Do not give answer in image Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. Themolding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removesthe plastic frame from the mold and strips the edges of the frames of extra plastic.The following information is available for the month of January:Work-in-Process InventoryMolding departmentFinishing departmentJanuary 1Costs of ProductionMolding departmentFinishing departmentQuantity(pounds)None5,000CostDirectMaterials$ 510,000$ 18,000January 31Quantity(pounds)None2,000The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end ofJanuary. Costs of production for January follow:Conversion$ 120,000126,910Cost?Required1. Prepare a production cost report for the molding department.2. Prepare a production cost report for the finishing department.The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Prepare a production cost report for the finishing department. (Round "Cost per EU" answers to 2 decimal places. Negative amounts should be indiminus sign.)Finishing DepartmentInput:Beginning WIPDirect materialsConversionUnits started or trans-inTotal to account forOutput:Units finished or trans-outEnding WIPDirect materialsConversionTotal accounted forTotal equivalent unitsBeginning WIPCurrent costsTotalDivide by equivalent unitsFIFO Cost per EUFinished goodsPrior period costs in Beginning WIPCurrent period cost to complete Beg WIPDirect MaterialsConversionUnits started and finishedTotalEnding WIPTrans-inDirect materialsConversionTotal costs accounted for$$Production InformationPhysicalUnits5,000✔0✓0✔50,000✔55,00053,000✔2,000✔0✔055,000Trans-inCompletion Percentage53,0000✓40 %100 %Unit Cost DeterminationMaterialsConversion3,000100 %48,00040 %630,000✔630,000 $50,000✔12.60 $ 0.00 $0✔0 $0✓unitsEquivunitsEquivunits2,000units100%0%40 %51,800✔Transferred-in Costs$2.45 $$0✔0✓50,000✔0✔18,000✔126,910✔ 756,910126,910 $ 774,910Total50,0000✔Completedand Trans-Out0✔0✔15.0518,00000X0xFIFO Equivalent UnitsDirectMaterials18,000 $0✔0✔0✔0✔0✔Cost AssignmentEndingWork inProcess0✔0✔00✔0✔25,200✔Conversion$$0✓1,960 ✓27,160 $0✓(2,000) ✔0✔0✔53,000✔0✔800✔51,800Total0018,000025,20001,96045,160

Process costing:Process costing refers to the costing method used in ascertaining the cost under…

Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: Work-in-Process Inventory Molding department Finishing department January 1 Quantity (pounds) None 5,000 Cost Direct Materials $ 510,000 $ 18,000 January 31 Quantity (pounds) None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Cost Conversion $ 120,000 126,910 ? Costs of Production Molding department Finishing department The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department.