Question 8.5 Downward Dog Yoga is a manufacturer of yoga apparel. It produces all of its products in one department. The information for the current month is as follows:   Beginning work-in-process 20,000 units Units started 40,000 units Units completed 50,000 units Ending work-in-process 8,000 units Spoilage 2,000 units   Beginning work-in-process direct materials $12,000 Beginning work-in-process conversion   $4,000 Direct materials added during month $60,000 Direct manufacturing labour during month $20,000 Beginning work-in-process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50 percent of direct manufacturing labour. Ending work-in-process was 60 percent complete. All spoilage is normal and is detected at end of the process. Required: Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 8.5

Downward Dog Yoga is a manufacturer of yoga apparel. It produces all of its products in one department. The information for the current month is as follows:

 

Beginning work-in-process

20,000 units

Units started

40,000 units

Units completed

50,000 units

Ending work-in-process

8,000 units

Spoilage

2,000 units

 

Beginning work-in-process direct materials

$12,000

Beginning work-in-process conversion

  $4,000

Direct materials added during month

$60,000

Direct manufacturing labour during month

$20,000

Beginning work-in-process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50 percent of direct manufacturing labour. Ending work-in-process was 60 percent complete. All spoilage is normal and is detected at end of the process.

Required:

  1. Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
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