Question 3 (8 points) Big Cheese Inc. has four processing departments through which all product flows. Information for Department 2 for the most recent month is as follows: . Beginning work in process inventory in Department 2 consisted of 8,000 units that were 70% complete. During the month, 42,000 units were received from Department 1. 41,000 good units were completed and transferred to Department 3. At the end of the month, 8,200 units in Department 2 were 80% complete. Remaining units were considered normal spoilage. When the units are complete, they are inspected and all material is then added to the good units. Normal spoilage is charged to manufacturing overhead. Required: 1. Prepare the first portion of the production report for Department 2: Quantity Schedule and the Equivalent Units of Production (headings not required). (7 marks) 2. Why is the above costing system appropriate for this company? (1 mark) Format Question 3 (8 points) Big Cheese Inc. has four processing departments through which all product flows. Information for Department 2 for the most recent month is as follows: . Beginning work in process inventory in Department 2 consisted of 8,000 units that were 70% complete. During the month, 42,000 units were received from Department 1. 41,000 good units were completed and transferred to Department 3. At the end of the month, 8,200 units in Department 2 were 80% complete. Remaining units were considered normal spoilage. When the units are complete, they are inspected and all material is then added to the good units. Normal spoilage is charged to manufacturing overhead. Required: 1. Prepare the first portion of the production report for Department 2: Quantity Schedule and the Equivalent Units of Production (headings not required). (7 marks) 2. Why is the above costing system appropriate for this company? (1 mark) Format