(Solution) - Felicia Manufacturing Company sells a single model of an auxiliary -(2025 Original AI-Free Solution)

Paper Details

Felicia Manufacturing Company sells a single model of an auxiliary fuel tank which is manufactured in two producing departments, Fabricating and Finishing. Each fuel tank is cut from steel, shaped, and welded to its basic form in the Fabricating Department. Then the tanks are transferred to the Finishing Department, where they are coated with a sealant and painted. Data related to August operations are:

Required:
(1) Assuming the company uses a process cost system with a fifo cost flow assumption, prepare a cost of production report for each department for August.
(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 August and to record the transfer of units from Fabricating to Finishing and from Finishing to Finished Goods Inventory.