper used by wallpaper manufacturers
Smith Paper Co. produces the paper used by wallpaper manufacturers. Smith’s four-stage process includes mixing, cooking, rolling, and cutting. During September, the Mixing Department started and completed mixing for 4,405 rolls of paper. The department started but did not finish the mixing for an additional 600 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of September. Direct materials and conversion costs are incurred evenly throughout the mixing process. The Mixing Department incurred the following costs during September:

1. Prepare a production cost report for the Mixing Department for September.
2. Journalize all transactions affecting the company’s mixing process during September, including those alreadyposted.
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