Required: (a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (From Process 1 & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs. (b) Calculate the: Total cost of units completed and transferred to Finished Goods inventory Cost of abnormal losses Cost of ending work-in-process inventory in Process 2 (c) Prepare Better Choice's Work-In-Process Inventory - Process 2 T-account, clearly showing the ending balance. State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process 2. Also give the journal entries to record the cost of goods completed and transferred to finished goods. (d) Given that 20% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Better Choice's true loss. (e)
Required: (a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (From Process 1 & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs. (b) Calculate the: Total cost of units completed and transferred to Finished Goods inventory Cost of abnormal losses Cost of ending work-in-process inventory in Process 2 (c) Prepare Better Choice's Work-In-Process Inventory - Process 2 T-account, clearly showing the ending balance. State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process 2. Also give the journal entries to record the cost of goods completed and transferred to finished goods. (d) Given that 20% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Better Choice's true loss. (e)
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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