Paint My Wold completed the following production cost raport for ita Blanding Department for the month of May: (Click the icon lo view the assignment of costs.) icea e e benioniog ot the biensno ndcl and at the end ot the nd Packaging. (cans) Dala frorn the month of May for the Blending Department are as follows: packaging Conversion oosts are added evenly throughout each prccess. The oompany uses the weighted-average method. data from May.) E(Click the icon to view t Read the requirements. record the o0sts of the al entry gallons completed and tranatered out to the Packacing Degartment, Assume labor costa are accrued and not vet paid, (Record debita firet, then credits, Exclude exolenetions from any lourmal entries.k Begin with the sunmary journal entry la reord the assignment of direcl malerials and direct lakar and the allocalion of manufachuring overhead la the Biending Department Accounts Debit Credit Dat i Data Table May 31 Gallons Begihning Work-in-Process Inventory gallons Next, prepare the journal cntry to record the costs of the gallons cormpleied and trarisferred out to the Packaging Department. Started in production 9.900 gallons Credit Accounts. Debit Completed and transferred out to Packaging in May 5.800 gallons Date Ending Work-in-Process Invenlory (30% of the way Ihraugh 100 gallons May 31 the blending prooess) Costs Beginning Work-in-Process Inverntory Costs added during May: Requirement 2. Post the journal entries to the Work-in- Process Inventory-Blending T-account. What is the ending balance? 4.960 Direct materials appropriate descriptions as posting references. Denote the ending balance "Sal." Post entries using th Direct labor 1912 Work-in-Process Inventory-Blending 900 Manufacturing overhead allocatod Bea. Bal. s 7.762 Total costs added during May Print Done Requirement 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Determine the formula, then enter the amounts to calculate the average cost per gallon trarsferred out of the Blending Department, (Round vour answer to the nearest cent.) Average cost per gallon Why would the company managers want to know this cost? O A Managers would compare the averape opst per gallon against their budgeted costs to determine whether the costs of the blending process remain under control. If budgeted costs are higher than the actual averace cost per gallon. the higher-than-expected ooets i then the managers have done a good job controlling costs. In contrast, if the budgeted costs are lower than the actual average cost per gallon, managers will investigate the reason t an effort to OB tral ovr O C. Managers use gallon for external financial reportingspecifical ly ta calculale the Cost of Goods Sold on the Income Slalement cost per gallon fr external financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet. OD. All of the above are reasons why management would be interested in this oost per unit for gallons compicted and transferrod aut to Finished Gcods Inventory i Reference Paint My World Production Cost Report- Blending Department (Partial) Month Ended May 31 Direct Total Conversion Costs Materials Costs COSTS Costs to account for O S Beginning work-in-process 0 2812 7,762 950 Cosls added during the period Total costs to account for 950 2,812 7,782 7,030 e00 Divided by: Total EUP a.50 S n 4t Cost per equlvalent unit Costs aooounted for Completed and transferred out 2,800$ 2,320 S 5,220 2,050 2,542 Ending work-in-process 4,950 S 2,812 S 7,782 Total costs accounted for Print Done