Rimirez Tool Corporation manufactures a single model of a commercial cutting tool. The product is cast from molten steel in the Casting Department, and then it is transferred to the Finishing Department, where it is ground and polished. Data related to December operations are:

Required:
(1) Assuming the company uses a process cost system with an average cost flow assumption, prepare a cost of production report for each department for December.
(2) Assuming the company maintains a separate work in process account for each of its two producing departments, prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during December and to record the transfer of units from Casting to Finishing and from Finishing to Finished Goods Inventory.

Transcribed Image Text:

Castin 1,000 Finishin 1,500 Units in beginning inventory Units started in process in Casting Department 8,000 7,500 this period 7,500 Units transferred from Casting to Finishing this period.... Units transferred from Finishing to Finished Goods this period 7,000 Units in ending inventory: Casting Department( 100% materials and 80% conversion cost) 1,500 Finishing Department (40% labor and 50% overhead) 2,000 . Cost in beginning inventory $4,785 Cost from preceding department.. Materials Labor Factory overhead $915 60 90 201 Cost added during the current period: Materials Labor Factory overhead $17,085 4,290 6,435 $2,919 3,125