Exercise (Sept 15, 2021) Sand Toys, Inc buys plastic that is used as a direct material in the production of toy pails. After work is completed in the Shaping Department, pails are transferred to the Finishing Department where a handle is added. Direct materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. During the month of June the following cost were incurred in the Shaping Department Direct Materials $16,200 Labor 7.900 Overhead 11.850 During June the first month of operation, the Shaping Department started a total of 20,000 pails of which a total of 17.500 were completed during the month. The remaining 2,500, which were in work in process on June 30, were 90 percent complete with respect to conversion costs 1 Prepare a Unit Reconciliation schedule for Sand Toys Units in Beginning WIP Units started during June Units to account for Units completed and transferred to Finishing Units in Ending WIP Units accounted for 2 Compute total equivalent units for materials and for conversion costs for the Shaping Department for June Units Materials Labor Overhead Units completed EU. ending WIP Total Units Exercise 3 - 3 (Continued) 3 Compute the cost per unit for materials and conversion Costs Material Labor Overhead Total Cost Beginning WIP Cost incurred - June Total Units Units completed EU, Ending WIP Total Cost per equivalent unit Complete a cost reconciliation schedule Total cost to account for Cost of completed units Cost of Ending WIP Materials @ Labor Overhead Total cost accounted for