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 63,000 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 (spollage) 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 conversion costs for the reacting department for beginning and ending inventory is 30% and 40% respectively. Work-in-Process for the two departments is as follows. Mixing Department (Ballons) 39,000 18,000 Beginning work-in-process units Ending work-in-process units Normal spoilage (lost gallons) Costs in the mixing department: Reacting Department (Ballons) 13,000 10,600 2,200 Materials Conversion Beginning work-in-process $ 56,700 $ 282,400 Current costs 288,594 989,356 Transferred in beginning Work-in-Process costs are $242.226, and conversion costs in the reacting department are as follows: Beginning work-in-process Current costs Conversion $ 412,620 1,237,860 $1,650,480 Required: 1. Prepare the production cost report for the mixing department. 2. Prepare the production cost report for the reacting department. Benoit Chemical company (BCC) Production Cont Report Production Information Weighted Average Equivalent Units Physical Completion Direct Units Parcentage Conversion Materials Input: Beginning WIP 39,000 Direct materials 100 % Conversion 60 % Units started 63,000 Total to account for 102,000 Output: Units finished (units to account for - ending WIP) B4,000 100 % 84,000 84 000 Ending WIP 18,000 Direct materials 100% 18,000 Conversion 60 9 10.800 Total accounted for 102.000 Total equivalent units 102,000 94.800 >> > >> Unit Cost Determination Direct Conversion Materials 56,700 232.100 Total Beginning WIP 339 100 MYMUILU S Beginning WIP Current costs Total Divide by equivalent units WTAVG cost per EU Unit Cost Determination Direct Materials Conversion Total 56,700 $ 282,400 s 339,100 288,594 989,356 1,277 950 345,294 $ 1,271,756 $ 1,617,050 102,000 94 800 3.385 IS 13 415 $ 16.800 $ IS Cost Assignment - Weighted Average Units Complete and Trans- Out S 1,411,232 Units in Ending WIP Total 84,000 18,000 S 1,411,232 Finished goods Ending WIP Direct materials Conversion Total manufacturing costs accounted for 60,934 144,884 205 818 60.934 & 144 884 $ 1.617,050 $ 1.411,232 S Benoit Chemical Company (BCC) Production Cost Report Production Information Physical Completion Trans-in Direct Units Percentage Costs Materials 13,000 100 % 0 % Conversion 30 % 100 % 84,000 97,000 84,200 2,200 100 % 0 Beginning WIP Trans-in Direct materials Conversion Units started or trans in Total to account for Units finished Normal spoilage Ending WIP Trans-in Direct materials Conversion Total accounted for Total equivalent units 84 200 >> 84200 2,200 100% 0 2.200 10,600 10,600 100 % 0 % 0 40 % 4,240 97,000 97.000 0 90,640 Trans-in Total Beginning WIP Current costs Unit Cost Determination Direct Conversion Materials 0 $ 412,620 0 1,237 860 $ 242,226 $ 1,237 860 % S $ 1,480,086 97,000 $ 2.497 $ 654,846 2,475.720 % $ 3,130,566 Total 0 $ 1,650,480 Divide by equivalent units WTAVG cost per EU 90,640 18 213 s s 20.710 % Cost Assignment - Weighted Average Gallons Units Complete and Trans- Out $ 1,743,475 45,554 Units in Ending WIP Total Finished goods Normal spoilage Ending WIP Trans-in Direct materials Conversion Total manufacturing costs accounted for 84,200 2,200 10.600 10.600 45,554 26,470 X 26.470 % 0 0 0 4,240 $ 1,789 029 77 207 103,677 77 207 149 231 s