Chapter 6, Problem 49P

1.a

To determine

Determine the normal number of defective, spoiled or bikes.

1.b

To determine

Determine the abnormal number of defective, spoiled or bikes.

2 and 3.

To determine

Compute the equivalent units of each department and also compute the cost per unit of each department.

4.

To determine

Determine the production cost that are associated with

1. a. Normal spoiled units
2. b. Abnormal spoiled units
3. c. Goods units completed in the assembly department and
4. d. Ending work in process inventory in the assembly department.

5.

To determine

Explain the way applicable dollars are presented in financial statement for following items:

1. a. Normal spoiled units
2. b. Abnormal spoiled units
3. c. Completed units transferred in to packaging department.