Please answer the May general ledger and the analysis.

AutoSave O Off) Project 5 Process Costing - Excel Sign in X File Home Insert Page Layout Formulas Data Review View Developer Smart View Help Acrobat Search Share Comments LO X Calibri 11 AA ab Wrap Text General Insert Ex AY O Paste Cell Delete ~ BIU - E CEE Merge & Center $ ~ % " Conditional Format as Sort & Find & Ideas Sensitivity Formatting ~ Table Styles [Format Filter * Select v Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A SECURITY WARNING Automatic update of links has been disabled Enable Content T46 V fx A B C E F G H J K M N 0 P Q R S T U W X 28 WIP Inventory- Blending Beg FG d) What is the total cost balance in ending Finished Goods Inventory? 29 WIP Inventory- Forming + Mad 30 Finished Goods Inventory -Sold ) Although the production manager said that the units in WIP at the end of May were 80%% of the way through the 31 = End FG process, the controller knows that figure is somewhat subjective. She has talked to the assistant production manager, who believes the units were only about 60% complete. She wants you to run your spreadsheet using 60% as the percent 32 5A) Total cost per unit of completion to see what impact the estimate has on A) total cost per unit, and B) the company's income statement 33 for the month 34 35 IMPORTANT: BEFORE doing the analysis in Step 5, copy your May production cost report worksheet to a new tab and 36 rename it "what-if 609%?" To do this, right click on the May tab at the bottom of the screen and choose "move or copy" 37 then check the box, "make a copy". Then right click on the new copied spreadsheet and choose "rename". 38 58 5A) Calculate the total cost per unit, using 609% as the percentage of completion. 39 Henkel Industries 56) Complete the company's income statement for the month, using 60% as the percentage of completion. 40 Income Statement 5C) Calculate the difference in operating income between the two possible percentages of completion (80%% vs 50%] 41 For the Month Ending May 31 5DJ Briefly explain WHY the difference in income occurs. 42 Per unit Total SE) In general, if managers want to inflate earnings in a particular period, what could they do? 43 6) Finally, check the Grading Rubric worksheet to make sure you have completed all requirements. Then save your file and upload it to Canvas. 45 46 47 48 5C Lower or higher wher 49 Difference in operating income 60% is used? 50 50 51 58 52 Briefly explain the reason for the difference. 53 If managers want to inflate earnings in a particular period, what can they do? 54 55 56 . . . May Forming Dept Cost Report May General Ledger Additional Analysis + Ready EO + 70%AutoSave O Off) Project 5 Process Costing - Excel Sign in X File Home Insert Page Layout Formulas Data Review View Developer Smart View Help Acrobat Search Share Comments LO X Calibri 11 AA ab Wrap Text General Insert Ex AY O Delete ~ Paste BIU ~ CEE Merge & Center $ ~ % " Conditional Format as Cell Formatting ~ Table Styles [Format Sort & Find & Ideas Sensitivity Filter * Select v Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A SECURITY WARNING Automatic update of links has been disabled Enable Content F13 A C E F G H K L M N 0 F Q R S T U W X Additional analysis DIRECTIONS Now that you have completed the production cost report, the controller would like you to do a few more tasks. Use the 1) Journal entry needed space at the left to document your responses. WIP- Forming WIP- Blending IMPORTANT NOTE: Every figure on this spread sheet (dollar amounts and units) should be cell referenced from elsewhere (not typed in) EXCEPT for the blue boxes (number of units sold, Sales price per unit, and WIP-Forming End units and cost). Line labels and account names will need to be typed in. To reference a cell in another worksheet, first 2) Total cost per unit: select the cell where you want the answer and type =. Then, select the cell you want to get from a different sheet, and hit the Enter button. 