Company has only one processing department and produces a single product; uses weighted-average method for product costing.  Data as follows:   Materials are added at the beginning of the process.  Inspection/testing occurs when units are 100% completed.  Labor and overhead costs are assumed to be added evenly throughout the process. NORMAL SPOILAGE is 10% of the good units completed and transferred out.   Beginning inventory units:                                                                                           2,000 units (direct materials-100% completed; conversion cost-50% completed) Units completed and transferred out                                                                      10,000 units Units in ending inventory                                                                                               1,300 units (direct materials-100% completed; conversion cost-25% completed) Total spoilage in units                                                                                                      1,200 units   Work-in-Process account cost data: Beginning inventory direct material costs:                             $    4,250 Beginning inventory conversion costs:                                    $  21,000 Costs incurred – direct materials                                               $  22,000 Costs incurred – conversion costs                                             $  71,200 ACCOUNT BALANCE                                                                        $118,450   First complete Production Report and then answer questions based on your calculations:       Total cost and cost per unit of good units transferred out:        TOTAL COST :$________________ COST/UNIT:___________________________________   Cost of abnormal spoilage: $______________________

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company has only one processing department and produces a single product; uses weighted-average method for product costing.  Data as follows:

 

Materials are added at the beginning of the process.  Inspection/testing occurs when units are 100% completed.  Labor and overhead costs are assumed to be added evenly throughout the process. NORMAL SPOILAGE is 10% of the good units completed and transferred out.

 

Beginning inventory units:                                                                                           2,000 units

(direct materials-100% completed; conversion cost-50% completed)

Units completed and transferred out                                                                      10,000 units

Units in ending inventory                                                                                               1,300 units

(direct materials-100% completed; conversion cost-25% completed)

Total spoilage in units                                                                                                      1,200 units

 

Work-in-Process account cost data:

Beginning inventory direct material costs:                             $    4,250

Beginning inventory conversion costs:                                    $  21,000

Costs incurred – direct materials                                               $  22,000

Costs incurred – conversion costs                                             $  71,200

ACCOUNT BALANCE                                                                        $118,450

 

First complete Production Report and then answer questions based on your calculations:

 

 

 

  1. Total cost and cost per unit of good units transferred out:

 

     TOTAL COST :$________________ COST/UNIT:___________________________________

 

  1. Cost of abnormal spoilage: $______________________

 

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