* Please read the question properly and provide in format given below please*

Happy Drink Ltd is the licensed bottler of a reputable overseas beverage company for Singapore. It imports concentrates, mixes them with other ingredients and bottles the resulting beverage under the brand name "Refresh" for sales in Singapore.

In the Mixing Process, other ingredients (water, flavouring agents, sugar and carbon dioxide) are added to the concentrates. These are then transferred to the Bottling Process where the beverage is then bottled into standard 250ml cans and transferred to the finished goods store for deliveries to the customers. Concentrates are issued at the beginning of the Mixing Process.

The other mixing costs (including other ingredients) are incurred evenly throughout that process. Similarly, cans are added at the beginning of the Bottling Process while the other costs are incurred evenly. Overhead is applied into the mixing and the bottling, at a rate of 50% and 100% of direct labour cost respectively. It is considered normal for some of the beverage to be lost due to evaporation during mixing and some cans of beverage to be rejected during bottling.

Quality control inspection is applied at the end of the Bottling Process to determine whether completed products are safe for consumption. Those canned drinks that are deemed unsafe are rejected and considered as spoilt. It is acceptable that spoilage is normal if rejected cans of beverage are no more than 2% of the completed good cans of beverage produced. The loss of the beverage in the Mixing Process is assumed to take place at the end of the process.

The cost of this loss is written off as a loss of the period in which it occurs. This cost is measured at the cost of the concentrates plus the costs of the Mixing Process, but no bottling cost is charged. Happy Drink Ltd uses FIFO system of costing.

The following data summarize the firms activities during August (Please see attached)

None of the opening work in process and closing work in process had entered the Bottling Process.

The units in the closing work in process were on average 60% complete as to the Mixing Process; none had entered the Bottling Process.

(1) Using the four-step approach: (Please use this format)

(a) Calculate the closing work in process for the Mixing Process in litres and for the Bottling Process in cans.

(b) Calculate the number of equivalent units processed in August, distinguishing between Mixing Process and Bottling Process.

(c) Calculate the costs per equivalent unit for each product cost category processed in August for the Mixing Process and the Bottling Process

(d) the costs of beverage per litre transferred from the Mixing Process to the Bottling Process,

(e) the cost of each can of bottled beverage transferred from the Bottling Process, the costs of abnormal spoilage, lost and closing WIP.

(f) Prepare and show all the necessary journal entries.

$50,000 $9,000 $12,000 100,000 litres Opening WIP Concentrates Other ingredients Direct labour cost (mixing) to 31 Jul 30% of conversion done Costs incurred during August Concentrates Other ingredients Cans Direct labour cost (mixing) Direct labour cost (bottling) Production data for August Units started in Mixing Process $112,000 $72,840 $76,800 $97,120 $153,600 224,000 litres cans Good cans completed from Bottling Process 720,000 Spoiled units (bottling) 48,000 Lost units (mixing) 4,000 cans litres Total spoilage 1,600 + 35,200 - 31,600 - 2,400 2,800 Equivalent units TIC DM CC Total 0 Beg WIP Started & Completed Spoiled End WIP Total EUs Costs Beg WIP Current Costs Physical units 1,600 30,000 2,800 2,400 36,800 30,000 2,800 2,400 35,200 0 30,000 2,800 2,400 35,200 800 30,000 2,100 1,440 34,340 $9,600 $6,400 $228,800 $158,400 $2,200 $18,200 $103,020 $490,220 Cost per EU(current costs) $6.50 $4.50 $3.00 $14.00 $50,000 $9,000 $12,000 100,000 litres Opening WIP Concentrates Other ingredients Direct labour cost (mixing) to 31 Jul 30% of conversion done Costs incurred during August Concentrates Other ingredients Cans Direct labour cost (mixing) Direct labour cost (bottling) Production data for August Units started in Mixing Process $112,000 $72,840 $76,800 $97,120 $153,600 224,000 litres cans Good cans completed from Bottling Process 720,000 Spoiled units (bottling) 48,000 Lost units (mixing) 4,000 cans litres Total spoilage 1,600 + 35,200 - 31,600 - 2,400 2,800 Equivalent units TIC DM CC Total 0 Beg WIP Started & Completed Spoiled End WIP Total EUs Costs Beg WIP Current Costs Physical units 1,600 30,000 2,800 2,400 36,800 30,000 2,800 2,400 35,200 0 30,000 2,800 2,400 35,200 800 30,000 2,100 1,440 34,340 $9,600 $6,400 $228,800 $158,400 $2,200 $18,200 $103,020 $490,220 Cost per EU(current costs) $6.50 $4.50 $3.00 $14.00