McCall Corporation uses a process cost accounting system. Materials are added at the beginning of the process. Direct labor and Overhead are added evenly throughout the process. The following are the operating and cost data information for January. The January 1 Beginning Work-In-Process - Cutting consisted of 5,000 units ( 60% complete) The cost for this inventory includes: $20,000 of direct materials, $35,000 of direct labor, and $65,000 of factory overhead. In addition to the beginning inventory, the company started 55,000 units They incurred the following cost into Work-In-Process Inventory: During January, the company completed and transferred out 40,000 units of its product to the WIP - Sewing Department. At the end of the month, the work in process inventory consisted of 20,000 units that were 40% complete with respect to conversion cost. SHOW YOUR WORK - YOU NEED ALL OF THE WORDS ALONG WITH THE NUMBERS (USE THE EXCEL WORKSHEET PROVIDED ON BLACKBOARD TO ANSWER THIS QUESTION) - Weighted average method) You must create formulas - I showed you how to do this in class. A) Prepare the company's process cost summary for January: The report should include all of the following: a) Units to Account For and Units Accounted For b) Find Equivalent Units c) Cost to Account For d) Cost per Equivalent Unit e) Cost Accounted For B) Prepare the Journal entry for the transfer to the Sewing Department Process Casling Warksheet 2 W Average melhod \begin{tabular}{l|l|l|} \hline & \\ \hline 4 & \\ \hline 5 & \\ \hline \end{tabular} 6 Step 1 - Find Units to Account For Slep 2- Urits Accounted For \begin{tabular}{|l|l|} \hline 7 & \\ \hline 8 & BI \\ 9 & StartedTransferred in \\ 10 & \\ 11 & Total Urits lo Account For \\ \hline \end{tabular} Completed \& Trans Out E] Tetal Units Accounted For \begin{tabular}{l|l|} \hline 12 & \\ \hline 13 & \\ 14 & Step 3- Find Equivelant Units \\ \hline \end{tabular} % \begin{tabular}{|l|l|} \hline 15 & \\ 16 & C\&TO \\ 17 & El \\ 18 & \\ 19 & Total Equivelant Units \\ \hline \end{tabular} TransfarredinDMCC-IncludesDLandOH \begin{tabular}{l|l} \hline 23 & Step 4-Cost to Accoum \\ 24 Cosining \\ \hline 5 & Total Cost to Account For \\ \hline \end{tabular} Transferred in DM CC Tatals \begin{tabular}{|l|l|} \hline 27 & \\ 29 & Step 5 - Cost per EU \\ \hline & Divide by PU \end{tabular} 30 Divide by EU 31 32 Cost per EU 35 Step 6- Cost Accounted Far C\& TO (All should be a: 100\%) TI+DM+CC Totals 49 50