Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. compute total normal spoilage cost. 2. what is the cost of units completed and transferred out to testing department? 3. what amount of direct
1. compute total normal spoilage cost.
2. what is the cost of units completed and transferred out to testing department?
3. what amount of direct materials costs is assigned to the ending work in process account for may?
4. what amount of conversion costs is assigned to the ending work in process account for may?
Edwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use Weighted Average method. Data for May 2021 are as follows: 24,200 units WIP, beginning inventory 5/1/2021 Direct materials (100% complete) Conversion costs (75% complete) Started during December Completed and transferred out 5/31/2021 WIP, ending inventory 5/31/2021 Direct materials (100% complete) Conversion costs (65% complete) 83,600 units 79.200 units 19,800 units Costs for December: WIP, beginning Inventory: Direct materials Conversion costs Direct materials added $ 165,000 84,480 244,640 Edwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use Weighted Average method. Data for May 2021 are as follows: 24,200 units WIP, beginning inventory 5/1/2021 Direct materials (100% complete) Conversion costs (75% complete) Started during December Completed and transferred out 5/31/2021 WIP, ending inventory 5/31/2021 Direct materials (100% complete) Conversion costs (65% complete) 83,600 units 79.200 units 19,800 units Costs for December: WIP, beginning Inventory: Direct materials Conversion costs Direct materials added $ 165,000 84,480 244,640
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started