The cost of goods manufactured for the period is In June of the current year, Department 2 (last department) received 80,000 units from Department 1. Atthe end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60%converted and reported that 8,000 units at the end are 50% converted. Based on company's experience,normal spoilage is anticipated to be 2% of units that reached the inspection point. The cost of abnormalspoilage, if any, is charged to period cost. Materials are added at the start of the process in Department 1while packaging materials are added at the end of the process in Department 2. Inspection is done at theend of the process. The following unit cost per EUP is available:Cost componentCosts last monthCosts this monthPrior departmentP6.50P3.50Direct materials1.202.00Conversion costs3.005.00

In June of the current year, Department 2 (last department) received 80,000 un the end of the month, it completed 84,000 units, including 16,000 units in ti converted and reported that 8,000 units at the end are 50% converted. Based normal spoilage is anticipated to be 2% of units that reached the inspection po spoilage, if any, is charged to period cost. Materials are added at the start of th while packaging materials are added at the end of the process in Department 2 end of the process. The following unit cost per EUP is available: Cost component Costs last month Costs this mon

In June of the current year, Department 2 (last department) received 80,000 un the end of the month, it completed 84,000 units, including 16,000 units in ti converted and reported that 8,000 units at the end are 50% converted. Based normal spoilage is anticipated to be 2% of units that reached the inspection po spoilage, if any, is charged to period cost. Materials are added at the start of th while packaging materials are added at the end of the process in Department 2 end of the process. The following unit cost per EUP is available: Cost component Costs last month Costs this mon

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 11E

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