1. Lux Cosmetics manufactures moisturizer, called Oasis in 11-ounce plastic bottles. Oasis is sold in a competitive market. As a result, management is very cost-conscious. Oasis is manufactured through two processes: mixing and filling. 100% of materials are added at the beginning of each process, and labor and manufacturing overhead occur uniformly throughout each process. Rebecca Garcia, new chief accountant, had extensive accounting experience with motels in the area but only limited contact with manufacturing accounting. During July, Rebecca correctly accumulated the following production quantity and cost data (see in cost report below).Rebecca then prepared a production cost report based on physical units started into production rather than equivalent units. She used the specific cost instead of weighted average cost method and forgot to assign costs to ending WIP. Her report showed a unit manufacturing cost of $14.26 per gallon of Oasis. The management of Lux Cosmetics was surprised at the high unit cost. The president comes to you, as Rebecca's top assistant, to review Rebecca's report and prepare a correct report. (c) Complete the corrected production cost report for the Mixing Department for July using the following cost information. ?Beginning WIP of $88,000 is $21,000 of material and $67,000 of conversion ??Incurred in July: materials $573,000, conversion costs $765,000. Calculate the missing items in Cost Report Below: (Show your work!) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Mixing Department Production Cost Report For the Month Ended July 31, 2025 Equivalent Units Physical Units Materials Costs (Step 1) (Step 2) 8,000 100,000 108,000 103000 (1) 5,000 108,000 Costs Unit costs (Step 3) Total cost Equivalent units Unit costs (a) ÷ (b) Costs to be accounted for Work in process, July 1 (Material of $21,000 and Conv Costs of $67,000) Started into production Total costs (a) (b) 513,000 (2) (4) (6) Materials (8) 594,000 (11) 100,000 (13) 5.94 165,900 (3) (5) (5,000 X 20%) Conversion Costs (9) 832,000 (12)90,000 (14) 9:24 Total (10) (15) $ 88,000 1,338,000 $1,426,000