Standard Manufacturers produces steel doors for the furniture industry in a four-stage process Cutting, Moulding, Welding and Assembly. The following data relates to the Welding Department for the month of January during which 20,000 doors valued at $65.50 each were transferred from the Moulding Department to the Welding Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Manufacturing Overhead $391,600 $638,000 $307,400 Normal losses are estimated to be 2% of input during the period. Inspection takes place during the processing operation, at which point damaged doors are separated from good doors and sold as scrap to local furniture manufacturers at $85 each. At inspection, 2,000 doors were rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding Direct material added Conversion costs 100% 40% 20% Work-in-progress at the end of January was 4,000 doors and had reached the following degree of completion: Transfer from Moulding Direct material added Conversion costs 100% 80% 50% (a) Direct materials added and conversion costs are incurred uniformly throughout the process. Required: Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: ⚫ total cost of the doors completed and transferred out of the Assembly Department ■ cost of the unexpected losses ■ cost of ending work in process inventory in the Welding Department (3 marks) (c) Complete the Work in Process Inventory - Welding Process T-account, clearly showing the ending balance. (5 marks) (d) Prepare the journal entries for the: ▪ assignment of direct materials, direct labour incurred, and the manufacturing overhead applied to the Welding Process *cost of the units completed and transferred out to the Assembly Process (e) (5 marks) Given that 30% of the unexpected losses were because of pilferage, prepare the abnormal loss statement, clearly showing Standard Manufacturers true loss associated with the Welding Department (2 marks) Aubergine is a manufacturer of contemporary cases for tablets. The business uses a perpetual inventory system and has a highly labour-intensive production process, so it applies manufacturing overhead based on direct labour hours. Any overhead variance is deemed to be immaterial and therefore closed out to Cost of Goods Sold. Aubergine's pre-determined overhead application rate for 2024 was computed from the following data: Total estimated factory overheads $4,200,000 Total estimated direct labour hours 35,000 During the first month of 2024, the business recorded the following transactions. i) Purchased $500,000 worth of materials on account. Separately, Aubergine paid a $3,540 bill for freight in. ii) Incurred manufacturing wages of $1,065,000 iii) Issued direct materials and used direct labour in manufacturing Job # | Direct Materials | Direct Labour | Direct Labour Hours A-141 A-142 A-143 A-144 $100,000 81,000 90,000 150,000 $220,000 190,000 205,000 290,250 1,200 1,000 1,100 1,800 iv) Issued indirect materials to production, $80,000 v) Charged indirect manufacturing wages to production, $159,750 vi) Depreciation expense on factory equipment used on the different jobs, $300,000 vii) Other overhead costs incurred on jobs A-141 to A-144 amounted to $112,750 viii) Applied factory overhead to the various jobs using the pre-determined factory overhead rate. ix) Finished Jobs A-141-A-143 and transferred to the finished goods inventory account x) Shipped Job A-141 and A-142 and billed customers at a margin of 25% on cost. Required: a) Compute Aubergine's predetermined manufacturing overhead rate. b) Calculate the total manufacturing cost for each job. (1 mark) (3 marks) (9 marks) c) Using the total figures, record the above transactions in the general journal. d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and state the balance on the account before closing the account. Show the journal entries necessary to dispose of this variance. (3 marks) e) What is the balance in the Cost of Goods Sold account after the adjustment? (1½ marks) f) Calculate the gross profit earned by Aubergine for the month. (2 marks) g) Post the appropriate entries to Work in Process Inventory Control account & determine the account balance on January 31, the end of the month. (2½ marks) h) State and explain three (3) differences between a job costing system and a process costing system. (3 marks)