APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process cost system using the weighted-average method to determine unit costs. Bicycle parts are manufactured in the molding department and then are consolidated into a single bike unit in the molding department and transferred to the assembly department where they are partially assembled. After assembly, the bicycle is sent to the packing department.

please fill in the question marks and explain formulas

Cost per unit data for the 20-inch dirt bike have been completed through the molding department. Annual cost and production figures for the assembly department are presented in the schedules that follow.

Assembly Department Cost Data

Transferred in

Assembly

Total Cost of

From Molding

Assembly

Conversion

Dirt Bike through

Department

Materials

Cost

Assembly

Prior period costs

$90,450

$7,363

$12,621

$110,434

Current period costs

$1,318,320

$100,530

$279,014

$1,697,864

Total costs

$1,408,770

$107,893

$291,635

$1,808,298

Assembly Department Production Data

Percentage Complete

Assembly

Bicycles

Transferred-in

Materials

Conversion

Beginning inventory

3,400

100%

100%

87%

Transferred in from molding during year

49,800

100%

Transferred out to packing during year

43,000

100%

100%

100%

Ending inventory

4,600

100%

54%

87%

Defective bicycles are identified at the inspection point when the assembly labor process is 94 percent complete; all assembly materials have been added at this point. The normal rejection for defective bicycles is 6 percent of the bicycles reaching the inspection point. Any defective bicycles above the 6 percent quota are considered to be abnormal. All defective bikes are removed from the production process and destroyed.

Required:

1. Compute the number of defective, or spoiled, bikes that are considered to be:

a. Normal

b. Abnormal

a. Normal amount of defective or spoiled bikes

?

Bikes passing through assembly department

Less:

Bikes not inspected during current year

Inspection point

94%

% Completed

Units

Not Inspected This Year

Beginning work-in-process inventory

(The opening balance of work-in-process inspected this year)

87%

3,400

?

Ending work-in-process inventory

(Reached inspection point, therefore inspected this year or next)

87%

4,600

?

Bikes that reached inspection point

Normal defective/spoiled rate

Normal amount of defective/spoiled bikes

b. Abnormal amount of defective/spoiled bikes

Total bikes lost

Normal amount of defective/spoiled bikes

0

Abnormal amount of defective/spoiled bikes

2. Compute the equivalent units of production for the year for:

a. Bicycles transferred in from the molding department

b. Bicycles produced, with regard to assembly material.

c. Bicycles produced, with regard to assembly conversion.

Process Cost Report

Inspection Point

?

Whole

--Percent Complete--

Units

Transferred-in Costs

Materials

Conversion

Beginning WIP

3,400

Units started or Trans-in

49,800

Total to account for

53,200

Units Finished or Trans-out

43,000

100%

100%

100%

Normal spoilage

0

?

?

?

Abnormal spoilage

0

?

?

?

Ending WIP

4,600

100%

54%

87%

Total accounted for

EQUIVALENT UNITS: Wtd Avg Method (no. of completed units + equiv units lost + equiv units in ending WIP inv)

Transferred In

?

Materials ?

Conversion ?

3. Compute the cost per equivalent unit for the fully assembled dirt bike.

Calculating Equivalent Unit Costs:

Added by Assembly Department

Trans-in

Materials

Conversion

Total

Beginning WIP

$90,450

$7,363

$12,621

$110,434

Current Costs

$1,318,320

$100,530

$279,014

$1,697,864

TOTAL

$1,408,770

$107,893

$291,635

$1,808,298

WTAVG

Cost per EU

?

?

?

?

4. Compute the amount of the total production cost of $1,808,298 that will be associated with the following items:

a. Normal spoiled units.

b. Abnormal spoiled units.

c. Good units completed in the assembly department.

d. Ending WIP inventory in the assembly department.

COST SUMMARY - WEIGHTED AVERAGE

Finished Goods

43,000

units

Good production

?

Normal spoilage

?

TOTAL ?

Abnormal Spoilage

?

units

?

Ending WIP

4,600

units

Transferred-in

?

Materials

?

Conversion

?

?

Total Costs Accounted For ?