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Units and kg are used synonymously. There is 10,000 normal spoilage and no abnormal spoilage in the Compounding (first) Dept. There is no normal spoilage

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Units and kg are used synonymously. There is 10,000 normal spoilage and no abnormal spoilage in the Compounding (first) Dept. There is no normal spoilage and 10,000 abnormal spoilage in the Packaging (second) Dept. Crespel Company manufactures an antiseptic powder in two successive production departments, Compounding and Packaging. A process cost accounting system and absorption costing are used. The inventory of Work in Process - Compounding and Work in Process-Packaging is costed by the weighted average cost method. The Finished Goods inventory account is costed under the specific units method. At January 1, 2022, the company's beginning inventory balances were as follows: In the Compounding department, the first production process, the beginning inventory consisted of 60,000kg of product, two-thirds (2/3) complete with respect to materials and half (1/2) complete with respect to labour and manufacturing overhead. \{Remember, ignore stage of completion in beginning inventory using Weighted Average\} In the Packaging department, the beginning inventory consisted of 40,000kg,100% complete with respect to materials, and half (1/2) complete with respect to labour and manufacturing overhead. \{Remember, ignore stage of completion in beginning inventory using Weighted Average\} During year 2022 , raw materials purchases totalled $2,480,000. Raw materials were issued to the two production departments in the following amounts: Direct labor costs in the two departments were as follows: Manufacturing overhead is applied to production at the following normal rates per direct labour hol During year 2022 , a total of 740,000kg of product were completed in the Compounding department and transferred to Packaging. At the end of the year, 75,000kg remained in process in Compounding. This inventory was 80% complete with respect to materials and 40% complete with respect to conversion costs. In the Packaging department, a total of 710,000kg of product were completed and transferred to the warehouse for finished product. The inventory in the Packaging process at the end of the year was comprised of 60,000kg,100% complete as to materials and half (1/2) complete as to conversion costs. During the year, 700,000kg of product were sold for $7,000,000. All units sold came from the current year product. 1) Compute Conversion Cost in both departments. Required: 2) Prepare a Production Cost worksheet for the Packaging department. 3) Prepare journal entries to record all of the manufacturing operations of Crespel Company for year 2022. Show variable and fixed costs separately. Present any necessary supporting schedules or computations

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