Husky Ltd. manufactures toys using a continuous production process that flows through two departments: Forming and Finishing. In the forming department, various components are built and are transferred to the finishing department. In the finishing department, those components are assembled into Huskys final product and once finished, are transferred to Huskys Finished Goods Inventory.

Husky uses the FIFO method of accounting for costs.

In the Forming Department, Direct Materials are added at the start o f the process, inspection occurs at the end of the process. For the Forming Department, spoilage of up to 3 % of Good Units Completed is considered normal. Any amount of spoilage greater than that should be considered abnormal.

In the Finishing Department, inspection takes place when 40% of conversion is complete. Direct materials are added at 45 % of conversion. In the finishing department, spoilage of up to 2% of good units completed is considered normal. Any amount of spoilage greater than that should be considered abnormal.

Additional information follows:

Required:

Complete a Cost of Production Worksheet for both the Forming Department and the Finishing

Department for the Month of January.

Forming Department Direct Phvsical Units Materials Conversion Work in Process January 1 25,000 $ 37,500 $ 9,000 Degree of Completion in beginning WIP Units Started in Janua Good Units Transferred Out Work In Process January 31 Degree of Completion in 100% 50% 225,000 235,000 12,000 Ending WIP 100% 60% Costs added in Janua $ 324,000 $ 174,525 Finishing Department Direct Physical Transferred In Units Materials Conversion Work in Process January 1 36,000S 79,920 3,60046,800 Degree of Completion in beginning WIP 65% Units Transferred in from Forminga in Janua Good Units Transferred Out Work In Process January 31 Degree of Completion in 240,000 20,000 Ending WIP 35% Costs added in Janua ?? $ 22,440 467,400 Forming Department Direct Phvsical Units Materials Conversion Work in Process January 1 25,000 $ 37,500 $ 9,000 Degree of Completion in beginning WIP Units Started in Janua Good Units Transferred Out Work In Process January 31 Degree of Completion in 100% 50% 225,000 235,000 12,000 Ending WIP 100% 60% Costs added in Janua $ 324,000 $ 174,525 Finishing Department Direct Physical Transferred In Units Materials Conversion Work in Process January 1 36,000S 79,920 3,60046,800 Degree of Completion in beginning WIP 65% Units Transferred in from Forminga in Janua Good Units Transferred Out Work In Process January 31 Degree of Completion in 240,000 20,000 Ending WIP 35% Costs added in Janua ?? $ 22,440 467,400