FLORIDA CORPORATION .manufactures shampoo in two departments, Mixing and Packing. Once the shampoo mixture is completed in the Mixing Department, it is sent to the Packing department, where a machine fills and seals individual bottles, which are then passed to a machine that places the bottles in individual boxes. In the Mixing department, materials are added at the beginning of the process. In the Packing department, however, we have several different materials and, therefore, materials are added at different parts of the process. (The percentage of completion amounts are given, so that you don't have to figure out what materials are added where.) The company uses the weighted average process costing method for assignment of production costs. The following information is related to production in the Mixing Department for February 2019: Beginning work in process (50%) Started in February 15,000 660,000 675.000 Unit accounting Transferred to packing Ending work in process (80%) ? 30,000 Beginning work in process Current Cost information Material Conversion $8,500 $3,700 254,750 192,500 $263,250 $196,200 Total $12,200 447,250 $459,450 Required: For requirements 1 and 2, assume that all units produced were "good" units and met the company's quality-control standards. (In this department, units are inspected at the end of the production process.) In doing your computations, round ALL equivalent unit costs to 2 decimal places. 1. Prepare the journal entries and T account showing a) the BWIP and b) the current direct materials and conversion costs incurred. 2. Prepare a production report for the Mixing Department in our 6-part format. 3. Prepare the journal entry to record the completion of units in the Mixing Department, assuming that there is another department (Packing) which uses puts the shampoos into bottles after the Mixing Department. 4. What if the beginning WIP was only 20% complete as to conversion - would this change anything? Why or why not? 5. What if the beginning WIP was 90% complete as to conversion - would this change anything? Why or why not? 6. SUPPOSE that the FIFO method was used for this department instead. What would be the equivalent units and unit costs for materials and conversion? 7. Based on #6 above, using the FIFO method, explain HOW we would compute the unit costs for Materials and Conversion 8. Back to the original situation .... Weighted Avg. method. Suppose that the units are inspected at the end of the mixing department before they are transferred to packing, and 10,000 of the units failed inspection and were removed from production at that point and only 635,000 were completed and transferred to packing. You won't be tested on this, but put your thinking caps on and see if you can figure it out)! a) Would this change the equivalent units of materials or conversion? Explain. If so, what would the new equivalent unit costs of materials and conversion be? What effect would this have on the company's income statement and balance sheet? b) What if, instead of the units being inspected at the END of the mixing, instead, the inspection point happened to be when they were 60% completed. Would this matter? What would be the answers to (a) above NOW? 9. NOW ASSUME that we are doing the production report for the NEXT (and last) department, the packing department. What will we do with the costs that were transferred out of the Mixing and into the Packing? What steps will we take when preparing a production report for the Packing Department? FLORIDA CORPORATION .manufactures shampoo in two departments, Mixing and Packing. Once the shampoo mixture is completed in the Mixing Department, it is sent to the Packing department, where a machine fills and seals individual bottles, which are then passed to a machine that places the bottles in individual boxes. In the Mixing department, materials are added at the beginning of the process. In the Packing department, however, we have several different materials and, therefore, materials are added at different parts of the process. (The percentage of completion amounts are given, so that you don't have to figure out what materials are added where.) The company uses the weighted average process costing method for assignment of production costs. The following information is related to production in the Mixing Department for February 2019: Beginning work in process (50%) Started in February 15,000 660,000 675.000 Unit accounting Transferred to packing Ending work in process (80%) ? 30,000 Beginning work in process Current Cost information Material Conversion $8,500 $3,700 254,750 192,500 $263,250 $196,200 Total $12,200 447,250 $459,450 Required: For requirements 1 and 2, assume that all units produced were "good" units and met the company's quality-control standards. (In this department, units are inspected at the end of the production process.) In doing your computations, round ALL equivalent unit costs to 2 decimal places. 1. Prepare the journal entries and T account showing a) the BWIP and b) the current direct materials and conversion costs incurred. 2. Prepare a production report for the Mixing Department in our 6-part format. 3. Prepare the journal entry to record the completion of units in the Mixing Department, assuming that there is another department (Packing) which uses puts the shampoos into bottles after the Mixing Department. 4. What if the beginning WIP was only 20% complete as to conversion - would this change anything? Why or why not? 5. What if the beginning WIP was 90% complete as to conversion - would this change anything? Why or why not? 6. SUPPOSE that the FIFO method was used for this department instead. What would be the equivalent units and unit costs for materials and conversion? 7. Based on #6 above, using the FIFO method, explain HOW we would compute the unit costs for Materials and Conversion 8. Back to the original situation .... Weighted Avg. method. Suppose that the units are inspected at the end of the mixing department before they are transferred to packing, and 10,000 of the units failed inspection and were removed from production at that point and only 635,000 were completed and transferred to packing. You won't be tested on this, but put your thinking caps on and see if you can figure it out)! a) Would this change the equivalent units of materials or conversion? Explain. If so, what would the new equivalent unit costs of materials and conversion be? What effect would this have on the company's income statement and balance sheet? b) What if, instead of the units being inspected at the END of the mixing, instead, the inspection point happened to be when they were 60% completed. Would this matter? What would be the answers to (a) above NOW? 9. NOW ASSUME that we are doing the production report for the NEXT (and last) department, the packing department. What will we do with the costs that were transferred out of the Mixing and into the Packing? What steps will we take when preparing a production report for the Packing Department