Chrome Accessories uses four departments to produce handles for kitchen cabinets: F orming quires mixing the raw materials, Moulding, Spraying and Drying. After leaving the Drying Department, the handles are packaged and sent to the Finished Goods warehouse for shipment to retail outlets The following data relates to the Spraying Department for the month of Jun During the month, 2,000 handles valued at $275 each were transfered from the Molding Department to the Spraying Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Manufacturing Overhead $171,000 $425,600 $205,200o Process inspection occurs during the process and normally no losses are expected at this stage However during the month 200 handles were rejected at inspection. Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree completiorn Transfer from Molding Direct material added Conversion costs 100% 80% 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Molding 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 Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding &Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department . cost of the unexpected losses (c) Post all transactions to the Work in Process Inventory - Spraying Department T-account. (d) Prepare the journal entries for the use of total direct materials, direct labour incurred (e) Given that 25% of the unexpected losses were as a result of pilferage, calculate Chrome . cost of ending work in process inventory in the Spraying Department (3 marks) What is the ending balance? manufacturing overhead applied and the cost of the units completed and transferred out to (5 marks) the Drying Process (5 marks) (2 marks) Accessories true loss for the Spraying Department