Mickys Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units.

The following details relate to production for the month of October 2020, for the Baking Department.

i) Work-in-process, October 1: -0-

ii) Transfer from Moulding: 2,000 units valued at $336.40 each

iii) Other manufacturing costs incurred during October:

- Direct material added: $202,120

- Direct Manufacturing Wages: $212,840

- Manufacturing Overhead Applied: $306,160

iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each.

v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:

- From Moulding: 100%

- Direct material added: 40%

- Conversion costs: 12%

vi) 1,200 pieces were completed and transferred out to the Spraying Department.

vii) Work-in-process at the end of October had reached the following degree of completion:

- From Moulding: 100%

- Direct material added: 70%

- Conversion costs: 55%

Direct materials added and conversion costs are incurred uniformly throughout the process.

Answer the following questions in the boxes provided

(a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs

	Units To Account For	Units Accounted For	Transfer From Moulding	Direct Materials Added	Conversion Costs
Beginning WIP	0
Equivalent Units

Finding the Cost Per Equivalent Unit

Transfer from Moulding	=	=
Direct Materials Added	=	=
Conversion Costs	=	=
Total Cost per Completed Unit	=	=

(b) Calculate the following three sub-questions:

- Total cost of units completed and transferred to the Spraying Department

- Cost of abnormal losses

- Cost of ending work-in-process inventory in the Baking Department

Cost of Units Transferred to Spraying	=
	=
Abnormal Losses	=
	=
	=
Cost of Ending WIP Inventory	=
	=
	=

(c) Prepare Micky Pottery's Work-In-Process Inventory Baking Department T-account, clearly showing the ending balance.

Description	Units	$	Description	Units	$
Beginning WIP		0
Transfer from Moulding	?	?
Direct Materials Added		?
Direct Labour		?
Manufacturing O/H		?