A$-$Winery produces bottled wines for the hospitality industry in a four$-$stage process $-$Pumping, Filtration, Filling and

Capping. After leaving the Capping Department, the bottled wines are packaged and sent to the Finished Goods

warehouse for shipment to customers.

The following data relates to the Filling Department for the month of June during which $4,000$ bottled wines valued at

$$2,200,000$ were transferred from the Filtration Department to the Filling Department.

Other production costs incurred during the month are summarized as

follows:

Direct Materials Added

Direct Manufacturing Wages

Manufacturing Overhead

Process inspection occurs during the process and normally no losses are expected at this stage. However, during the

month $10\%$ of the bottled wines transferred into the Filling Department were rejected at inspection. Rejected units from

this department are sold as scrap at $$750$ per bottle.

These units had reached the following degree of completion:

Transfer from Filtration $100\%$

Direct material added $80\%$

Conversion costs $,50\%$

During June $2,800$ bottled wines were completed and transferred to the Capping Department.

Work$-$in$-$progress at the end of June had reached the following degree of completion:

Transfer from Filtration

Materials added

Conversion costs

$100\%$

$60\%$

$40\%$

Materials added and conversion costs are incurred uniformly throughout each process.

There were no incomplete units in the Filling Department at the beginning of the period.

Required:

i$)$ Prepare a statement of equivalent production to determine the equivalent units for direct materials $($From Filtration &

Direct Material Added$),$ and conversion costs and the cost per equivalent unit for direct materials and conversion costs.

ii$)$ Compute the:

total cost of the bottled wines filled and transferred out of the Capping Department

cost of the unexpected losses

cost of ending work in process inventory in the Filling Department

iii$)$ Post all transactions to the Work in Process Inventory $-$ Filling Department T$-$account. What is the ending balance?

iv$)$ Prepare the journal entries for the:

assignment of direct materials, direct labour incurred, and the manufacturing overhead applied to the Filling Process

cost of the bottles completed and transferred out to the Capping Department.

v$)$ Given that $40\%$ of the unexpected losses were because of pilferage, prepare the abnormal loss statement, clearly

showing A$-$Winery's true loss associated with the Filling Department