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APCO Company manufectures vanious tnes of bicycles. Because of the high volurne of each tne, the company employs a process costing system using the weighted-average
APCO Company manufectures vanious tnes of bicycles. Because of the high volurne of each tne, the company employs a process costing system using the weighted-average method. 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 assembled After assembly. the bicycle is sent to the packing department. Annual cost and production agures for the assembly department are presented in the schedules below are identified at the inspection point when the ossembly labor process's 70% complete all assembly meteres hve been added at this point The norrnal rejection rate for detectve booes is 5% of the beyoes reading me inspection port Any defective bicycles above and destroyed the 5% quota are considered to be abnormal All defective bikes are removed Som me proooon process Assembly Department Coat Data Transferred-in Total Cost of from Molding Assembly Assembly Bike through Department Materials Conversion Ansembly S 106,070 1, 579, 270 s252, 1201,685,340 Prior pexiod eostn Current period $86,200 S 7,260 12,610 1,241,000 98,760239,510 106,020 Assenbly Department Production Data Percentage Complete Assenbly Asambly Bicycles Transferred-in Materials-Comme 3,040 Tzansferred-in from molding during year 49,000 Transterzed out to packing during year , 000 1001 100 100 100 100% 100 50 200 20 Ending inventory 4,080 Compute the number of defective, or spoiled, bikes that are considered to be a. Normal spoilage. b. Abnormal spoilage. Normal spoilege Abnormal spoilege
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