P, August 1 (1/4 done as to conversion costs) 100,000 Started in August 740,000 Transferred out during August 610,000 Spoiled units 80,000 Cost of Beginning work-in process: Material
The production data for Department 1 for August 2015 are as follows:
Actual Units
WIP, August 1 (1/4 done as to conversion costs) 100,000
Started in August 740,000
Transferred out during August 610,000
Spoiled units 80,000
Cost of Beginning work-in process:
Materials 1,250,000
Conversion Costs 150,000
Current Costs:
Materials 7,400,000
Conversion Costs 4,710,000
Unit costs:
Materials ?
Conversion Costs 6
Materials are added at the start of the process.
Conversion costs are added evenly during the process.
The company uses the FIFO method of costing.
Inspection occurs, when production is 100% complete.
Normal spoilage is 11% of good units transferred out during August.
Req: What is the cost allocated to next department, work-in-process end in Department 1, and period cost?
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