11 1) How much cost, in total, needs to get transferred to the Forming Department? Complete the journal entry with the appropriate amount 13 2) The controller wants to know the cost of making one unit of product in May, from START to FINISH (including both 14 the Blending and Forming Departments). Show your calculations by listing each of the costs per EU from all of the 3) departments that make up the total cost (e.g., Blending DM, Blending CC, etc.). FORMAT the cost per unit in dollars Henkel Industries and cents and HIGHLIGHT the total cost per unit (use the spilling paint bucket icon to fill in the cell with neon yellow Income Statement Units Sold Sales pricelunit color. For the Month Ending May 31 3) The controller would like you to prepare a draft of the company's income statement. In addition, she would like to Per unit Total see the sales price per unit, cost per unit, and gross profit per unit. Hint: See general ledger for the information about transactions that occurred during the month. Make sure you format everything in dollars and cents. 4) At the beginning of May, the company had no Finished Goods inventory and no WIP in the Forming Department. All units transferred out of the Blending Dept. in May also made it completely through the Forming Dept. in May. 24 The controller would like you to prepare an analysis of the company's ending WIP and FG inventory at May 31. 25 The controller wants to know the following : ) How many units are in each Department's ending WIP Inventory? 26 4) what is the cost balance for each Department's ending WIP Inventory? 27 Inventory Analysis Ending Units Total Cost conciling UNITS in End FG () How many units are in ending Finished Goods Inventory? (Use side purple box to figure it out.) 28 WIP Inventory- Blending Beg FG d) what is the total cost balance in ending Finished Goods Inventory? WIP Inventory- Forming + Made Finished Goods Inventory -Solo 6) Although the production manager said that the units in WIP at the end of May were 80%% of the way through the = End FG process, the controller knows that figure is somewhat subjective. She has talked to the assistant production manager, 5A) Total cost per unit who believes the units were only about 60%% complete. She wants you to run your spreadsheet using 60%% as the percent of completion to see what impact the estimate has on A] total cost per unit, and B) the company's income statement 33 for the month May Forming Dept Cost Report May General Ledger Additional Analysis + + 70%AutoSave O Off) Project 5 Process Costing - Excel Sign in X File Home Insert Page Layout Formulas Data Review View Developer Smart View Help Acrobat Search Share Comments X Calibri 11 AA ab Wrap Text General Insert Ex AY O Paste BIU ~ CEE Merge & Center $ ~ % " Conditional Format as Cell Delete ~ [Format Sort & Find & Ideas Sensitivity Formatting ~ Table Styles Filter * Select v Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A SECURITY WARNING Automatic update of links has been disabled Enable Content X D35 X A B C D E F G H I J K L M N WNE Department Data Production Cost Report: Blending Department Information about units: FLOW OF UNITS Physical Units DM EU Conversion EU Units in Beginning WIP 25,000 Units to account for: Started during month 20,000 Beginning work in process 25,000 Units in Ending WIP 30,000 Started in production 220,000 Total units to account for S 245,000.00 7 Percentage of completion of Ending WIP: LD 00 Direct material 100% Units accounted for: Conversion (DL and MOH) 80% Completed and transferred out 215,000 215000 215000 10 Ending WIP 80,000 80000 24000 11 Costs in Beginning WIP Total units accounted for S 245,000.00 | $ 245,000.00 239,000.00 12 DM in beginning WIP $ 132,500 13 Conversion costs in beginning WIP S 78,300 FLOW OF COSTS Total DM Conversion 14 Costs to account for: 15 Cost information for the