World Class Steaks is a meat processing firm based in Texas. It has two departments: preparation rep) and shipping. For the prep department conversion costs are added evenly during the proces:s and the first direct material, meat, is added at the beginning of the process. A second material, seasoning, is added at 90% 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 20% point in the process. Completed units are transferred to finished goods. Additional information for both departments is presented below: Preparation Department Beginning inventory contained 7,200 units (45% complete), meat-$10,632 and conversion $2,778 Units started were 60,000: Units completed were 49,200. Ending Inventory is 70% complete with respect to conversion Within the Preparation Department, the following transactions occurred 1. Meat purchased for $125,000 on account. Seasoning purchased for $15,000 for cash 2. $111,000 of meat was put into process; seasoning used was $12,000 3. Direct labor incurred was $50,000; Manufacturing Overhead incurred was $39,664 4. Conversion is applied to production. 5. Completed product was transferred to the Shipping Department. Shipping Department Beginning inventory contained 25,200 units (70% complete), transferred in $93,240 packaging $10,000, conversion $46,950 Ending inventory contained 16,800 units (25% complete) Within the Shipping Department, the following transactions occurred 1. Packaging was purchased for $15,250 2. $11,250 of packaging was used 3. Direct labor incurred was $40,000; Manufacturing Overhead incurred was $41,690 4. Conversion is applied to production. 5. Completed product was transferred to Finished Goods Finally, 1. 35,000 packages were sold for $6 each 2. Selling and Administrative expense is $40,000 REQUIRED 1. Prepare a production cost worksheet assuming FIFO for the Preparation Department. (Round to FOUR decimal points, if necessary) Prepare a production cost worksheet assuming weighted average for the Shipping Department. (Round to FOUR decimal points, if necessary) Prepare an Income Statement for World Class Steaks Journalize all entries 2. 3. 4