Reference no: EM132976672

Question - Zambo Tropical Foods manufactures premium unsweetened calamansi juice in two departments: Juicing and Bottling. In the Juicing Department, calamansi is placed into production at the beginning of the process. The juice is extracted until midway into the production process. At that point, the juice is completely extracted from the calamansi and enough water is added to produce a 40% calamansi juice solution. The solution is processed further and is transferred to the Bottling Department upon completion. Labor and overhead are incurred continuously throughout the process. The Juicing Department had 4,000 gallons in process at the beginning of the period at 25% completion and 6,000 gallons in process at the end of the period at 80% completion. Enough calamansi to produce 40,000 gallons of concentrate was placed in production at the start of the period. To ensure the high quality of their calamansi juice, units are inspected immediately before and immediately after the addition of water in the process. The acceptable spoilage rate, computed on gallons to be inspected, is 5% at each inspection point; however, the spoilage rate was 15% at the first inspection point and 10% at the second inspection point. After the second inspection point, another 8,000 gallons were reworked and deemed irregular. The rest of the units were transferred out to the Bottling Department.

REQUIRED - Under both FIFO and WAVE cost flow assumptions, prepare the Units to Account For, Units Accounted For and EUP sections of the cost of production report, and the basis for normal spoilage allocation at both inspection points.