On June 1, 2018, Monty Company and Flounder Company merged to form Culver Inc. A total of 877,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 652,000 shares of stock for cash. All 1,529,000 shares were outstanding on December 31, 2020. Culver Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Culver Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after- tax net income of $1,444,000. (The tax rate is 20%.) Determine the following for 2020. (a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share shares shares (b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.) (1) Basic earnings per share (2) Diluted earnings per share Cost per Equivalent Unit The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly through materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Nov. 1 Bal., 900 units, 60% completed 10,566 30 Direct materials, 12,900 units 123,840 134,406 30 Direct labor 30 Factory overhead 30 Goods transferred, 2 units 21,650 16,870 156,056 172,926 ? ? 30 Bal., 1,400 units, 70% completed ? a. Determine the number of units transferred to the next department. 156,546 X units b. Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places. Cost per equivalent unit of direct materials Cost per equivalent unit of conversion 9.2 X 2.90 X c. Determine the cost of units started and completed in November. 16,380 X Feedback Check My Work a. Assume that the units in beginning inventory would be completed first. How many units were then started and completed during the period? How many units are in ending work in process inventory? b. Determine the cost of materials and conversion. Are the equivalent units the same for materials and conversion? When are materials added in the process? c. In order for a unit to be completed it must be complete with respect to materials and conversion in the process. Explain the concepts of the following topics, demonstrate the working and solution for each Illustration, detalled working is needed. For concepts and theories explanation question, further marks will be granted If explanation with any sultable examples and Illustration for guidance. Q1: Queen drink Co is a manufacturer for a popular soda beverage. It has just ended the following processes right on the year end stock valuation period. Process info: particulars Input material Conversion costs Normal loss Scrap value on loss units Actual output at the end of process Units and costs 20,000 units at $15,000 $11,000 5% of input units $1 per unit 19,200 units Please be noted that for all loss units could be scrapped shall be treated as side income from the process. There are no closing and opening WIP for this process. Requirement: 1. Calculate the estimated cost per output unit of the process. 2. Prepare the accounts for process and related transactions. 3. Calculate the abnormal units and its values.