Problem 4-33 Operation Costing; Unit Cost; Cost Flow; Journal Entries {LO 4-?) {The folio wing information appiies to the questions dismayed below} Orbital Industries of Canada. Inc.. manufactures a variety of materials and equipment for the aerospace industry. A team of R&D engineers in the rm's Winnipeg plant has developed a new material that will be useful for a variety of purposes in orbiting satellites and spacecraft. Tradenamed Ceralam. the material combines some of the best properties of both ceramics and laminated plastics. Ceralam is already being used for a variety of housings in satellites produced in three different countries. Ceralam sheets are produced in an operation called rolling, in which the various materials are rolled together to form a multilayer laminate. Orbital Industries sells many of these Ceralam sheetsjust after the rolling operation to aerospace rms worldwide. However. Orbital also processes many of the Ceralam sheets further in the Winnipeg plant. After rolling. the sheets are sent to the molding operation, where they are formed into various shapes used to house a variety of instruments. After molding, the sheets are sent to the punching operation, where holes are punched in the molded sheets to accommodate protruding instruments, electrical conduits, and so forth. Some of the molded and punched sheets are then sold. The remaining units are sent to the dipping operation, in which the molded sheets are dipped in a special chemical mixture to give them a reective surface. During the month of March, the following products were manufactured at the Winnipeg plant. The direct-material costs are also shown. Direct Direct Hate rials Materials Used in Ceralam Used in Units Sheets Dipping Eeralam sheets [sold after the rolling operation] 3.3m $2,646.3 Nonreflective housings {sold after the punching operation] 4.13m 1,236.8 Reflective housings [sold after the clipping operation] 2.539 "59.333 62,539 Total 15 . 368' $4, 599. Bill?! $62 , EBB The costs incurred in producing the various Ceralam products in the Winnipeg plant during March are shown in the following table. Manufacturing overhead is applied on the basis of direct-labor dollars at the rate of 150 percent. Rolling Holding Punching Dipping Direct material $4.599, can $ -6 $ 4!! $ 62,593 Direct labor 1.539.88 364,3\"? 468.8 158,EIBIB Hanufactu ring overhead 2.295 . Him 545 . i599 1'92 . Him 225 n 399 Total $3,415,033 $918,399 $1,1?. $431,599 Orbital Industries of Canada uses operation costing for its Ceralam operations in the Winnipeg plant. Problem 4-38 Part 1 Required: 1. Complete the following table showing information for each of the four operations. Conversion costs Rolling Molding Punching Dipping Direct labor Manufacturing overhead Total conversion cost 0 0 0 Total units produced: Rolling only Rolling, molding, punching Rolling, molding, punching, dipping Conversion cost per unitProblem 4-38 Part 2 2. Complete the following table showing information for each product (i.e., rolled Ceralam sheets, nonreflective Ceralam housings, and reflective Ceralam housings). Product Costs Nonreflective Reflective Ceralam Sheets Sold after Rolling Ceralam Ceralam Total Costs Housings Housings Direct material: Ceralam sheets $ 0 Chemical dip 0 Conversion costs: Rolling Molding O Punching 0 Dipping 0 Total cost $ 0 $ 0 $ 0 0 Units manufactured Unit cost3. Prepare journal entries to record the flow of all manufacturing costs through the Winnipeg plant's Ceralam operations during March. (Ignore the journal entries to record sales revenue. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 13 > Record raw material and conversion cost incurred by the Rolling department. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal