1. Information for Chaucer, Ltd. in July for the Prep Department, the first stage of the production cycle, is as follows: (45 points/ 5 points each) Factory Materials Labor Overhead Beginning work in process $ 8,100 $3,200 $3,000 Costs incurred during July 25,650 9,400 4,000 Total costs $33,750 $12,600 $7,000 Goods completed Ending work in process 60,000 units 15,000 units All material costs are added at the beginning of the process. The ending work in process is two- thirds complete as to conversion costs. The average cost method is used to distributed the total production costs. (1) What are the total production costs to be accounted for? (2) What is the equivalent production (EPU) units for materials, labor, and factory overhead, respectively? (3) What is the unit cost for materials, labor, and factory overhead? (4) What is the cost of units completed? (5) What is the cost of ending work in process? 2. Bradford Company has two service departments, Human Resources and Janitorial, and two production departments, Cutting and Glazing. The following data have been estimated for next year's operations: Department: Direct Charges Number of Employees Square Footage Human Resources $360,000 15,000 Janitorial $280,000 8 20,000 Cutting $428,0001 42 25,000 Glazing $562,000 40 35,0001 Requirements: (1) Distribute the service department costs using the sequential distribution method. Distribute the Human Resources Department first. (24 points/3 points each) (2) Prepare the journal entries to distribute the costs of the service departments to the production departments given the results of your calculations. (16 points/8 points each) 3. Nate Company manufactures Products A and B from a joint process that also yields a by-product, X. Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products. Additional information is as follows: (19 points) Product ABX Total Units produced 15,000 9,000 6,000 30,000 Joint costs ? ? ? $200,000 Sales value at split off $392,000 $168,000 $20,000 $580,000 (1) Assuming that joint product costs are allocated using the relative sales value at split-off approach, what was the joint cost allocated to Products A and B? (14 points) (2) Prepare the journal entry to transfer the finished products (Products A and B) to separate inventory accounts. (8 points) (3) Assuming the sales value of X is stable, prepare the journal entries to: (13 points) (a) place the by-product in stock (b) record the sale of 3,000 units for $11,500 on account