Louisa 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 Mintia.Beginning work-in-process (40% completed)1,025unitsTransferred-in4,900unitsNormal spoilage445unitsAbnormal spoilage245unitsGood units transferred out4,500unitsEnding work-in-process (1/3 completed)735unitsConversion costs in beginning inventory$ 3,250 Current conversion costs$ 7,800 Louisa 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 Mintia 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 equivalent units for conversion costs?

Calculation of Total Units to Account ForTotal Units = Beginning WIP + Transferred-in = 1,025 +…

Answered: Louisa Pharmaceutical Company is a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 3PA: Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired...

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Louisa 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 Mintia.

Beginning work-in-process (40% completed)	1,025	units
Transferred-in	4,900	units
Normal spoilage	445	units
Abnormal spoilage	245	units
Good units transferred out	4,500	units
Ending work-in-process (1/3 completed)	735	units
Conversion costs in beginning inventory	$ 3,250
Current conversion costs	$ 7,800

Louisa 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 Mintia 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 equivalent units for conversion costs?

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