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Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the

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Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock 5,000 kilos of material at $43.08 per kilo entered the process Direct materials added $92,000 Direct wages incurred 65.700 Production overhead 75.100 Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company's policy to credit the process account with the scrap value of the normal loss units. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input material 100% Direct material added Conversion costs 75% 50% Required: i) ii) Compute the number of equivalent units of work performed by the Molding Department during the period and the cost per equivalent unit for direct materials and conversion costs. Assign total cost to: a. Units completed and transferred out to the Drying Department b. Units rejected as abnormal spoilage c. Units in the Molding department work in process inventory. Prepare the journal entries to record the assignment of direct materials, direct wages and the allocation of manufacturing overhead to the Molding Department Account, as well as, the cost of the units completed and transferred out to the Drying Department. Post the journal entries to the Work in Process Inventory - Molding Department T- account. iii) iv)

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