A process costing system in your company. Direct material A is placed into production at the beginning of the process, while direct material B is placed into production at the end of the process. Inspection occurs at the end of the process, before the addition of direct material B. Normal spoilage is 5% of good units. For March the company had the following activities: Beginning work-in-process inventory 4,000 units, 30% complete Units placed in production 28,000 unit Good units completed 24,000 units Ending work-in-process inventory 6,000 units, 60% complete Cost of beginning work-in-process $10,000 ($5,500 direct material A, $4,500 conversion) Direct material A costs, current $38,000 Direct material B costs, current $26,400 Conversion costs, current $42,500 Required: Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
A process costing system in your company. Direct material A is placed
into production at the beginning of the process, while direct material B
is placed into production at the end of the process. Inspection occurs at
the end of the process, before the addition of direct material B. Normal
spoilage is 5% of good units. For March the company had the following
activities:
Beginning work-in-process inventory 4,000 units, 30% complete
Units placed in production
28,000 unit
Good units completed
24,000 units
Ending work-in-process inventory 6,000 units, 60% complete
Cost of beginning work-in-process $10,000 ($5,500 direct material A,
$4,500 conversion)
Direct material A costs, current
$38,000
Direct material B costs, current
$26,400
Conversion costs, current
$42,500
Required:
Prepare a production cost worksheet assuming that spoilage is
recognized and the weighted-average method is used.
Transcribed Image Text:A process costing system in your company. Direct material A is placed into production at the beginning of the process, while direct material B is placed into production at the end of the process. Inspection occurs at the end of the process, before the addition of direct material B. Normal spoilage is 5% of good units. For March the company had the following activities: Beginning work-in-process inventory 4,000 units, 30% complete Units placed in production 28,000 unit Good units completed 24,000 units Ending work-in-process inventory 6,000 units, 60% complete Cost of beginning work-in-process $10,000 ($5,500 direct material A, $4,500 conversion) Direct material A costs, current $38,000 Direct material B costs, current $26,400 Conversion costs, current $42,500 Required: Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education