Question 1 Azure Textiles Company makes silk banners. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. Physical Units Direct Conversion Materials Costs Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units 5,800 100% 30% 25,000 27,000 27,000 27,000 12.0% Work in process, ending (given) 500 100% 40% Cost of Work in process, beginning Costs added in current period $123,000 $87,000 500,000 380,000 Summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process, assuming the company uses i) ii) First-in-first-out method Weighted-average method.

Question 1 Azure Textiles Company makes silk banners. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. Physical Units Direct Conversion Materials Costs Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units 5,800 100% 30% 25,000 27,000 27,000 27,000 12.0% Work in process, ending (given) 500 100% 40% Cost of Work in process, beginning Costs added in current period $123,000 $87,000 500,000 380,000 Summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process, assuming the company uses i) ii) First-in-first-out method Weighted-average method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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