current month: Beginning work in process $ 210,800 $ 132,500 | $ 78,300 16 DM traced to Dept during the month $ 1,153,750 Costs added during month S 1,816,350 $ 1,153,750 |$ 562,600 17 DL traced to Dept during the month S 45,000 Total costs to account for S 2,027,150.00 $ 1,286,250.00 S 740,900.00 18 MOH allocated to dept during the month $ 617,600 19 Cost per equivalent unit 5.25 $ 3.10 20 21 NOTE: The blue box contains the data you'll need for completing the Production Cost Costs accounted for: 22 Report (tan box). Certain figures in the blue Completed and transferred out $ 1,795,250.00 $ 1,128,750.00 $ 666,500.00 23 box must be typed in. Other figures in the Ending WIP S 231,900.00 | $ 157,500.00 | $ 74,400.00 24 blue box can be cell referenced from another Total costs accounted for S 2,027,150.00 |$ 1,286,250.00 S 740,900.00 25 worksheet (= cell address). ALL ... May Blending Dept Cost Repo April Blending Dept Cost Report May Forming Dept Cost Report ..+ : " + 90%AutoSave O Off) Project 5 Process Costing - Excel Sign in X File Home Insert Page Layout Formulas Data Review View Developer Smart View Help Acrobat Search Share Comments Insert LO X Calibri 11 AA ab Wrap Text General Ex AY O Delete ~ Paste BIU - CE E Merge & Center $ ~ % " Conditional Format as Cell Formatting * Table Styles Format Sort & Find & Ideas Sensitivity Filter * Select v Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A SECURITY WARNING Automatic update of links has been disabled Enable Content D14 X V fx A B C E F G H J K L M N 0 P Q R S 28 Wages Payable $ 275,000 29 to record salaries and wages of selling. general and 30min. staff? 30 31 Rent Expense $ 25,000 32 Rent Payable 25,000 34 35 Insurance Expense $ 30,000 36 Prepaid Insurance 30,000 37 /to recordinswanee on saving general and admin. Banking/ 38 39 Accounts Receivable $ 3,600,000 40 Sales Revenue $3,600,000 42 43 Utilities Expense 10,000 44 Utilities Payable 10.000 45 /to recordInswanee on sawin general. and admin. Bunking 46 47 Advertising expense $ 120,000 48 Accounts Payable $ 120.000 50 51 52 53 54 55 56 57 58 59 April Blending Dept Cost Report May Forming Dept Cost Report May General Ledger Addition.. + + 70%AutoSave O Off) Project 5 Process Costing - Excel Sign in X File Home Insert Page Layout Formulas Data Review View Developer Smart View Help Acrobat Search Share Comments LO X Calibri 11 AA ab Wrap Text General Insert Ex AY O Paste BIU - CEE Merge & Center $ ~ % " Conditional Format as Cell Delete ~ Format Sort & Find & Ideas Sensitivity Formatting ~ Table Styles Filter * Select v Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A SECURITY WARNING Automatic update of links has been disabled Enable Content D14 X V fx A B C E F G H K L M N 0 P Q R S May General Journal Entries- Partial list Use a formula to find the total operating WIP-Blending 45,000 expenses for the month Wages Payable (0 record In racedto the Blanding Dept. For Income Statement: Total Operating Expenses = 7 WIP-Blending $ 1,153,750 Raw materials inventory $ 1,153,750 10 REMEMBER: 11 WIP-Blending $ 617,600 12 MOH $ 617,600 Asset and Expense accounts are increased through debits (first line of a journal entry; left column of numbers) 13 (40 record AVN allocated to the Banding Daga 14 Liabilities and Revenue accounts are increased through credits (second line of a journal entry; right column of numbers) 15 WIP- Forming $ 750,000 16 Wages Payable $ 750,000 (Parenthetical explanation of transaction is listed below each journal entry) 17 18 19 WIP-Forming $ 45,000 20 Raw materials inventory $ 45,000 21 (D NOON DAY based In the Forning Ogot 22 23 WIP- Forming $ 617,600 24 MOH- Forming $ 617,600 25 (43 Nood /VM alocated to the Forning Dept 26 27 Salary Expense $ 275,000 28 Wages Payable $ 275,000 29 30 31 Rent Expense $ 25,000 32 Rent Payable 25,000 April Blending Dept Cost Report May Forming Dept Cost Report May General Ledger Addition.. + + 70%