Zebat Manufacturing began a new product line this year. Management wants a cost report for the current year and a budget for next year. The product requires processing in two departments, Materials are added at the beginning of the process in Department 1. Department 2 finishes the product but adds no direct materials. During the year work was begun on 12,000 units in Department 1, and 9,000 of those units were transferred to Department 2. The remaining 3,000 units were 60% complete with regard to conversion costs in Department 1. During the year Department 1 incurred $36,000 in material costs, $9,060 in direct labor, and $4,980 in manufacturing overhead costs. Department 2 completed and sent 7,000 units to the finished goods warehouse. It ended the period with 2,000 units 40% complete with regards to Departments 2 conversion costs. Department 2 incurred $19,450 in direct labor and $13,310 in manufacturing overhead costs for the year. The plan for next year is to begin an additional 15,000 units in Department 1. Management expects to finish the year with 5,000 units onehalf complete in regards to conversions costs in Department 1. Department 2 is expected to complete 14,000 units, and its ending inventory is expected to be 70% complete. Costs for Department 1 are expended to be: materials $48,000; direct labor $10,075 and manufacturing overhead $4,470. Costs for Department 2 are expected to be $22,355 for direct labor and $36,075 for manufacturing overhead. Management has asked you to prepare cost reports for the current year using the weighted average process costing method and a budgeted cost report for the next year, also using the weightedaverage process costing method. After completing the above, prepare the journal entries in a separate worksheet. Use the following account descriptions for your journal entries: Raw Materials Department 1 WIP Department 2 WIP Finished Goods Wages Payable Manufacturing Overhead Make sure to clearly separate the journal entries for each year. Submit the assignment as an Excel workbook using the name Excel Assignment 2_Your Last Name in the Assignments section of our Canvas course site. The workbook should contain six worksheets titled: Start Here, Year 1 Dept 1, Year 1 Dept 2, Year 2 Dept 1, Year 2 Dept 2, and Journal Entries. You must construct each worksheet so it fits on one page using portrait orientation with no scaling. Points will be deducted if I open the worksheet and have to adjust any column widths so I can see the numbers. Excel Assignment 2 Processing Costing Due Monday, October 16, 2017 (50 Points) Page 2 of 2 Pages Start Here Worksheet The first worksheet in your workbook should be named Start Here and should contain ALL of the data you need to solve the problem. This data must be clearly labeled. Your goal in laying out this worksheet is to be able to use the workbook in the future. Therefore, ALL references to data in the remaining worksheets MUST be cell references to the appropriate data in either the Start Here worksheet or in other worksheets. Hint: When setting up the Start Here worksheet add a cell for the conversion costs and reference that cell in your other worksheets. It will make your costing worksheets neater and is probably the only way you can get them to fit on one page. Year 1 Worksheets The weighted average method uses a fivestep process: 1) Summarize the Physical Flow of Goods 2) Compute the Number of Equivalent Units 3) Identify the Costs to be Accounted for 4) Calculate the Cost per Equivalent Unit 5) Assign Costs Make sure these steps are clearly labeled. Make sure to use only cell referencing to get the appropriate data from the Start Here worksheet. Year 2 Worksheets Follow the same basic layout for this worksheet as you did for the Year 1 worksheet. Journal Entries Worksheet Make sure to indent the credits. All numbers should be formatted as accounting with no decimal places. Use xx/xx/YR x as the date format. Clearly separate the sets of entries for each year. Change the layout of the page (NOT THE COLUMNS!) so the printout will be centered horizontally on the page.