Chemical Corporation Chemical Corporation produces Chemical X which is an industrial cleaner. The company has a plant in Hammond and a sales office in New Orleans. The company uses process costing (weighted average approach). The company "closes the books" at the end of each month. In the production process at the plant, several raw materials are mixed in a large vat. Then the mixture is pressured heated. The direct materials are added at the beginning of production while conversion efforts occur uniformly throughout production. For May, beginning work-in-process consisted of 5,000 physical units. The units were 40% complete regarding conversion effort. The costs assigned to units in beginning work-in- process were: $ 4,000 direct materials 2.500 conversion costs (direct labor and manufacturing overhead) $ 6,500 total During May, the company started production on an additional 25,000 units. The plant finished 26,000 units during May (each unit represents a gallon container). During the month, 20,000 units were sold for $3 per unit. Finished goods on May 1 had a zero balance. Plant costs incurred during May: $ 23,000 direct materials purchased and used 29.900 conversion costs incurred ($9.900 direct labor, $20,000 MOH) $ 52,900 total Ending work-in-process consisted of 4,000 units that were 25% complete as to conversion. The sales office in New Orleans reported the following costs for May: $10,000 employee salaries; $5,000 insurance. Required 1. Provide all financial accounting entries for May. 2. Prepare GAAP income statement for May. 3. Determine the value of ending W-I-P and ending Finished Goods