Question
1. Use the chart using the Fifo method of process costing. 2. Should LogicCo's managers choose the weighted average method or the Fifo method? Explain
1. Use the chart using the Fifo method of process costing.
2. Should LogicCo's managers choose the weighted average method or the Fifo method? Explain briefly.
3. A manager has come to you with a concern that the current method of recording the spoilage in LogicCo (your solution to question 18-30 of the textbook) is actually "burying the spoilage". She is concerned that this currently used method may be unethical. Based on your answer to the question 18-30, please describe to what she is referring, when she calls it "burying the spoilage". Is it unethical and why (why not)? What negative consequences might there be as a result of our company's current method of recording spoilage costs?
Home Insert Page Layout Formulas Data Review View Physical Units (Computer Chips) 900 Direct Materials $125.766 100% | Conversion Costs $ 10.368 30% EN 2,754 2,500 490 2 Work in process, beginning inventory (September 1) 3 Degree of completion of beginning work in process 4 Started during September 5 Good units completed and transferred out during Sep 6 Work in process, ending inventory (September 30) 7 Degree of completion of ending work in process 8 Total costs added during September 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 100% $619,650 10% $253,098 15% 100% 100% 100% 100%Step by Step Solution
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