Question 6 Process Excellence (PE), Inc. has two production departments: Mixing and Packaging. At Mixing Department, all materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. The following information pertains to the Mixing Department for the month of July 2020. Beginning work-in-process inventory, 1 July Physical units Materials Conversion 8,500 7,552 1,000 units (40% complete) Units started in July 5,000 units Ending work-in-process inventory, 400 units 31 July (30% complete) Costs added in July 60,500 130,872 The company uses the weighted-average cost method in its process costing system. Required: a) Prepare a production cost report for the Mixing Department for the month of July 2020 and compute the following: i. Calculate the equivalent units of production. ii. Compute costs per equivalent unit for July (6 Marks) (7 Marks) iii. Compute the cost of units transferred to the Packaging Department and the cost of ending work-in-process inventory. (5 Marks) b) Management would like to reduce the costs of manufacturing the products. In particular, it has set the following per unit targets for this product in the Mixing Department: Materials, 10; and conversion cost, 21. Has the product achieved management's cost targets in the Mixing Department? Write a short report to management stating your answer(s) and discuss possible causes of any variances. (7 Marks) (Total: 25 Marks)