BUSI 354 Midterm Review Questions Question 1 Great Canadian Industn'es uses the weighted average method of processcosting system in preparing its production-cost worksheet. The firm has 3 production departments. The problem relates to Department #2. For processing in Department #2. goods are transferred in from Department # 1. In Department #2. Direct Materials are added at til-rs:- stages: - Material A is added at the start of the process I Material B is added at the sorts completion stage. - Conversion costs are incurred uniformly throughout the process. The following gala were recorded for Department #2 in the month of Febrgggg. Units of beginning inventory 2D.l]t] 'tt: Completion of beginning workinprocess units 45% Units started 80,1300 Units completed and transferred out EQDEIU Units in ending inventory 30.0% |rt: Completion of ending workin-process units 35% W: Transferred-in costs $648300 Direct materials -r'-'t $32D.l] Direct materials B $2TD.[IUD Conversion costs $1,312.500 mom-'Io-pmess bminoing: Transferredin costs $15!].UDD Direct material A costs $ Taooo Conversion costs $124.!ZJDD Inspection takes place at the SCH-E: stage of completion with normal spoilage considered to be 10% of the good units that pass inspection. Required: 1. Prepare a schedule of equivalent units for all cost categories. 2. Compute the cost per equivalent unit for each cost category. 3. Prepare a production cost report for department 2. in good form. The report should show the distribution of costs between all categories for all costs. Your report should display the cost of goods manufactured in Department 2 for the month of February. the total amount of any abnormal spoilage and the ending balance in the workinprocess inventory account at the end of February. (No journal entries are required. You may use reasonable abbreviations. Use a minimum of 2 decimal places for unit costs and round