World Class Steaks is a meat processing firm based in Texas. It has two departments: preparation $($prep$)$ and shipping. For the prep department conversion costs are added evenly during the process and the first direct material, meat, is added at the beginning of the process. A second material, seasoning, is added at $80\%$ point in the process. All completed units are transferred to the shipping department. In the shipping department, an additional material, packaging, is added to the product at the $25\%$ point in the process. Completed units are transferred to finished goods. Additional information for both departments is presented below:

Preparation Department

Beginning Inventory contained $16,000$ units $(50\%$ complete$),$ meat $-$ $$9,500$ and conversion $$6,300.$

Units started were $44,000$; Units completed were $32,000.$ Ending Inventory is $60\%$ complete with respect to conversion.

Within the Preparation Department, the following transactions occurred:

$1.$ Meat purchased for $$210,000$ on account. Seasoning purchased for $$30,000$ for cash.

$2.$ $$172,000$ of meat was put into process; seasoning used was $$25,000.$

$3.$ Direct labor incurred was $$94,000$; Manufacturing Overhead incurred was $$74,000.$

$4.$ Conversion is applied to production.

$5.$ Completed product was transferred to the Shipping Department.

Shipping Department

Beginning Inventory contained $18,000$ units $(75\%$ complete$),$ transferred in $$90,000$ packaging $$17,000$ conversion $$45,000$

Ending Inventory contained $22,000$ units $(30\%$ complete$).$

Within the Shipping Department, the following transactions occurred:

$1.$ Packaging was purchased for $$28,000.$

$2.$ $$23,000$ of packaging was used.

$3.$ Direct labor incurred was $$61,000$; Manufacturing Overhead incurred was $$54,000.$

$4.$ Conversion is applied to production.

$5.$ Completed product was transferred to Finished Goods.

Finally,

$1.26,000$ packages were sold for $$30$ each.

$2.$ Selling and Administrative expense is $$141,000$ paid for with cash.

REQUIRED:

$1.$ Prepare a production cost worksheet assuming weighted average for the Preparation Department. $($Round unit costs to three decimal points for cost per Equivalent Unit, if necessary$)$

$2.$ Prepare a production cost worksheet assuming FIFO for the Shipping Department. $($Round unit costs to three decimal points for cost per Equivalent Unit, if necessary$)$

$3.$ Prepare an Income Statement for World Class Steaks.

$4.$ Journalize all entries.