Carlton Chemicals Company produces a single product in two departments, Distillation and Refining. Unrefined chemicals are mixed and heated in the Distillation Department. Then the product is transferred to the Refining Department, where it is heated, filtered, and put into drums. Because of the heat applied to the product in both departments, some production shrinkage occurs. All shrinkage is viewed by management as part of the normal production process and is not measured. Data for June operations are:

Required:
(1) Assuming the company uses fifo process costing, prepare a June cost of production report for each department.
(2) Assuming the company uses separate general ledger accounts for each production department's work in process inventory, prepare the general journal entry to record the transfer of cost out of each department during June.

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Distillation Refining Units in beginning inventory: Distillation Department (100% materials, 20% 4,000 labor and overhead). Refining Department (100% materials, 50% labor and overhead) this period. Refining Department this perio.. Distillation Department (100% materials, 80% 2,000 Units started in process in Distillation Department Units transferred from Distillation Department to Units transferred to Finished Goods Inventory Units in ending inventory 16,000 14,000 4,000 12,000 labor and overhead. Refining Department (100% materials, 30% 2,000 labor and overhead.. 2,000 Cost in beginning inventory $3,500 240 160 900 Cost from preceding department Labor Factory overhead 96 480 Cost added during the current period: Materials.... Labor Factory overhead 10,800 1,480 7,400 1,440 1.740 10,440