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Costs Material
Conversion Total
Beginning inventory
Current period
Total costs
$ 30,000
885,120
$915,120
3,600
335,088
$338,688
33,600
1,220,208
$1,253,808
UNITS
Beginning inventory (30% completeconversion)
Started
180,000
units
Completed
152,000
units
6,000 units
20,000
units
4,800 units
Required: Find ending WIP inventory, abnormal loss, and COGM. Assume
that, for conversion costs, abnormal shrinkage is 60 percent.
Units are introduced into the process in Department 1 (this is the only
material added in Department 1). Spoilage occurs continuously through the
department and normal spoilage should not exceed 10 percent of the units started.
The following production cost data are applicable for operations for May
2001:
1,000
Units started25,000
Units completed
22,000
2,800
Beginning
$1,550
Conversion
2,300
$3,850
Current period:
Material
$38,080
Conversion
78,645
116,725
$120,575
8,000
24,000
4,500
Transferred in
24,000
Conversion
4,320
$ 69,120
Current period:
Transferred in
Material`
Conversion
$113,700
53,775
11,079
178,554
$247,674
*This may not be the same amount determined for Department 1; ignore any
difference and use this figure.
Required:
a.
b.
Determine the cost per equivalent unit in each department and compute the
cost transferred out, the cost in ending inventory, and the cost of spoilage (if
necessary).
Tons of Shad employs a weighted average process costing system for its
products. One product passes through three departments (Molding, Assembly,
and Finishing) during production. The following activity took place in the
Finishing Department during March 2001:
4,200
42,000
33,600
The costs per equivalent unit of production for each cost failure area as
follows:
1.00
3.00
Required:
a.
b.
c.
d.
The portion of the total transferred in cost associated with beginning
Work in Process Inventory amounted to $18,900. What is the current period cost
that was transferred in from Assembly to Finishing?
e.
Determine the cost associated with abnormal spoilage for the month.
14,000
76,000
1,500
8,500
Required: Compute the EUP for (a) Average inventory assumption; (b) FIFO
inventory assumption