Department 1: Units in Work-in-Process (WIP) inventory, October 1 Direct materials (steel tubing) costs Conversion costs 250 $19,750, 100% complete $16,225, 40% complete (Conversion costs in the beginning inventory are comprised of direct labor, $3,000, and overhead applied, $13,225.) Units started Units completed and transferred to Dept. 2 2,300 2,180 Spoilage units at first inspection (from units started during the fourth quarter) Current costs added/applied during the quarter: Direct materials (steel tubing) costs Direct labor costs Overhead applied to production Overhead activity measures for the quarter: Material handling: Labor-related: Heat treatment: Quality control: Painting: Units in WIP inventory, December 31 Direct materials (steel tubing) costs Conversion costs Department 2: 80 $184,000 $66,480 222 2,300 parts 5,560 direct labor hours 1,130 treatment hours ??? bikes inspected 2,180 bikes painted 222 100% complete 30% complete Units in WIP inventory, October 1 Prior department (Dept. 1) costs Direct materials (assembled components) costs Conversion costs 200 $48,600 $16,200, 70% complete $5,920, 40% complete (Conversion costs in the beginning inventory are comprised of direct labor, $1,440, and overhead applied, $4,480.) Units received from Department 1 ??? Units completed and transferred to Finished Goods Spoilage units at second inspection (from units started 2,100 during the fourth quarter) 100 Current costs added/applied during the quarter: 222 $255,600 $39,120 ??? Prior department (Dept. 1) costs Direct materials (assembled components) costs Direct labor costs Overhead applied to production Overhead activity measures for the quarter: Material handling: Labor-related: Quality control: Units in WIP inventory, December 31 Direct material (assembled components) costs Conversion costs 30,100 parts issued 3,260 direct labor hours ??? bikes inspected 222 50% complete 30% complete The production record for the fourth quarter of 2016 indicated that the spoilage units discovered at the first inspection point in Department 1 were considered normal, while those at the second inspection point in Department 2 were considered abnormal spoilage. The finished goods inventory of Tourist bicycles on October 1 consisted of 250 bikes with a total cost of $107,500. During the fourth quarter, 2,030 bikes were sold at 130 percent of their cost. The firm uses the perpetual inventory record and the first-in-first-out (FIFO) method to determine the balances on both Cost of Goods Sold and Finished Goods Inventory accounts. Required: 1. Prepare cost reports for the fourth quarter of the year for both production departments. Using the First-In-First-Out (FIFO) method, provide the following figures, with supporting calculations, for each department: a. Direct materials cost per equivalent unit b. Conversion cost per equivalent unit c. Prior department cost per equivalent unit (Note: This requirement applies to Department 2 only.) d. Total costs assigned to units transferred out e. Total costs assigned to spoiled units