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 732 units Material $33.920 conversion) Conversion $28,934 Ending Work in Process Units Additional Production Costs: (72% complete 948 units Material $72,778 conversion) Abnormal loss 10 Conversion $81,413 Normal spoilage (continuous) Remaining unaccounted for units 12.876 units Transferred out units (24% finished byproduct. 76% transferred to Department 3 for further processing 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. The following information is available for the current month, reflecting work in the Department 3: Beginning Work in Process Units Costs of Beginning Work in Process: (62% complete- 218 units Material $27,467 conversion) Conversion $71,237 Ending Work in Process Units Additional Production Costs: 164 units Material $1,286,668 (75% complete- materials) (60% complete - conversion) Abnormal loss Conversion $804,684 Normal loss - defective .004 units X Total Units chips accounted for ? units Transferred out units (28% transferred to Department 4 and 72% transferred to Department 5 for further processing.) The following information is available for the current month, reflecting work in the Department 4 Beginning Work in Process Units Costs of Beginning Work in Process: (39% complete - 364 units Material $38,710 conversion) Conversion $48,683 Ending Work in Process Units Additional Production Costs: 136 units Material $297,562 2 Conversion $473,936 (82% complete- materials) (68% complete conversion) Abnormal loss Normal loss Transferred out units 100% complete and moved to finished goods inventory 14 units ? units The following information is available for the current month, reflecting work in the Department 5 Beginning Work in Process Units Costs of Beginning Work in Process: (49% complete - 192 units Material $100,655 conversion) Conversion $97,971 Ending Work in Process Units Additional Production Costs: 165 units Material $3,106,846 (82% complete- materials) (66% complete - conversion) Abnormal loss 32 Conversion $4,180,439 Normal loss 24 units ? units Transferred out units 100% complete and moved to finished goods Inventory Complete departments 2,3,4,5 production cost reports for the month. Generate all journal entries necessary for the current month reflecting the activity for the company from the above Problem 5 - Production Cost Reports for Departments 2, 3, 4, and 5, in problem #5. Beginning WIP balances would have already been journalized. Show all transfer transactions. Complete the General Ledger T-account for WIP in each department. Please note that I have you repeating some JE for the transfer in to departments to help visualize the transactions and to assist in the computation of the final WIP T account balance. I know this is duplicative, but it is intended to help your process. Quantities Department 1 - Production Cost Report for March 2020 Physical Equivalent Units Units Materials Units to be accounted for Begin WIP Started into Production Total Units 615 12,885 13,500 13,245 13,245 Units accounted for Transferred Out - Department 1 Normal Spoilage e Abnormal Spoilage 8 Ending WIP Total Units 13,245 29 12 214 13,500 12 193 13,450 12 163 13,420 Total - Costs Begin WIP 8 Production Costs Total Costs Equivalent Units Unit Cost Materials $8,062 $20,949 $29,011 13,450 $2.157 Conversion Costs $12,680 $25,091 $37,771 13,420 $2.815 $20,742 $46,040 $66,782 $4.972 Units Materials Conversion Costs Total 1 3,245 $28,569 $37,279 $65,849 $26 $34 $60 Cost Reconciliation Schedule # Costs Accounted for 5 Transferred Out - Department 1 Normal Spoilage Abnormal Spoilage Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP Percent complete Ram 91 $415 LU $458 S8731 $29,011 $37,771 $66,782 100% 90% 100% 76% Department 1 - March 2020 Journal Entries WIP - Department 1 20,949 Raw Materials 29,011 WIP - Department 1 25,091 Payroll & MO 37,771 WIP - Department 2 65,849 WIP - Department 1 65,849 Abnormal Loss 60 WIP - Department 1 60 Begin Bal DM CC Abnormal Transfer out WIP - Department 1 20,742 20,949 25,091 60 65,849 65,909 66,782 873 Ending Balance Report Balance 873 Reconciled CON Quantities Department 2 - Production Cost Report for March 2020 bits | Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in - Department 1 Total Units 6 13,245 13,245 . Units accounted for 10 Transferred Out - Department 2 11 Normal Loss 12 Abnormal Loss 13 Ending WIP 14 Total Units ? Materials Conversion Costs Total $28,569 $37,279 Costs 17 Begin WIP 18 Transferred In - Department 1 19 Additional costs for production 20 Total Costs 21 Equivalent Units 22 Unit Cost $65,849 $0 $28,569 $37,279) $0.000 Units Materials Conversion Costs Total o $0 o 0 SO 24 Cost Reconciliation Schedule 25 Costs Accounted For 26 Transferred Out - Dept2/Generic 27 Normal Loss 28 Abnormal Loss 29 Ending WIP 30 Materials 31 Conversion Costs 32 Total WIP Costs Total 34 Finished & Transferred Out 35 WIP - Percent complete . $0 100% 82% 100% 72% 37 Finished Goods Inventory % 38 Finished Goods Markup % 39 Department 3 Transfer % 24.00% 40.00% 76.00% Department 2 - March 2020 Journal Entries WIP - Department 2 65,849 WIP - Department 1 65,849 WIP - Department 2 Raw Materials WIP - Department 2 Payroll & MO FG - Generic Prod WIP - Department 3 WIP - Department 2 Abnormal Loss WIP - Department 2 A/R Sales Cash A/ RT Cost of goods sold Finished Goods WIP - Department 2 65,849 Begin Bal Transfer in DM CC Abnormal Transfer out 65,849 65,849 Ending Balance Report Balance Error Quantities Department 3 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units | Materials Conversion Costs Units to be accounted for 7 Begin WIP 8 Transferred in - Department 2 9 Total Units 0 -1 Units accounted for 2 Transferred Out - Department 3 3 Normal Loss 4 Abnormal Loss 5 Ending WIP 6 Total Units Materials Conversion Costs Total SO - 8 Costs 9 Begin WIP 0 Transferred In - Department 2 1 Additional costs for production 2 Total Costs 3 Equivalent Units 4 Unit Cost SO $0.000 Units Materials Conversion Costs Total + ol 6 Cost Reconciliation Schedule 7 Costs Accounted For B Transferred Out - Department 3 9 Normal Loss 0 Abnormal Loss 1 Ending WIP 2 Materials 3 Conversion Costs 4 Total WIP Costs 5 Total 6 Finished & Transferred Out 7 WIP. Percent complete $0 100% 75% 100% 60% 76% 76% 76% 9 Dept 2 - Transferred in Percent 0 Normal Loss 1 Dept 3 - Transferred out to Dept 4% 2 Dept 3 - Transferred out to Dept 5% 0.400% 81% 81% 81% 19% 19% 19% Department 3 - March 2020 Journal Entries WIP - Department 3 WIP - Department 2 WIP - Department 3 Raw Materials WIP - Department 3 Payroll & MO T WIP - Department 4 WIP - Department 5 T T WIP - Department 3 T T 11/ Abnormal Loss WIP - Department 3 mm / / WIP - Department 3 Begin Bal Transfer in / DM / CC Abnormal Transfer out / / 17 / / IX Ending Balance / Report Balance Reconciled / Quantities Department 4 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP transferred in - Department 3 Total Units Units accounted for Transferred Out - Department 4 Normal Loss \bnormal Loss Ending WIP Total Units Materials Conversion Costs sco 0 Costs it legin WIP 12 ransferred In - Department 3 53 Additional costs for production 34 Total Costs 5 quivalent Units 06 Jnit Cost $0.000 Units Materials Conversion Costs 08 Cost Reconciliation Schedule 109 Posts Accounted For 10 ransferred Out - Department 4 11 Normal Loss 12 Abnormal Loss 13 Ending WIP 14 Materials 115 Conversion Costs 16 Total WIP Costs 117 Total 18 finished & Transferred Out 19 NIP. Percent complete 20 121 Department 3 - Transferred in % 100% 100% 68% 122 Department 4 - March 2020 Journal Entries WIP - Department 4 WIP - Department 3 WIP - Department 4 Raw Materials WIP - Department 4 Payroll & MO I Finished Goods . T WIP - Department 4 1 Abnormal Loss WIP - Department 4 WIP - Department 4 Begin Bal Transfer in DM Abnormal Transfer out Ending Balance . 21 Report Balance Reconciled 1 Quantities Department 5 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in - Department 3 Total Units 0 0 . Units accounted for Transferred Out - Department 5 Normal Loss Abnormal Loss Ending WIP Total Units . Materials Conversion Costs Total Costs Begin WIP Transferred In - Department 3 Additional costs for production Total Costs Equivalent Units Unit Cost Sol $0 $0 $0 $0.000 Units Materials Conversion Costs Total $0 Cost Reconciliation Schedule Costs Accounted For Transferred Out - Department 5 Normal Loss Abnormal Loss Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP - Percent complete $0 sol 100% 82% 100% 66% Department 3 - Transferred In % 72% 72% Department 5 - March 2020 Journal Entries WIP - Department 5 WIP - Department 3 WIP - Department 5 Raw Materials WIP - Department 5 Payroll & MO Finished Goods - WIP - Department 5 Abnormal Loss WIP - Department 5 WIP - Department 5 Begin Bal Transfer in DM CC Abnormal Transfer out Ending Balance Report Balance Reconciled 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 732 units Material $33.920 conversion) Conversion $28,934 Ending Work in Process Units Additional Production Costs: (72% complete 948 units Material $72,778 conversion) Abnormal loss 10 Conversion $81,413 Normal spoilage (continuous) Remaining unaccounted for units 12.876 units Transferred out units (24% finished byproduct. 76% transferred to Department 3 for further processing 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. The following information is available for the current month, reflecting work in the Department 3: Beginning Work in Process Units Costs of Beginning Work in Process: (62% complete- 218 units Material $27,467 conversion) Conversion $71,237 Ending Work in Process Units Additional Production Costs: 164 units Material $1,286,668 (75% complete- materials) (60% complete - conversion) Abnormal loss Conversion $804,684 Normal loss - defective .004 units X Total Units chips accounted for ? units Transferred out units (28% transferred to Department 4 and 72% transferred to Department 5 for further processing.) The following information is available for the current month, reflecting work in the Department 4 Beginning Work in Process Units Costs of Beginning Work in Process: (39% complete - 364 units Material $38,710 conversion) Conversion $48,683 Ending Work in Process Units Additional Production Costs: 136 units Material $297,562 2 Conversion $473,936 (82% complete- materials) (68% complete conversion) Abnormal loss Normal loss Transferred out units 100% complete and moved to finished goods inventory 14 units ? units The following information is available for the current month, reflecting work in the Department 5 Beginning Work in Process Units Costs of Beginning Work in Process: (49% complete - 192 units Material $100,655 conversion) Conversion $97,971 Ending Work in Process Units Additional Production Costs: 165 units Material $3,106,846 (82% complete- materials) (66% complete - conversion) Abnormal loss 32 Conversion $4,180,439 Normal loss 24 units ? units Transferred out units 100% complete and moved to finished goods Inventory Complete departments 2,3,4,5 production cost reports for the month. Generate all journal entries necessary for the current month reflecting the activity for the company from the above Problem 5 - Production Cost Reports for Departments 2, 3, 4, and 5, in problem #5. Beginning WIP balances would have already been journalized. Show all transfer transactions. Complete the General Ledger T-account for WIP in each department. Please note that I have you repeating some JE for the transfer in to departments to help visualize the transactions and to assist in the computation of the final WIP T account balance. I know this is duplicative, but it is intended to help your process. Quantities Department 1 - Production Cost Report for March 2020 Physical Equivalent Units Units Materials Units to be accounted for Begin WIP Started into Production Total Units 615 12,885 13,500 13,245 13,245 Units accounted for Transferred Out - Department 1 Normal Spoilage e Abnormal Spoilage 8 Ending WIP Total Units 13,245 29 12 214 13,500 12 193 13,450 12 163 13,420 Total - Costs Begin WIP 8 Production Costs Total Costs Equivalent Units Unit Cost Materials $8,062 $20,949 $29,011 13,450 $2.157 Conversion Costs $12,680 $25,091 $37,771 13,420 $2.815 $20,742 $46,040 $66,782 $4.972 Units Materials Conversion Costs Total 1 3,245 $28,569 $37,279 $65,849 $26 $34 $60 Cost Reconciliation Schedule # Costs Accounted for 5 Transferred Out - Department 1 Normal Spoilage Abnormal Spoilage Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP Percent complete Ram 91 $415 LU $458 S8731 $29,011 $37,771 $66,782 100% 90% 100% 76% Department 1 - March 2020 Journal Entries WIP - Department 1 20,949 Raw Materials 29,011 WIP - Department 1 25,091 Payroll & MO 37,771 WIP - Department 2 65,849 WIP - Department 1 65,849 Abnormal Loss 60 WIP - Department 1 60 Begin Bal DM CC Abnormal Transfer out WIP - Department 1 20,742 20,949 25,091 60 65,849 65,909 66,782 873 Ending Balance Report Balance 873 Reconciled CON Quantities Department 2 - Production Cost Report for March 2020 bits | Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in - Department 1 Total Units 6 13,245 13,245 . Units accounted for 10 Transferred Out - Department 2 11 Normal Loss 12 Abnormal Loss 13 Ending WIP 14 Total Units ? Materials Conversion Costs Total $28,569 $37,279 Costs 17 Begin