Assignment Process Costing and Spoilage Kabana Industries manufactures widgets in two stages. The first phase of production occurs in the Assembly Department. Units are then transferred to the Finishing Department where the product is finished and packaged for shipment to distributors. This question deals with the Finishing Department. The Finishing Department adds material (Material A) to the widget as soon as it is received from the Assembly Department. Packaging material (Material B) is added when the production is 95% complete. Inspection takes place when production is 80% complete. Following is the data recorded for the Finishing Department for the month of September: Units of beginning work-in-process inventory 62,500 Units of ending work-in-process inventory 125,000 Percentage completion of units in beginning work-in-process 55% inventory Cost of Material A in beginning work-in-process inventory $690,000 Cost of Material B in beginning work-in-process inventory Transferred-in cost in beginning work-in-process inventory $675,000 Conversions costs in beginning work-in-process inventory $1,450,750 Percentage completion of units in ending work-in-process inventory 93% Costs of Material "A" added in the month of September $3,343,200 Costs of Material "B" added in the month of September $380,000 Conversion costs added during September $7,875,000 Transferred-in costs added during September $5,271,950 Units started in September 437,500 Units completed and transferred to finished goods inventory 325,700 ? Normal spoilage is 5% of all good units that pass inspection. The company pro-rates the normal spoilage between cost of goods manufactured and ending work-in-process. The company uses the weighted average method for cost assignment. Required: For September, prepare a production report, summarizing total costs to account for and assigning the costs to units completed and transferred out, to abnormal spoilage and to units in ending work-in-process. Assignment Process Costing and Spoilage Kabana Industries manufactures widgets in two stages. The first phase of production occurs in the Assembly Department. Units are then transferred to the Finishing Department where the product is finished and packaged for shipment to distributors. This question deals with the Finishing Department. The Finishing Department adds material (Material A) to the widget as soon as it is received from the Assembly Department. Packaging material (Material B) is added when the production is 95% complete. Inspection takes place when production is 80% complete. Following is the data recorded for the Finishing Department for the month of September: Units of beginning work-in-process inventory 62,500 Units of ending work-in-process inventory 125,000 Percentage completion of units in beginning work-in-process 55% inventory Cost of Material A in beginning work-in-process inventory $690,000 Cost of Material B in beginning work-in-process inventory Transferred-in cost in beginning work-in-process inventory $675,000 Conversions costs in beginning work-in-process inventory $1,450,750 Percentage completion of units in ending work-in-process inventory 93% Costs of Material "A" added in the month of September $3,343,200 Costs of Material "B" added in the month of September $380,000 Conversion costs added during September $7,875,000 Transferred-in costs added during September $5,271,950 Units started in September 437,500 Units completed and transferred to finished goods inventory 325,700 ? Normal spoilage is 5% of all good units that pass inspection. The company pro-rates the normal spoilage between cost of goods manufactured and ending work-in-process. The company uses the weighted average method for cost assignment. Required: For September, prepare a production report, summarizing total costs to account for and assigning the costs to units completed and transferred out, to abnormal spoilage and to units in ending work-in-process
