Hadenville Tool Company uses a process cost system with a fifo cost flow assumption to account for the production of its only product, which is manufactured in two departments. Units are started in the Fabricating Department and then transferred to the Finishing Department, where they are completed. Units are inspected at the 60% stage of conversion in the Fabricating Department and at the end of the process in the Finishing Department. Materials are added at the beginning of the process in both departments. Units of product spoiled in Fabricating have no salvage value; however, units found to be spoiled at the end of the Finished process have a salvage value of $1 each. Good units are transferred from the Finishing Department to Finished Goods Inventory at cost, and spoiled units are transferred to Spoiled Goods Inventory at their salvage value. The unrecoverable cost of spoilage in both departments is viewed by management as an internal failure cost and charged to Factory Overhead Control. Data for April are:

Required:
(1) Prepare a cost of production report for each department for April.
(2) Prepare the general journal entry to record the transfer of cost out of each department during April. Assume the company maintains separate work in process inventory accounts for each manufacturing department.

Fabricating Finishing Units in beginning inventory Fabricating Department (100% materials, 70% labor and overhead)....u.. 2,000 Finishing Department (100% materials, 40% labor and overhead)... 3,000 Units started in process in Fabricating Department this period 9,000 Units transferred from Fabricating Department to Units transferred to Finished Goods Inventory Units spoiled in process this period. 9,000 9,000 9,900 100 500 Units in ending inventory Fabricating Department( 100% materials, 40% 1,500 Finishing Department (100% materials, 60% labor and overhead). 2,000 Cost in beginning inventory:. Cost from preceding department Materials . Labor $1,900 340 1.020 $6,100 3,500 520 780 Factory overhead Cost added during the current period: Materials o $9.180 $10.80 Labor Factory overhead 2,125 6,375 4,000 6,000