Question: Right Man Ltd. has five processing departments through which all products flow. Information for Department 2 for the most recent month is as follows: -

 Right Man Ltd. has five processing departments through which all products

Right Man Ltd. has five processing departments through which all products flow. Information for Department 2 for the most recent month is as follows: - Beginning work in process inventory in Department 2 consisted of 4,000 units that were 50% complete. - During the month, 25,000 units were received from Department 1. - 19,000 good units were completed and transferred to Department 3. - At the end of the month, 8,500 units in Department 2 were 60% complete. Remaining units were considered normal spoilage. - At the end of the process the units are inspected, and all material is 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 (heading not required). (7 marks) 2. Why is the above costing system appropriate for this company? (1 mark)

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