Arowana Company assembles products in its Assembly Department. At the beginning of October, the department had 20,000 units that were 60% complete. The costs associated with this inventory included direct materials cost of $150,000 and $200,000 for conversion costs. The department started 50,000 new units during the month. At the end of the month, the department transferred out 55,000 good units and had 8,000 good units remaining that were not completed. Costs incurred during the month were $400,000 for direct materials and $1,200,000 for conversion costs. The units that were not completed at the end of the month were at the 30% stage of completion. Direct materials and conversion costs are added evenly throughout the process. Normal spoilage, if any, is expected to be a maximum of 10% of the total units in the work in process during a month. All other spoilage is considered to be abnormal. All spoilage is detected at the 80% stage of completion. REQUIRED: Using the attached forms, prepare a cost of production report for Arowana Company for the month of October, using the FIFO cost flow assumption. Round all costs per equivalent unit to five decimal places and all other dollar amounts to the nearest whole dollar.

Arowana Company assembles products in its Assembly Department. At the beginning of October, the department had 20,000 units that were 60% complete. The costs associated with this inventory included direct materials cost of $150,000 and $200,000 for conversion costs. The department started 50,000 new units during the month. At the end of the month, the department transferred out 55,000 good units and had 8,000 good units remaining that were not completed. Costs incurred during the month were $400,000 for direct materials and $1,200,000 for conversion costs. The units that were not completed at the end of the month were at the 30% stage of completion. Direct materials and conversion costs are added evenly throughout the process. Normal spoilage, if any, is expected to be a maximum of 10% of the total units in the work in process during a month. All other spoilage is considered to be abnormal. All spoilage is detected at the 80% stage of completion. REQUIRED: Using the attached forms, prepare a cost of production report for Arowana Company for the month of October, using the FIFO cost flow assumption. Round all costs per equivalent unit to five decimal places and all other dollar amounts to the nearest whole dollar.

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Description: please help me Arowana Company assembles products in its Assembly Department. At the beginning of October,the department had 20,000 units that were 60% complete. The costs associated with this inventoryincluded direct materials cost of $150,000 and $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 9PA: The packaging department began the month with 500 units that were 100% complete with regard to...

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