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Leonard Nimoy & Starfleet Associates Group manufactures components for alternative energy products (solar, wind, etc.) for multiple markets and makes many products and byproducts. The production cost report provided is for Department 1. The department does the initial component processing to allow it to be added to other circuitry boards and solar/wind electrical components. Once this step occurs, all production is transferred to the Department 2 for further development operations. ALL OF DEPARTMENT 2 OUTPUT IS SENT FOR FURTHER PROCESSING IN THE DEPARTMENT 3. Please note that all cost per unit values have been formatted to 3 decimals. The following information is available for the current month, reflecting work in the Department 2. Beginning Work in Process Units Costs of Beginning Work in Process: (31% complete conversion) 814 units Material Conversion $29,975 Ending Work in Process Units Additional Production Costs: 174% complete conversion) 456 units Material $85,261 Abnormal loss Conversion $61,174 Normal spoilage (continuous) Remaining unaccounted for units 13,206 units Transferred out units (30% = finished byproduct. 70% transferred to Department for further processing To create a new unit, 92% of materials are added at the start of production. The remaining 8% is added at the very end of processing, just prior either selling the finished product or moving to another Department for final processing. Adding the final 8% generates a computerized process in the company's ERP Production System to move the products to a finished and transferred out status. This accounting process is easily accomplished since the company implemented NetSuite as a "cloud" application. of the product transferred out, 30% of the units (generic product) and costs are sold immediately with a 60% cost markup to customers with long-term logistics contracts. These transactions are handled totally by their Customer Relationship Management (CRM) and Supply Chain Management (SCM) ERP modules. The remaining 70% of transferred out product is sent to Department 3 for final processing. Quantities Department 1 - Production Cost Report for April 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Started into Production Total Units 240 12.885 13.125 Units accounted for Transferred Out - Department Normal Spoilage Abnormal Spoilage Ending WIP Total Units 12,900 29 12 184 13,125 12.900 0 12 147.2 13.059.2 12,900 0 12 117.76 13,029.76 Total Conts Begin WIP Production Costs Total Costs Equivalent Units Unit Cost Materials S5,824 $20,949 $26,773 13,059.2 $2.050 Conversion Costs $9,436 $25,091 $34,527 13,029.76 $2.650 $15,260 $46,040 $61,3001 $4.700 Units Materials Conversion Costs Total $26,447 $34,183 $60.630 12.900 29 12 $25 S32 $56 Cost Reconciliation Schedule Costs Accounted For Transferred Out - Department 1 Normal Spoilage Abnormal Spoilage Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP - Percent complete S302 147.2 117.76 $312 $26,773 S614 $61,300 $34,527 100% 80% 100% 64% Department 1 - April 2020 Journal Entries WIP - Department 1 20,949 Raw Materials 26,773 WIP - Department 1 25,091 Payroll & MO 34,527 WIP - Department 2 60,629.775 WIP - Department 1 60,629.775 Abnormal Loss 56.4 WIP - Department 1 56.4 Begin Bal DM CC Abnormal Transfer out WIP - Department 1 15,260 20,9491 25,091 56.4 60,629.775 60,686.174 61,300 613.826 Ending Balance Report Balance 613.826 Reconciled Quantities Department 2 - Production Cost Report for April 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in. Department Total Units 12,900 12.900 Units accounted for Transferred Out - Department 2 Normal Loss Abnormal Loss Ending WIP Total Units Materials Conversion Costs $26,447 $34,183 Costs Begin WIP Transferred In - Department 1 Additional costs for production Total Costs Equivalent Units Unit Cost Total SO $65,849 SO $65,849 $26,447 $34.183 50.000 Units Materials Conversion Costs Total 0 0 0 SO SO SO 0 O Cost Reconciliation Schedule Costs Accounted For Transferred Out. Dept2/Generic Normal Loss Abnormal Loss Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP. Percent complete Finished Goods Inventory% Finished Goods Markup % Department 3 Transfer SO SO SO SO 100% 92% 100% 74% 30.00% 60.00% 70,00% Department 2 - April 2020 Journal Entries WIP - Department 2 65,848.922 WIP - Department 1 65.848.922 WIP - Department 2 Raw Materials WIP - Department 2 Payroll & MO FG - Generic Prod WIP - Department 3 WIP. Department 2 Abnormal Loss WIP - Department 2 AR Sales Cash AR Cost of goods sold Finished Goods WIP - Department 2 0 65,848.922 Begin Bal Transfer in DM CC Abnormal Transfer out 65.848.922 65,848.922 Ending Balance Report Balance 0 Error Leonard Nimoy & Starfleet Associates Group manufactures