I cannot figure out how to do this two department problem
Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. Patterson uses the weighted average method for process costing. January 1, 2019, inventory account balances are as follows:
|Work in process- Department 1 (3,000 units, 30% complete)
| Direct materials
| Conversion costs
|Work in process - Department 2 (3550 units, 40% complete)
|Finished goods inventory (2,000 units @ $16
During January, the following transactions occurred:
- Purchased materials on account, $90,000
- Placed $84,000 of materials into process in Department 1. This $84,000 represents 24,000 units of materials.
- Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor to Department 2, and $51,000 of indirect labor to Manufacturing Overhead.
- Incurred other actual manufacturing overhead costs, $81,000. (Credit Other Accounts)
- Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to Department 2.
- Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 20% completed with respect to the conversion costs.
- Transferred 26,000 completed units from Department 2 to finished good inventory. The 2,550 units remaining in Department 2 were 70% completed with respect to conversion costs.
- Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures for the finished goods inventory.
Questions (see attached screenshot).
b.) Prepare a product cost report (with its supporting calculations) for Department 1
c.) Prepare a product cost report (with its supporting calculations) for Department 2