Kindly assist with the following:a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (from Process 1 & Direct material added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs.(b) Calculate:Total cost of units completed and transferred to Finished Goods Inventory.Cost of abnormal lossesCost of ending work-in-process inventory in Process 2.c) Prepare Better Choice's Work-in-Process Inventory -Process 2 T-account, clearly showing the ending balance. Better Choice Foods makes a single product using two processes. Quality control check takes place duringthe process, at which point, rejected units are separated from good units.The following details relate to production for the month of April 20X9, for Process 2.(i)Work-in-process, beginning inventory:-0-(ii)Transfer from Process 1: 15,000 units valued at $51.40 each(iii)Other manufacturing costs incurred during April:Direct material added$513,000$365,000$211,000Direct labourManufacturing overhead(iv)Normal losses were estimated to be 5% of input during the period. Losses from Process 2 aredeemed to be scrap, and sold at $40 per unit.(v)At inspection 1,750 units were rejected as scrap. These units had reached the following degree ofcompletion:Input material100%Direct material added50%Conversion costs30%(vi)12,000 units were completed and transferred to Finished Goods Inventory.(vii)Work-in-process at the end of April had reached the following degree of completion:Input material100%Direct material added80%Conversion costs40%

Step 1 Equivalent units are calculated by multiplying the number of physical (or actual) units on…

Answered: ndly assist with the following: a)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kindly assist with the following:

a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (from Process 1 & Direct material added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs.

(b) Calculate:

Total cost of units completed and transferred to Finished Goods Inventory.
Cost of abnormal losses
Cost of ending work-in-process inventory in Process 2.

c) Prepare Better Choice's Work-in-Process Inventory -Process 2 T-account, clearly showing the ending balance.

Better Choice Foods makes a single product using two processes. Quality control check takes place during
the process, at which point, rejected units are separated from good units.
The following details relate to production for the month of April 20X9, for Process 2.
(i)
Work-in-process, beginning inventory:
-0-
(ii)
Transfer from Process 1: 15,000 units valued at $51.40 each
(iii)
Other manufacturing costs incurred during April:
Direct material added
$513,000
$365,000
$211,000
Direct labour
Manufacturing overhead
(iv)
Normal losses were estimated to be 5% of input during the period. Losses from Process 2 are
deemed to be scrap, and sold at $40 per unit.
(v)
At inspection 1,750 units were rejected as scrap. These units had reached the following degree of
completion:
Input material
100%
Direct material added
50%
Conversion costs
30%
(vi)
12,000 units were completed and transferred to Finished Goods Inventory.
(vii)
Work-in-process at the end of April had reached the following degree of completion:
Input material
100%
Direct material added
80%
Conversion costs
40%

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