gambler company produces a product by way of three consecutive processes. the following data relates to Process 3 for the month of April.
During April, 30,000 units valued at $29.55 each were transferred from Process 2 to Process 3.
Other costs incurred during the month were:
Direct Materials added $309,000
Direct Labour $458,600
Manufacturing Overhead $391,400

Normal losses are estimated to be 5% of the units transferred in from Process 2. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $40 each.

At inspection, 4,000 units were rejected as scrap. These units had reached the following degree of completion:

Transfer from Process 2 100%
Direct material added 80%
Conversion costs 60%

Work-in-progress at the end of April was 5000 units and had reached the following degree of completion:

Transfer from Process 100%
Materials added 55%
Conversion costs 50%

There were no incomplete units in Process 3 at the beginning of the period.

Materials added and conversion costs are incurred evenly throughout the process.

Required:
a) Complete the template given to determine the equivalent units for direct materials (From Process 2 & Materials added) and conversion costs.

b) Compute:

The total cost of the units completed and transferred out
Cost of the unexpected losses
Cost of ending work in process inventory in Process 3

d) Prepare the Work in Process Inventory-Process 3 T-account, claerly showing the ending balance.

e) State the journal entries to record the assignment of direct materials, and direct labour, the allocation of manufacturing overhead to the process and to record the cost of the units completed and transferred out to Finished Goods.