Question 2: Process Costing Moderna LTD produces Covid 19 vaccine using a weighted-average process costing. The company's production processes are split into two separate departments. The First Department produces the small bottle containers and sends them to the Second Department where actual vaccines are produced and injected into the bottles to be sent to the distribution centres. The Second Department receives the bottle containers from the First Department as "Transferred In' and inject the vaccine into the bottles at a 60% level of the production process. Preservatives as the second materials are injected into the bottles at 70% level of completion. Vaccines are testes at 80% level of completion, and good units are packed at 100% level of completion. Spoilages up to 5% of units passed the inspection will be considered as normal. The bottle (Transfer In) costs of all spoilages are charged back the First Department for 50 cents per unit, and normal spoilages are treated as recovery cost offsetting the conversion cost of the period. You need to separate normal recovery from abnormal recovery (see the workshop solution for week 4, P1). There were 8,000 units at the beginning of the period (BWIP) which were 65% complete in terms of conversion cost. And there were 25,000 units at the end of the period (EWIP) which were 90% complete. During the current production process, the second department received 120,000 units from the first department (as Transfer In) and completed 90,000 vaccines and sent them to its sale department for distribution. The following information is available for the last month in the Second Department: 77 7 78 8 79 9 How many 'Conversion" equivalent units are there to account for? How many 'Packaging' equivalent units are there to account for? How much do the total costs account for? 1 1 1 1 1 80 10 81 11 82 12 83 13 84 14 85 15 86 16 87 17 88 18 89 19 90 20 How much is the total material costs' (account for) in the period? How much is the total 'Transferred In costs' (account for) in the period? How much is the total 'Preservatives costs' (account for) in the period? How much is the total 'Conversion costs' (account for) in the period? How much is the total Packaging costs' (account for) in the period? How much is the 'cost per unit' for the material for the period? How much is the 'cost per unit' for 'Transferred In' for the period? How much is the 'cost per unit' for 'Preservatives" for the period? How much is the 'cost per unit' for 'Conversion' for the period? How much is the 'cost per unit' for the 'Packaging' for the period? 1 1 1 1 1 1 How much is the total costs of completed units before adding the costs of normal spoilage? 1 91 21 How much is the total costs of completed units after adding the costs of normal spoilage? 1 92 22 How much is the total cost of abnormal spoilage? 2 93 23 How much is the total cost of ending inventories? 2 94 24 How much is the total cost of one unit of product completed and transferred out during the month? 1 95 25 96 26 How much is the total sale value of normal spoilage? 2 How much is the total sale value of abnormal spoilage? Total marks for the question 2 30 Direct Materials (S) Transfer In Costs ($) Preservatives Conversion Costs ($) Packaging Costs of BWIP Costs added during $12,000 S154,400 $5,000 $59,000 $0 $25,600 $6,000 $107,485 SO $18,000 the period Required: Prepare a full process cost reports (including all five steps) for the Second Department for the month using the weighted average method to answer all questions in the following table. Use the actual numbers (with all decimal places) for all calculations but round the final answers to a full unit with no decimal places when answering the questions online on Canvas, except for unit prices for each cost item. It means only two decimal places for unit costs of material cost, Transfer in cost, preservative cost, conversion cost, packaging cost and full cost (per unit). Your report must answer the following questions: Questions AI NO 71 1 How many total units are there to account for? Marks 1 72 2 73 3 74 4 75 5 76 6 How many normal spoilage units are there to account for? How many abnormal spoilage units are there to account for? How many 'material' equivalent units are there to account for? How many "Transferred In' equivalent units are there to account for? How many 'Preservatives' equivalent units are there to account for? 1 1 1 1 6 7