1 3 . . . . . . 4 . . . . . . 5 . Question 5: (17 marks) (30 minutes) The Blending Department of Star Company has the following cost and production data for the month of April bonsues Cost Work in process, April 1 Direct materials: 100% complete Conversion costs: 20% complete Cost of work in process. April 1 $35,000 25,000 $60.000 Cost incurred during production in April Direct materials Conversion costs Costs incurred in April $105,000 135.000 240.000 Units at the beginning work in process was 7,000 units. Started into production is 28,000 units. Ending work in process was 5,000 units that were 100% complete as to materials and 40% complete as to conversion costs. Instructions Page 4 of 5 1. Prepare a production cost report for the month of April for Blending Department. (14 marks) 2. The company provides incentives to its department managers by paying monthly bonuses based on their success in controlling costs per equivalent unit of production. Assume that the production department underestimates the percentage of completion for units in the ending inventory with the result that its equivalent units of production in ending inventory for April are understated. What impact does this error have on the January bonuses paid to the production managers? What impact if any does this error have on May bonuses