Q1. a Luxguard Home Paint Company produces exterior latex paint, which it sells in one-gallon containers. The company has two processing departments Base Fab and Finishing. White paint, which is used as a base for all the company's paints, is mixed from raw ingredients in the Base Fab Department. Pigments are then added to the basic white paint, the pigmented paint is squirted under pressure into one- gallon containers, and the containers are labeled and packed for shipping in the Finishing Department. Information relating to the company's operations for April follows: Issued raw materials for use in production: Base Fab Department, $851,000; and Finishing Department, $629,000. b. Incurred direct labor costs: Base Fab Department, $330,000; and Finishing Department, $270.000. C. Applied manufacturing overhead cost. Base Fab Department, $665,000; and Finishing Depart- ment, $405,000. d Transferred basic white paint from the Base Fab Department to the Finishing Department, $1,850,000. e Transferred paint that had been prepared for shipping from the Finishing Department to Finished Goods, $3,200,000 Required: 1. Prepare journal entries to record items (a) through (e) above. Post the journal entries from (1) above to T-accounts. The balance in the Base Fab Department's Work in Process account on April 1 was $150,000; the balance in the Finishing Departments Work in Process account was $70,000. After posting entries to the T-accounts, find the ending balance in each department's Work in Process account. 3. Determine the cost of ending work in process inventories and of units transferred out of the Base Fab Department in April. The following additional information is available regarding production in the Base Fab Department during April: 2. 30,000 420,000 370,000 80,000 Production data: Units (gallons) in process, April 1: materials 100% complete, labor and overhead 60% complete Units (gallons) started into production during April Units (gallons) completed and transferred to the Finishing Department Units (gallons) in process, April 30: materials 50% complete, labor and overhead 25% complete. Cost data: Work in process inventory, April 1: Materials Labor Overhead Total cost of work in process Cost added during April: Materials Labor Overhead Total cost added during April . $ 92,000 21,000 37,000 $ 150,000 $ 851,000 330,000 665,000 $1,846,000 Q2. Reutter Company manufactures a single product and uses process costing. The company's product goes through two processing departments. Etching and Wiring. The following activity was recorded in the Etching Department during July: 60,000 510,000 70,000 Production data: Units in process, July 1: materials 60% complete, conversion 30% complete Units started into production Units in process, July 31: materials 80% complete, conversion 40% complete Cost data: Work in process inventory, July 1: Materials cost Conversion cost Cost added during July: Materials cost Conversion cost $27,000 $13,000 $468,000 $357,000 1. Materials are added at several stages during the etching process. The company uses the FIFO method Required: Compute the equivalent units of production. 2. Compute the costs per equivalent unit for July Determine the cost of ending work in process inventory and of the units transferred to the Wiring Department Prepare a cost reconciliation between the costs determined in part (3) above and the cost of begin- ning inventory and costs added during the period. 3. 4