In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60% converted and reported that 8,000 units are 50% converted. Based on company’s experience, normal spoilage is anticipated to be 2% of units that reached the inspection point. The cost of abnormal spoilage, if any, is charged to period cost. Materials are added at the start of the process in Department 1 while packaging materials are added at the end of the process in Department 2. Inspection is done at the end of the process. The following unit cost per EUP is available: The cost of goods manufactured for the period is:
In June of the current year, Department 2 (last department) received 80,000 units from Department 1. At the end of the month, it completed 84,000 units, including 16,000 units in the beginning that are 60% converted and reported that 8,000 units are 50% converted. Based on company’s experience, normal spoilage is anticipated to be 2% of units that reached the inspection point. The cost of abnormal spoilage, if any, is charged to period cost. Materials are added at the start of the process in Department 1 while packaging materials are added at the end of the process in Department 2. Inspection is done at the end of the process. The following unit cost per EUP is available:
The cost of goods manufactured for the period is:
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