WIP 18 Transferred In - Department 1 19 Additional costs for production 20 Total Costs 21 Equivalent Units 22 Unit Cost $65,849 $0 $28,569 $37,279) $0.000 Units Materials Conversion Costs Total o $0 o 0 SO 24 Cost Reconciliation Schedule 25 Costs Accounted For 26 Transferred Out - Dept2/Generic 27 Normal Loss 28 Abnormal Loss 29 Ending WIP 30 Materials 31 Conversion Costs 32 Total WIP Costs Total 34 Finished & Transferred Out 35 WIP - Percent complete . $0 100% 82% 100% 72% 37 Finished Goods Inventory % 38 Finished Goods Markup % 39 Department 3 Transfer % 24.00% 40.00% 76.00% Department 2 - March 2020 Journal Entries WIP - Department 2 65,849 WIP - Department 1 65,849 WIP - Department 2 Raw Materials WIP - Department 2 Payroll & MO FG - Generic Prod WIP - Department 3 WIP - Department 2 Abnormal Loss WIP - Department 2 A/R Sales Cash A/ RT Cost of goods sold Finished Goods WIP - Department 2 65,849 Begin Bal Transfer in DM CC Abnormal Transfer out 65,849 65,849 Ending Balance Report Balance Error Quantities Department 3 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units | Materials Conversion Costs Units to be accounted for 7 Begin WIP 8 Transferred in - Department 2 9 Total Units 0 -1 Units accounted for 2 Transferred Out - Department 3 3 Normal Loss 4 Abnormal Loss 5 Ending WIP 6 Total Units Materials Conversion Costs Total SO - 8 Costs 9 Begin WIP 0 Transferred In - Department 2 1 Additional costs for production 2 Total Costs 3 Equivalent Units 4 Unit Cost SO $0.000 Units Materials Conversion Costs Total + ol 6 Cost Reconciliation Schedule 7 Costs Accounted For B Transferred Out - Department 3 9 Normal Loss 0 Abnormal Loss 1 Ending WIP 2 Materials 3 Conversion Costs 4 Total WIP Costs 5 Total 6 Finished & Transferred Out 7 WIP. Percent complete $0 100% 75% 100% 60% 76% 76% 76% 9 Dept 2 - Transferred in Percent 0 Normal Loss 1 Dept 3 - Transferred out to Dept 4% 2 Dept 3 - Transferred out to Dept 5% 0.400% 81% 81% 81% 19% 19% 19% Department 3 - March 2020 Journal Entries WIP - Department 3 WIP - Department 2 WIP - Department 3 Raw Materials WIP - Department 3 Payroll & MO T WIP - Department 4 WIP - Department 5 T T WIP - Department 3 T T 11/ Abnormal Loss WIP - Department 3 mm / / WIP - Department 3 Begin Bal Transfer in / DM / CC Abnormal Transfer out / / 17 / / IX Ending Balance / Report Balance Reconciled / Quantities Department 4 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP transferred in - Department 3 Total Units Units accounted for Transferred Out - Department 4 Normal Loss \bnormal Loss Ending WIP Total Units Materials Conversion Costs sco 0 Costs it legin WIP 12 ransferred In - Department 3 53 Additional costs for production 34 Total Costs 5 quivalent Units 06 Jnit Cost $0.000 Units Materials Conversion Costs 08 Cost Reconciliation Schedule 109 Posts Accounted For 10 ransferred Out - Department 4 11 Normal Loss 12 Abnormal Loss 13 Ending WIP 14 Materials 115 Conversion Costs 16 Total WIP Costs 117 Total 18 finished & Transferred Out 19 NIP. Percent complete 20 121 Department 3 - Transferred in % 100% 100% 68% 122 Department 4 - March 2020 Journal Entries WIP - Department 4 WIP - Department 3 WIP - Department 4 Raw Materials WIP - Department 4 Payroll & MO I Finished Goods . T WIP - Department 4 1 Abnormal Loss WIP - Department 4 WIP - Department 4 Begin Bal Transfer in DM Abnormal Transfer out Ending Balance . 21 Report Balance Reconciled 1 Quantities Department 5 - Production Cost Report for March 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in - Department 3 Total Units 0 0 . Units accounted for Transferred Out - Department 5 Normal Loss Abnormal Loss Ending WIP Total Units . Materials Conversion Costs Total Costs Begin WIP Transferred In - Department 3 Additional costs for production Total Costs Equivalent Units Unit Cost Sol $0 $0 $0 $0.000 Units Materials Conversion Costs Total $0 Cost Reconciliation Schedule Costs Accounted For Transferred Out - Department 5 Normal Loss Abnormal Loss Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP - Percent complete $0 sol 100% 82% 100% 66% Department 3 - Transferred In % 72% 72% Department 5 - March 2020 Journal Entries WIP - Department 5 WIP - Department 3 WIP - Department 5 Raw Materials WIP - Department 5 Payroll & MO Finished Goods - WIP - Department 5 Abnormal Loss WIP - Department 5 WIP - Department 5 Begin Bal Transfer in DM CC Abnormal Transfer out Ending Balance Report Balance Reconciled