Production Cost Report Empire Aviation owns the patent to manufacture the most agile starship in the galaxy; the Tie Fighter. The company uses a process costing system that includes two departments; Assembly and Quality Control. The assembly department of Empire Aviation has the following production and manufacturing cost data for January 2022. There were no unfinished units as of December 31, 2021. Production: 500 units finished and transferred out; 200 units are in ending inventory that are 100% complete as to materials and 30% complete as to conversion costs. Manufacturing costs: Materials $900,000; labor $600,000; overhead $200,000. 1. Using the information above, prepare a Production Cost Report for January. Peach color cells require data entry, Yellow color cells require formulas. 2. Answer the questions at the end of the report. Quantities Production Cost Report Equivalent Units of Production Equivalent Units Physical Conversion Units Materials Costs Units to be accounted for Total units Units accounted for Total units Costs Unit costs Unit costs (a) (b) Costs to be accounted for Total costs Conversion Materials Costs Total Cost Reconciliation Schedule Cost accounted for Work in Process, January 31 Supplemental Questions: 1) What happened to the number of equivalent units? Why do think this was the case? 2) What was the effect on cost per equivalent unit? Why did it change? 3) What as the effect on total costs in the Cost Reconciliation Schedule? 4) What was the effect on total transferred out costs and ending WIP costs in the Cost Reconciliation Schedule