Case 3Keener Company manufactures a specialized product. Department 2 adds newmaterial to the units received from Department 1 at the end of process. A normal lossoCcurs early in processing. Production and cost data for Department 2 for the month ofSeptember are as follows:Production record (in units):In process, September 1-75% complete forprocessing cost4,000 Received from Department 1Completed and transferred to finished goodsLost in processing (normal)In process, September 30-2/3 complete for20,00016,0002.0006,000process costCost Record:Work in process inventory, September 1:Preceding department costProcessing costCost from preceding department in SeptemberMaterial cost for SeptemberProcessing cost for September$ 6202.000$2.6201.8004,80010,200Required: Determine the following for Department 2 under (a) weighted average themethod of costing and (b) the FIFO method of costing: (1) unit costs for each costcomponent, (2) cost of production transferred to finished goods. (3) cost of work inprocess inventory of September 30.

Name: Case 3Keener Company manufactures a specialized product. Department 2
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Description: Case 3Keener Company manufactures a specialized product. Department 2 adds newmaterial to the units received from Department 1 at the end of process. A normal lossoCcurs early in processing. Production and cost data for Department 2 for the month of

1. Following is the calculation of unit cost for each cost component by using the Weighted average…

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Case 3 Keener Company manufactures a specialized product. Department 2 adds new material to the units received from Department 1 at the end of process. A normal loss OCCUIS early in processing. Production and cost data for Department 2 for the month of September are as follows: Production record (in units): In process, September 1-75% complete for processing cost 4,000

Case 3 Keener Company manufactures a specialized product. Department 2 adds new material to the units received from Department 1 at the end of process. A normal loss OCCUIS early in processing. Production and cost data for Department 2 for the month of September are as follows: Production record (in units): In process, September 1-75% complete for processing cost 4,000

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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Subject: Cost Accounting
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