Comprehensive Problem-Weighted-Average Method - Villa Products, located in Chicago, uses the weighted- average method in its process costing system. It manufactures a product called Worzel that goes through three processing stages prior to completion. Information on work in the first department, Cleaning, is given below for May: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 100,000 Pounds started into production during May 350,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 80% complete; conversion 20% complete Cost data: 30,000 Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost Required (SHOW YOUR WORK): $ 88,400 $ 22,240 $ 400,000 $80,000 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May. 6. Prepare the journal entry to record the material and conversion costs added to production this period (assume conversion costs are 40% direct labor costs and 60% overhead costs). 6. Prepare the journal entry to record the material and conversion costs added to production this period (assume conversion costs are 40% direct labor costs and 60% overhead costs) 7. 8. Prepare the journal entry to record the cost of the units completed and transferred out to the Mixing Department. Prepare a T-account for the WIP account for the Cleaning Department. Short answer questions. Answer the following questions in your own words. Feel free to look them up in the book but please re-word them in your own words to show you understand what you are saying - I advise against googling answers for this class because not all internet answers are in the same format or use the same terminology as your author, and that is why I suggest you look them up in your text or listen for the answers in the lecture videos. Always answer these types of questions in complete sentences and paragraphs. 1. 2. What is the main factor for a company in choosing between job order and process costing? Describe two likely businesses that would use job order costing and two likely businesses that would use process costing. Explain in very simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing