Assign costs to goods completed and transferred out, ending work-in-process inventory, and loss caused by abnormal spoilage
Question:
Assign costs to goods completed and transferred out, ending work-in-process inventory, and loss caused by abnormal spoilage for the Finishing department using the FIFO method.
The Finishing department at Mass Manufacturing, Inc., began March with 400 units in WIP (40%
completed), costing $20,000 in DM and $80,000 in conversion, and with $40,000 in transferred-in costs. They started work on 1,600 units, and ended with 500 units in WIP (20% completed). Two hundred units were spoiled. Normal spoilage at this production level is typically 120 units. Costs added during the period were $160,000 in transferred-in costs, $100,000 in DM, and $500,000 in conversion. Direct materials are added at the beginning of the Finishing process, and conversion costs are added evenly throughout the Finishing process.
Step by Step Answer:
Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison