Benoit Chemical Company (BCC) produces a variety of specialty chemicals used in the pharmaceutical industry and construction industry. BCC spends almost 20% of its net revenues on research, product development, and customer development to achieve its reputation as a high-quality producer of chemicals, a reliable supplier, and a great provider of customer service. BCC has a small number of large customers, each of which typically has one or more large orders being processed at BCC at any given point in time. These orders are typically completed over 1 to 3 months or longer. BCC uses job costing to keep track of total job costs over the duration of each order and process costing to keep track of monthly costs, department by department. The processing departments include mixing, reacting (in which chemicals are heated and sometimes vacuum is applied), cleaning, inspecting, and packaging. Much of the total product cost is accumulated in the first two processes, mixing and reacting. The following information is for activity and costs in the first two departments during the current month. The mixing department started 62,000 gallons this month. No spoilage is measured in the mixing department, but a careful measurement of the loss of material in reacting is taken after the completion of the reacting process. No materials are added in the reacting process. The number of gallons lost (spoilage) is considered normal spoilage and none of the costs of the spoiled units can be recovered. BCC uses the weighted average method for process costing. Percentage completion for conversion costs is 60% in the mixing department for both beginning and ending inventory. The percentage completion for costs for the reacting department for beginning and ending inventory 30% and 40%, respectively. Work-in-Process for the two departments is as follows. Beginning work-in-process units Ending work-in-process units Normal spoilage (lost gallons) Mixing Department (gallons) 40,000 17, 500 0 Reacting Department (gallons) 16, 000 7, 800 2,300 Costs in the mixing department: Beginning work-in-process Current costs Materials $ 56, 720 288, 604 Conversion $282, 400 989, 346 Transferred-in beginning Work-in-Process costs are $242,231, and conversion costs in the reacting department are as follows: Beginning work-in-process Current costs Conversion $ 412, 630 1, 237, 890 $1,650, 520 Required: 1. Prepare the production cost report for the mixing department. 2. Prepare the production cost report for the reacting department. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Benoit Chemical Company (BCC) Production Cost Report Production Information Weighted Average Equivalent Units Physical Completion Direct Conversion Units Percentage Materials Input: Beginning WIP Direct materials 40,000 100 % Conversion 60 % Units started 62,000 102,000 Total to account for 84,500 84,500 84,500 Output: Units finished (units to account for - ending WIP) Ending WIP Direct materials 17,500 100 % 17,500 Conversion 60 % 10,500 Total accounted for 102,000 Total equivalent units 102,000 95,000 Beginning WIP $ Unit Cost Determination Direct Conversion Total Materials 56,720 $ 282,400 $ 339,120 288,604 989,346 1,277,950 345,324 $ 1,271,746 $ 1,617,070 Current costs Total $ 102,000 Divide by equivalent units WTAVG cost per EU 95,000 13.387 co 3.386 $ $ 16.773 Cost Assigned - Weighted-Average Units in Ending WIP Total Units Complete and Trans-Out $ 1,417,262 x $ 1,417,262 x Finished goods Ending WIP Direct materials 84,500 17,500 Conversion Total manufacturing costs accounted for 59,247 x 59,247 X 140,561 X 140,561 X 199,808 $ 1,617,070 $ 1,417,262 $ Benoit Chemical Company (BCC) Production Cost Report Production Information Physical Completion Trans-in Direct Units Percentage Costs Materials 16,000 % 0 % 0 0 Conversion Beginning WIP 100 Direct materials 0 Conversion 30 % 0 0 0 Units started 100 % Total to account for 84,500 100,500 90,400 2,300 100 % 0 >> 90,400 2,300 0 90,400 2,300 7,800 % Units finished Normal spoilage Ending WIP Direct materials 0 7,800 100 % OOOOO 0 0 0 % 0 0 0 Conversion 40 % 0 0 3,120 100,500 Total accounted for Total equivalent units 100,500 0 95,820 Trans-in Unit Cost Determination Direct Conversion Materials 0 $ 412,630 Total $ Beginning WIP Current costs 654,861 2,406,608 0 1,237,890 $ 242,231 $ 1,417,262x $ $ 1,659,493 100,500 Total 0 $ 1,650,520 $ 3,061,469 95,820 Divide by equivalent units WTAVG cost per EU $ 2.410 X $ 0.000 $ 17.225 $ 31.144 X Cost Assigned - Weighted-Average Gallons Units in Ending WIP Total Units Complete and Trans- Out $ 2,815,392 X 71,631 X 71,631 X Finished goods Normal spoilage Ending WIP Trans-in 90,400 2,300 7,800 7,800 128,796 X 128,796 X Direct materials 0 0 0 Conversion $ 3,120 45,650 X 45,650 X 174,446 $ 246,077 Total manufacturing costs accounted for $ 2,887,023 $ Benoit Chemical Company (BCC) produces a variety of specialty chemicals used in the pharmaceutical industry and construction industry. BCC spends almost 20% of its net revenues on research, product development, and customer development to achieve its reputation as a high-quality producer of chemicals, a reliable supplier, and a great provider of customer service. BCC has a small number of large customers, each of which typically has one or more large orders being processed at BCC at any given point in time. These orders are typically completed over 1 to 3 months or longer. BCC uses job costing to keep track of total job costs over the duration of each order and process costing to keep track of monthly costs, department by department. The processing departments include mixing, reacting (in which chemicals are heated and sometimes vacuum is applied), cleaning, inspecting, and packaging. Much of the total product cost is accumulated in the first two processes, mixing and reacting. The following information is for activity and costs in the first two departments during the current month. The mixing department started 62,000 gallons this month. No spoilage is measured in the mixing department, but a careful measurement of the loss of material in reacting is taken after the completion of the reacting process. No materials are added in the reacting process. The number of gallons lost (spoilage) is considered normal spoilage and none of the costs of the spoiled units can be recovered. BCC uses the weighted average method for process costing. Percentage completion for conversion costs is 60% in the mixing department for both beginning and ending inventory. The percentage completion for costs for the reacting department for beginning and ending inventory 30% and 40%, respectively. Work-in-Process for the two departments is as follows. Beginning work-in-process units Ending work-in-process units Normal spoilage (lost gallons) Mixing Department (gallons) 40,000 17, 500 0 Reacting Department (gallons) 16, 000 7, 800 2,300 Costs in the mixing department: Beginning work-in-process Current costs Materials $ 56, 720 288, 604 Conversion $282, 400 989, 346 Transferred-in beginning Work-in-Process costs are $242,231, and conversion costs in the reacting department are as follows: Beginning work-in-process Current costs Conversion $ 412, 630 1, 237, 890 $1,650, 520 Required: 1. Prepare the production cost report for the mixing department. 2. Prepare the production cost report for the reacting department. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Benoit Chemical Company (BCC) Production Cost Report Production Information Weighted Average Equivalent Units Physical Completion Direct Conversion Units Percentage Materials Input: Beginning WIP Direct materials 40,000 100 % Conversion 60 % Units started 62,000 102,000 Total to account for 84,500 84,500 84,500 Output: Units finished (units to account for - ending WIP) Ending WIP Direct materials 17,500 100 % 17,500 Conversion 60 % 10,500 Total accounted for 102,000 Total equivalent units 102,000 95,000 Beginning WIP $ Unit Cost Determination Direct Conversion Total Materials 56,720 $ 282,400 $ 339,120 288,604 989,346 1,277,950 345,324 $ 1,271,746 $ 1,617,070 Current costs Total $ 102,000 Divide by equivalent units WTAVG cost per EU 95,000 13.387 co 3.386 $ $ 16.773 Cost Assigned - Weighted-Average Units in Ending WIP Total Units Complete and Trans-Out $ 1,417,262 x $ 1,417,262 x Finished goods Ending WIP Direct materials 84,500 17,500 Conversion Total manufacturing costs accounted for 59,247 x 59,247 X 140,561 X 140,561 X 199,808 $ 1,617,070 $ 1,417,262 $ Benoit Chemical Company (BCC) Production Cost Report Production Information Physical Completion Trans-in Direct Units Percentage Costs Materials 16,000 % 0 % 0 0 Conversion Beginning WIP 100 Direct materials 0 Conversion 30 % 0 0 0 Units started 100 % Total to account for 84,500 100,500 90,400 2,300 100 % 0 >> 90,400 2,300 0 90,400 2,300 7,800 % Units finished Normal spoilage Ending WIP Direct materials 0 7,800 100 % OOOOO 0 0 0 % 0 0 0 Conversion 40 % 0 0 3,120 100,500 Total accounted for Total equivalent units 100,500 0 95,820 Trans-in Unit Cost Determination Direct Conversion Materials 0 $ 412,630 Total $ Beginning WIP Current costs 654,861 2,406,608 0 1,237,890 $ 242,231 $ 1,417,262x $ $ 1,659,493 100,500 Total 0 $ 1,650,520 $ 3,061,469 95,820 Divide by equivalent units WTAVG cost per EU $ 2.410 X $ 0.000 $ 17.225 $ 31.144 X Cost Assigned - Weighted-Average Gallons Units in Ending WIP Total Units Complete and Trans- Out $ 2,815,392 X 71,631 X 71,631 X Finished goods Normal spoilage Ending WIP Trans-in 90,400 2,300 7,800 7,800 128,796 X 128,796 X Direct materials 0 0 0 Conversion $ 3,120 45,650 X 45,650 X 174,446 $ 246,077 Total manufacturing costs accounted for $ 2,887,023 $