Star Plastic company produces plastic cups. table below are the data for April 2019. Star Plastic uses the weighted average method for inventory calculations. raw materials are added at the beginning of the production process while conversion costs are added evenly throughout the process. calculate equivalent units (EU) for DIRECT MATERIALS Direct Physical Units Conversion Materials Costs Work in process, beginning inventory (April 1) Degree of completion of beginning work in process Started during April Good units completed and transferred out during April Work in process, ending inventory (April 30) Degree of completion of ending work in process |Total costs added during April Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 2,400 $21,240 $ 13,332 100% 50% 12,000 10,800 2,160 100% 75% $97,560 $111,408 10% 100% 100% 100% 100%

Star Plastic company produces plastic cups. table below are the data for April 2019. Star Plastic uses the weighted average method for inventory calculations. raw materials are added at the beginning of the production process while conversion costs are added evenly throughout the process. calculate equivalent units (EU) for DIRECT MATERIALS Direct Physical Units Conversion Materials Costs Work in process, beginning inventory (April 1) Degree of completion of beginning work in process Started during April Good units completed and transferred out during April Work in process, ending inventory (April 30) Degree of completion of ending work in process |Total costs added during April Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 2,400 $21,240 $ 13,332 100% 50% 12,000 10,800 2,160 100% 75% $97,560 $111,408 10% 100% 100% 100% 100%

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Description: Star Plastic company produces plastic cups. table below are the data for April2019. Star Plastic uses the weighted average method for inventory calculations.raw materials are added at the beginning of the production process whileconversion costs are

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Star Plastic company produces plastic cups. table below are the data for April
2019. Star Plastic uses the weighted average method for inventory calculations.
raw materials are added at the beginning of the production process while
conversion costs are added evenly throughout the process. calculate equivalent
units (EU) for DIRECT MATERIALS
Physical
Units
Direct
Conversion
Materials
Costs
$ 13,332
Work in process, beginning inventory (April 1)
Degree of completion of beginning work in process
Started during April
Good units completed and transferred out during April
Work in process, ending inventory (April 30)
Degree of completion of ending work in process
Total costs added during April
Normal spoilage as a percentage of good units
Degree of completion of normal spoilage
Degree of completion of abnormal spoilage
2,400
$21,240
100%
50%
12,000
10,800
2,160
100%
75%
$97,560
$111,408
10%
100%
100%
100%
100%

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