Goodheart Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Goodheart's blockbuster drug called Solcax Beginning work-in-process (40% completed) Transferred-in Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (1/3 completed) Conversion costs in beginning inventory Current conversion costs 950 units 4,600 units 430 units 230 units 4,200 units 690 units $ 5,225 $7,500 Goodheart calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted average method, answer the following question: What are the total conversion costs transferred to finished goods?
Goodheart Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Goodheart's blockbuster drug called Solcax Beginning work-in-process (40% completed) Transferred-in Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (1/3 completed) Conversion costs in beginning inventory Current conversion costs 950 units 4,600 units 430 units 230 units 4,200 units 690 units $ 5,225 $7,500 Goodheart calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted average method, answer the following question: What are the total conversion costs transferred to finished goods?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Goodheart Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information
pertains to the final department of Goodheart's blockbuster drug called Solcax.
Beginning work-in-process (40% completed)
Transferred-in
Normal spoilage
Abnormal spoilage
Good units transferred out
Ending work-in-process (1/3 completed)
Conversion costs in beginning inventory
Current conversion costs
950 units
4,600 units
430 units
230 units
4,200 units
690 units
$ 5,225
$ 7,500
Goodheart calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good
units and abnormal spoilage costs are charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered before inspection
of finished units. Materials are added at the beginning of the process. Using the weighted average method, answer the following question:
What are the total conversion costs transferred to finished goods?
Transcribed Image Text:Multiple Choice
$11,375.
$12,575.
$11,575.
$10,500.
$9,725
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