MARINA Co. Producing electric stoves through 2 production departments, namely department I and department II. The following

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Question:

MARINA Co. Producing electric stoves through 2 production departments, namely department I and department II. The following is department I data for operational activities during December 2022:

The number of units worked this month was 7,500 units with a ratio of units coming from initial inventory and new units arriving in December of 2:3.

Costs to complete beginning inventory were: Materials $203,500, Direct Labor $216,350; and FOH costs $ 200,000.

The units completed this month were 5,000 units and all of them have been transferred to the next department.

At the end of the month there were 2,000 units that had not been processed (Material 60%, Labor and FOH 40% each) and the remainder were units damaged due to worker negligence (M 100%, L and FOH 75% each).

Costs added in the process this month are as follows: Materials $500,000; Labor $ 290,000 ; and FOH $281,650.

Requested:

1. Prepare the Department I Cost of Production Report for December 2022 using the AVERAGE method! (If there is a comma, use 2 numbers after the comma and include the Equivalent Unit calculation).

2. Make the necessary journals.