Company has only one processing department and produces a single product; uses weighted-average method for product costing. Data as follows: Materials are added at the beginning of the process. Inspection/testing occurs when units are 100% completed. Labor and overhead costs are assumed to be added evenly throughout the process. NORMAL SPOILAGE is 10% of the good units completed and transferred out. Beginning inventory units: 2,000 units (direct materials-100% completed; conversion cost-50% completed) Units completed and transferred out 10,000 units Units in ending inventory 1,300 units (direct materials-100% completed; conversion cost-25% completed) Total spoilage in units 1,200 units Work-in-Process account cost data: Beginning inventory direct material costs: $ 4,250 Beginning inventory conversion costs: $ 21,000 Costs incurred – direct materials $ 22,000 Costs incurred – conversion costs $ 71,200 ACCOUNT BALANCE $118,450 First complete Production Report and then answer questions based on your calculations: Total cost and cost per unit of good units transferred out: TOTAL COST :$________________ COST/UNIT:___________________________________ Cost of abnormal spoilage: $______________________
Company has only one processing department and produces a single product; uses weighted-average method for product costing. Data as follows:
Materials are added at the beginning of the process. Inspection/testing occurs when units are 100% completed. Labor and overhead costs are assumed to be added evenly throughout the process. NORMAL SPOILAGE is 10% of the good units completed and transferred out.
Beginning inventory units: 2,000 units
(direct materials-100% completed; conversion cost-50% completed)
Units completed and transferred out 10,000 units
Units in ending inventory 1,300 units
(direct materials-100% completed; conversion cost-25% completed)
Total spoilage in units 1,200 units
Work-in-
Beginning inventory direct material costs: $ 4,250
Beginning inventory conversion costs: $ 21,000
Costs incurred – direct materials $ 22,000
Costs incurred – conversion costs $ 71,200
ACCOUNT BALANCE $118,450
First complete Production Report and then answer questions based on your calculations:
- Total cost and cost per unit of good units transferred out:
TOTAL COST :$________________ COST/UNIT:___________________________________
- Cost of abnormal spoilage: $______________________
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