Granger Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Granger is in the business of financing computers, software, and other services that the parent corporation sells. Granger has two departments that are involved in financing services: the credit department and the business practices department. The credit department receives requests for financing from field sales representatives, records customer information on a pre-printed form, and then enters the information into the computer system to check the creditworthiness of the customer. (Other actions may be taken if the customer is not in the database.) Once credit worthiness information is known, a printout is produced with this information plus other customer specific information. The completed form is transferred to the business practices department. The business practices department modifies the standard loan covenant as needed in response to customer request or customer risk profile). When this activity is completed, the loan is priced. This is done by keying information from the partially processed form into a personal computer spreadsheet program. The program provides a recommended interest rate for the loan. Finally, a form specifying the loan terme is attached to the transferred-in document of the loan-term form is sent to th representative and serves as the quote ler... The business practices department modifies the standard loan covenant as needed (in response to customer request or customer risk profile). When this activity is completed, the loan is priced. This is done by keying information from the partially processed form into a personal computer spreadsheet program. The program provides a recommended interest rate for the loan. Finally, a form specifying the loan terms is attached to the transferred-in document. A copy of the loan-term form is sent to the sales representative and serves as the quote letter. The following cost and service activity data for the business practices department are provided for the month of May: Transferred-in applications Applications in process, 1 May, 40% complete Applications in process, 31 May, 25% complete *All materials and supplies are used at the end of the process Transferred-in Direct mat Costs: Beginning WIP Costs added R4 500 R28 000 R1 250 Required: 2.1 Uses the FIFO method to prep... a production report for the month of May. (33) Granger Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Granger is in the business of financing computers, software, and other services that the parent corporation sells. Granger has two departments that are involved in financing services: the credit department and the business practices department. The credit department receives requests for financing from field sales representatives, records customer information on a pre-printed form, and then enters the information into the computer system to check the creditworthiness of the customer. (Other actions may be taken if the customer is not in the database.) Once credit worthiness information is known, a printout is produced with this information plus other customer specific information. The completed form is transferred to the business practices department. The business practices department modifies the standard loan covenant as needed in response to customer request or customer risk profile). When this activity is completed, the loan is priced. This is done by keying information from the partially processed form into a personal computer spreadsheet program. The program provides a recommended interest rate for the loan. Finally, a form specifying the loan terme is attached to the transferred-in document of the loan-term form is sent to th representative and serves as the quote ler... The business practices department modifies the standard loan covenant as needed (in response to customer request or customer risk profile). When this activity is completed, the loan is priced. This is done by keying information from the partially processed form into a personal computer spreadsheet program. The program provides a recommended interest rate for the loan. Finally, a form specifying the loan terms is attached to the transferred-in document. A copy of the loan-term form is sent to the sales representative and serves as the quote letter. The following cost and service activity data for the business practices department are provided for the month of May: Transferred-in applications Applications in process, 1 May, 40% complete Applications in process, 31 May, 25% complete *All materials and supplies are used at the end of the process Transferred-in Direct mat Costs: Beginning WIP Costs added R4 500 R28 000 R1 250 Required: 2.1 Uses the FIFO method to prep... a production report for the month of May. (33)