Exercise 7-7 NORMAL/ABNORMAL LOSS - FIFO The firishing department for Puno Company for the month of June reported the following: Costs: Work in Process, beg. Cost from Preceding Department Materias P12.000 8,400 13,680 Conversion Costs Costs This Department Materias 518,000 940,000 740,000 Conversion Costs Cost from Preceding Dep't This Month Quantities Work in Process, beg. Transferred in from prior department Transferred out to next department 1,000 36.800 34,500 200 3,000 Beg 100% Normal Lost Units Abnormal Lost Units Percentage of completion of Work in Process Materials End Conversion Cost The normal spoilage is discovered at the fime of final inspection of the units as they leave the department and are transterred to finished goods. it is therefore assumed that the units have been fuly processed in the Finishing Department. Prepare al journal entries necessary to record the production of the Finishing Department. S0% 60%

Classify the following costs as typically direct (D) or indirect (I): Project staff Audit and legal Utilities Rent Raw materials Training on equipment Project supplies Labor Administrative staff Miscellaneous office supplies Quality assurance IT department Scheduled maintenance Shared software packages

Prepare an REA model depicting the issuance of raw materials into the manufacturing process. Identify the resource, event, and agent entities. Show the cardinalities in the associations between entities.

Explain the ethical considerations to be taken care of while maintaining cost records.