Thornton Corporation makes a health beverage named Thornton that is manufactured in a two-stage production process. The drink is first created in the Conversion Department where material ingredients (natural juices, supplements, preservatives, etc.) are combined. On July 1, Year 2, the company had a sufficient quantity of partially completed beverage mix in the Conversion Department to make 70,000 containers of Thornton. This beginning inventory had a cost of $46,200. During July, the company added ingredients necessary to make 190,000 containers of Thornton. The cost of these ingredients was $525,000. During July, liquid mix representing 180,000 containers of the beverage was transferred to the Finishing Department. The beverage mix is poured into containers and packaged for shipment in the Finishing Department. Beverage that remained in the Conversion Department at the end of July was 30 percent complete. At the beginning of July the Finishing Department had 14,000 containers of beverage mix. The cost of this mix was $25,000. The department added $96,660 of manufacturing costs (materials, labor, and overhead) during July. During July, 125,000 containers of Thornton were completed. The ending inventory for this department was 40 percent complete at the end of July. Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a Cost of Production Report for the Finishing Department for July. c. If 110,000 containers of Thomton are sold in July for $605,000, determine the company's gross margin for July. Prepare a Cost of Production Report for the Conversion Department for July. (Round "Cost per unit" answer to 2 decimal places.) \begin{tabular}{|l|l|l|l|} \hline Cost per Unit \\ \hline Cost accumulation \\ \hline Beginning inventory & & \\ \hline Cost added to production & & \\ \hline Total to be accounted for & & \\ \hline & & \\ \hline Cost per unit & & \\ \hline Cost Allocation & \\ \hline To the finishing department & \\ \hline To ending work in process inventory & \\ \hline Total allocated cost & \\ \hline \end{tabular} Required B> Saved \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|l|}{ IVlai aucuuliteu iul } & & \\ \hline Cost per Unit & & \\ \hline Cost accumulation & & \\ \hline Beginning inventory & & \\ \hline Cost transferred In & & \\ \hline Cost added to production & & \\ \hline Total to be accounted for & & \\ \hline & & \\ \hline Cost per unit & & \\ \hline \multicolumn{1}{|l|}{ Cost allocation } & \\ \hline To the finished goods inventory & \\ \hline To ending work in process inventory & \\ \hline \multicolumn{1}{|l|}{ Total allocated cost } & \\ \hline \end{tabular} If 110,000 containers of Thornton are sold in July for $605,000, determine the company's gross margin for July. (Round intermediate calculations to 2 decimal places.)
