Answered step by step
Verified Expert Solution
Question
1 Approved Answer
20 points Save Answer The Skate Board Company uses a process cost system for making skateboard wheets. Materials are added at the beginning of the
20 points Save Answer The Skate Board Company uses a process cost system for making skateboard wheets. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work-in-process is 40 percent complete for conversion cost and at the end of the month it is 60 percent complete for conversion cost. Spoilage is detected at the end of the process. Other data for the month include: Beginning work-in-process inventory 1.600 units Units started 20,000 units Units placed in finished goods 12,000 units Ending work-in-process inventory 1.200 units Normal spoilage % on all units finished 20 percent Conversion costs $40,320 Cost of direct materials $40,000 Beginning work-in-process costs: Materials $4,000 Conversion $4.032 Degree of completion direct material 100% and conversion cost 40 % Degree of completion direct material 100% and conversion cost 60 % Required: Compute the equivalent units for each cost element. Prepare a production cost worksheet assuming that spoilage is recognized and the FIFO method is used
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