components for alternative energy products (solar, wind, etc.) for multiple markets and makes many products and byproducts. The production cost report provided is for Department 1. The department does the initial component processing to allow it to be added to other circuitry boards and solar/wind electrical components. Once this step occurs, all production is transferred to the Department 2 for further development operations. ALL OF DEPARTMENT 2 OUTPUT IS SENT FOR FURTHER PROCESSING IN THE DEPARTMENT 3. Please note that all cost per unit values have been formatted to 3 decimals. The following information is available for the current month, reflecting work in the Department 2. Beginning Work in Process Units Costs of Beginning Work in Process: (31% complete conversion) 814 units Material Conversion $29,975 Ending Work in Process Units Additional Production Costs: 174% complete conversion) 456 units Material $85,261 Abnormal loss Conversion $61,174 Normal spoilage (continuous) Remaining unaccounted for units 13,206 units Transferred out units (30% = finished byproduct. 70% transferred to Department for further processing To create a new unit, 92% of materials are added at the start of production. The remaining 8% is added at the very end of processing, just prior either selling the finished product or moving to another Department for final processing. Adding the final 8% generates a computerized process in the company's ERP Production System to move the products to a finished and transferred out status. This accounting process is easily accomplished since the company implemented NetSuite as a "cloud" application. of the product transferred out, 30% of the units (generic product) and costs are sold immediately with a 60% cost markup to customers with long-term logistics contracts. These transactions are handled totally by their Customer Relationship Management (CRM) and Supply Chain Management (SCM) ERP modules. The remaining 70% of transferred out product is sent to Department 3 for final processing. Quantities Department 1 - Production Cost Report for April 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Started into Production Total Units 240 12.885 13.125 Units accounted for Transferred Out - Department Normal Spoilage Abnormal Spoilage Ending WIP Total Units 12,900 29 12 184 13,125 12.900 0 12 147.2 13.059.2 12,900 0 12 117.76 13,029.76 Total Conts Begin WIP Production Costs Total Costs Equivalent Units Unit Cost Materials S5,824 $20,949 $26,773 13,059.2 $2.050 Conversion Costs $9,436 $25,091 $34,527 13,029.76 $2.650 $15,260 $46,040 $61,3001 $4.700 Units Materials Conversion Costs Total $26,447 $34,183 $60.630 12.900 29 12 $25 S32 $56 Cost Reconciliation Schedule Costs Accounted For Transferred Out - Department 1 Normal Spoilage Abnormal Spoilage Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP - Percent complete S302 147.2 117.76 $312 $26,773 S614 $61,300 $34,527 100% 80% 100% 64% Department 1 - April 2020 Journal Entries WIP - Department 1 20,949 Raw Materials 26,773 WIP - Department 1 25,091 Payroll & MO 34,527 WIP - Department 2 60,629.775 WIP - Department 1 60,629.775 Abnormal Loss 56.4 WIP - Department 1 56.4 Begin Bal DM CC Abnormal Transfer out WIP - Department 1 15,260 20,9491 25,091 56.4 60,629.775 60,686.174 61,300 613.826 Ending Balance Report Balance 613.826 Reconciled Quantities Department 2 - Production Cost Report for April 2020 Physical Equivalent Units Equivalent Units Units Materials Conversion Costs Units to be accounted for Begin WIP Transferred in. Department Total Units 12,900 12.900 Units accounted for Transferred Out - Department 2 Normal Loss Abnormal Loss Ending WIP Total Units Materials Conversion Costs $26,447 $34,183 Costs Begin WIP Transferred In - Department 1 Additional costs for production Total Costs Equivalent Units Unit Cost Total SO $65,849 SO $65,849 $26,447 $34.183 50.000 Units Materials Conversion Costs Total 0 0 0 SO SO SO 0 O Cost Reconciliation Schedule Costs Accounted For Transferred Out. Dept2/Generic Normal Loss Abnormal Loss Ending WIP Materials Conversion Costs Total WIP Costs Total Finished & Transferred Out WIP. Percent complete Finished Goods Inventory% Finished Goods Markup % Department 3 Transfer SO SO SO SO 100% 92% 100% 74% 30.00% 60.00% 70,00% Department 2 - April 2020 Journal Entries WIP - Department 2 65,848.922 WIP - Department 1 65.848.922 WIP - Department 2 Raw Materials WIP - Department 2 Payroll & MO FG - Generic Prod WIP - Department 3 WIP. Department 2 Abnormal Loss WIP - Department 2 AR Sales Cash AR Cost of goods sold Finished Goods WIP - Department 2 0 65,848.922 Begin Bal Transfer in DM CC Abnormal Transfer out 65.848.922 65,848.922 Ending Balance Report Balance 0 Error

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