1. Prepare the individual cost of production report for the 3 departments for May 2020.
2. Prepare the pertinent journal entries for May 2020.
3. 

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Cool Company process a special product and has three production departments: Department 1 uses FIFO costing and adds materials at the start of the process. Inspection is done when the process is three-fourths completed, any spoilage is detected at this point. Spoilage more than 2% of the units started is considered abnormal. Department 2 uses FIFO costing and adds materials to the process as follows: 50% at 1/3 stage of completion; 10% at mid-point of processing; 20% at 2/3 stage of completion and the balance at the end of the process. Normal spoilage occurs at the start of the process. Department 3 uses weighted average costing method. In this department, addition of materials at the start of the process increases the units received from preceding department by 25%. In all three departments, conversion costs are applied evenly throughout the process. During May 2020, the following data were available: Quantity: BWIP Department 1 25,000 U, 60% Department 3 9,000 U, 2/3 complete as to CC 70,000 units ?, 2/3 to complete as to CC Department 2 20,000 U, 2/5 complete as to CC complete as to CC Started/Received 49,000 units ? ? Finished & 60,000 units 68,000 units Transferred EWIP 12,000 U, 2/3 to complete as to CC 11,000 U, 30% complete as to CC Costs: BWIP- Trans. In Materials Conversion Costs Current - Trans. In - Materials - Conversion Costs D1 P63,750 44,747 127,400 151,500 D2 P112,000 10,000 23,439 339,250* 71,920 132,930 D3 P67,405 4,500 6,000 619,359* 42,500 72,000 *This may not be the same amount determined for preceding department; ignore any difference and use this figure. Cool Company process a special product and has three production departments: Department 1 uses FIFO costing and adds materials at the start of the process. Inspection is done when the process is three-fourths completed, any spoilage is detected at this point. Spoilage more than 2% of the units started is considered abnormal. Department 2 uses FIFO costing and adds materials to the process as follows: 50% at 1/3 stage of completion; 10% at mid-point of processing; 20% at 2/3 stage of completion and the balance at the end of the process. Normal spoilage occurs at the start of the process. Department 3 uses weighted average costing method. In this department, addition of materials at the start of the process increases the units received from preceding department by 25%. In all three departments, conversion costs are applied evenly throughout the process. During May 2020, the following data were available: Quantity: BWIP Department 1 25,000 U, 60% Department 3 9,000 U, 2/3 complete as to CC 70,000 units ?, 2/3 to complete as to CC Department 2 20,000 U, 2/5 complete as to CC complete as to CC Started/Received 49,000 units ? ? Finished & 60,000 units 68,000 units Transferred EWIP 12,000 U, 2/3 to complete as to CC 11,000 U, 30% complete as to CC Costs: BWIP- Trans. In Materials Conversion Costs Current - Trans. In - Materials - Conversion Costs D1 P63,750 44,747 127,400 151,500 D2 P112,000 10,000 23,439 339,250* 71,920 132,930 D3 P67,405 4,500 6,000 619,359* 42,500 72,000 *This may not be the same amount determined for preceding department; ignore any difference and use this figure.