Home Insert Page Layout Formulas Data Review View A в Physical Direct Conversion Units Materials Costs 2 Work in process, beginning inventory (April 1) Degree of completion of beginning work in process 4 Started during April 5 Good units completed and transferred out during April 6 Work in process, ending inventory (April 30) Degree of completion of ending work in process 8 Total costs added during April 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage $ 13,332 50% 2,400 $21,240 3 100% 12,000 10,800 2,160 100% 75% $97,560 $111,408 10% 100% 100% 100% 100%
LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix’s facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. LaCroix uses the weighted-average method of
Q.Summarize the total costs to account for; calculate the cost per equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.
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