Leonard Nimoy & Starfleet Enterprises Innovation Group manufactures components for alternative energy products (solar, wind, etc.) for multiple markets and makes many products and byproducts. The production cost report provided is for Department 1. The department does the initial component processing to allow it to be added to other circuitry boards and solar/wind electrical components. Once this step occurs, all production is transferred to the Department 2 for further development operations. ALL OF DEPARTMENT 2 OUTPUT IS SENT FOR FURTHER PROCESSING IN THE DEPARTMENT 3. Please note that all cost per unit values have been formatted to 3 decimals. All reports are reflective of a March 31, 2020 month end.

The following information is available for the current month, reflecting work in the Department 2:

Beginning Work in Process Units		Costs of Beginning Work in Process:
(56% complete - conversion)	732 units	Material	$33,920
		Conversion	$28,934
Ending Work in Process Units		Additional Production Costs:
(72% complete - conversion)	948 units	Material	$72,778
Abnormal loss	10	Conversion	$81,413
Normal spoilage (continuous)	Remaining unaccounted for units
Transferred out units (24% = finished byproduct. 76% transferred to Department 3 for further processing.	12,876 units

To create a new unit, 82% of materials are added at the start of production. The remaining 18% is added at the very end of processing, just prior either selling the finished product or moving to another Department for final processing. Adding the final 18% generates a computerized process in the company’s ERP Production System to move the products to a finished and transferred out status. This accounting process is easily accomplished since the company implemented NetSuite as a “cloud” application.

Of the product transferred out, all 24% of the units (generic product) and costs are sold immediately with a 40% cost markup to customers with long-term logistics contracts. These transactions are handled totally by their Customer Relationship Management (CRM) and Supply Chain Management (SCM) ERP modules.

The remaining 76% of transferred out product is sent to Department 3 for final processing. Complete the following

Independence National Automotive Components Inc. Electronic Components Department
Quantities	Physical	Equivalent Units	Equivalent Units	Equivalent Units
	Units	Direct Materials	Direct Labor	Mfg. Ovhd.
Units to be accounted for
Begin WIP
Transferred in from Fabrication
Total Units
Units accounted for
Transferred Out
Normal Spoilage
Abnormal Spoilage
Ending WIP
Total Units
WIP Completion Percentages		87.902%	64.085%	51.265%
Normal spoilage	0.0025%	0.0045%	0.0065%
Abnormal spoilage	0.0075%