The We-Make-It-You-Bake-It Dough Company manufactures frozen pizzas. There are two processing departments. Inspection for spoiled units takes place as follows: mlo8

Required:
For both departments, prepare an equivalent production schedule for both direct materials and conversion costs assuming a fifo costing method is used.

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Department 1: At the end of the process Department 2: 50% of the way through the process The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which spoilage occurs. December's records showed the following data: Department 1 Department 2 Units: Beginning work-in-process inventory: 100% direct materials, 60% conversion costs 100% direct materials, 30% conversion costs Units started in process 19,000 24,000 28,000 Units received from preceding department Units transferred to finished goods inventory Ending units in process: 40,000 60,000 100% direct materials, 85% conversion costs 4,500 100% direct materials, 62% conversion costs 3,000 Spoiled units: Normal 2,000 500 Abnormal 500 500 Additional Information: Direct materials are added at the beginning of the process in both departments. Department 2's direct materials do not increase the number of units in production. Conversion costs are incurred evenly throughout both processes.