Process Costing for 3 Departments in the following month.

You are to prepare the production report for each department for APRIL for Warren Electronics based upon the following information:

DEPARTMENT #1 (ALL material is added at the beginning of this department)

Started 7,200 NEW units during the month

Ending Inventory 900 units (30% complete)

Costs Incurred in Department #1

Material $11,100

Conversion Costs $15,750

DEPARTMENT #2 (ALL material is added at the 50% point in this department)

Ending Inventory 1,650 units (20% complete)

Costs incurred in Department #2

Material $11,580

Conversion Costs $32,812

DEPARTMENT #3 (ALL material is added at the 70% point in this department)

80 units were defective and were thrown away. This spoilage occurred at the 25% point in the department and was considered abnormal.

Ending Inventory 1,500 units (80% complete)

Costs incurred in Department #3

Material $6,212

Direct Labor $24,580

Factory Overhead (allocated) $14,148

(For the production report, continue to consider Direct Labor and Factory Overhead as one combined cost. You will need the individual amounts for labor and for overhead in order to complete the journal entries required in part f. of this assignment.)

INSTRUCTIONS:

Prepare a computer spreadsheet to calculate the following items for each of the three departments for the month of APRIL:

1. 1. Number of equivalent units
   2. Cost per equivalent unit ROUNDED to the nearest penny - use a rounding formula such as: =ROUND(formula you need,2)
   3. Cost of ending inventory - to the nearest penny
   4. Cost of the spoiled units (in Department #3 only) - to the nearest penny
2. Cost of units completed - to the nearest penny
3. Prepare all journal entries for department #3 only for APRIL assuming that department #3 is the last department. You will need to record
   1. the cost of units transferred in,
   2. the cost of materials used,
   3. the cost of direct labor, assuming 90% has been paid,
   4. the cost of factory overhead allocated,
   5. the cost of abnormal spoilage, and
   6. the cost of units completed, assuming Department #3 is the last department.

Your spreadsheet should be designed so that the amounts are calculated on an Average basis. The purpose of the spreadsheet is to allow the computer to do the repetitive, routine calculations. To accomplish this feat, you should have used many formulas in building your spreadsheet.

Please make any corrections noted on your first assignment before you begin this assignment. Submit your solution for April for each department on a separate page. You should turn in 4 pages (one for each of the three departments in April and one page for Department #3 journal entries).