MiniCase_5_ACCT 3500 "I think we goofed when we hired that new assistant controller," said Michelle George, president of Millennium Industries. "Just look at this report that he prepared for February 2022 for the Finishing Department. I can't understand it." Finishing Department costs: Work in process inventory, February 1, 650 units; materials 100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 1,850 units $ 11,850* 17,020 Materials cost added during the month 8,210 Conversion costs incurred during the month 16,900 Total departmental costs $53,980 Finishing Department costs assigned to: Completed and transferred to finished goods, 2,000 units at $26.99 per unit $53,980 Work in process inventory, February 28, 500 units; materials 0% complete; conversion 35% complete Total departmental costs assigned 0 $53,980 *Contains Transferred in costs $5,870, materials $2,860, and conversion cost of $3,120 Table Summary: Two-column table shows descriptions in the first column and dollar values in the second column. The first section calculates total departmental costs for the Finishing Department, and the second section calculates total departmental costs assigned for the Finishing Department. A note at the bottom applies to the first dollar amount. "He's struggling to learn our system," replied Rhonda Todd, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly." "It's not just the format of his report that I'm concerned about. Look at that $26.99 unit cost that he's come up with for February. Doesn't that seem high to you?" said Ms. George. "Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during February, and that may be the explanation," replied Ms. Todd. "I'll get someone else to redo this report and then we can see what's going on. Millennium Industries manufactures a plastic product that goes through two processing departments-Molding and Finishing. The company uses the weighted- average method in its process costing. Required: 1. As you have learned Process Costing in detail, prepare a report for the Finishing Department showing A) the Physical Flow of units and Equivalent units B) how much would be Cost per Equivalent unit? C) how much cost should have been assigned to the units completed and transferred to finished goods, and how much cost should have been assigned to ending work in process inventory in the Finishing Department. 2. Explain to the president why the unit cost on the new assistant controller's report is so high. 3. Prepare a Cost Reconciliation report