P6-2 Cost of production Report and Journal Entries; Increase in Quantity with Materials Added in Second Department; Fifo. Tatanach Beverage Company produces a soft drink with a fruit juice base. Fruit is mashed into a juice in the Mashing Department. The juice is then transferred to the Blending Department, where it is mixed whit carbonated water. The company uses a process cost system, with a fifo cost flow assumption, and it maintains a separate work in process account for each of its two producing departments, Mashing and Blending. Data related to September operations are: