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Case 6-20 Effect of Incorrect Costing across Departments-Weighted-Average LO5] Tavia Limited manufactures a plastic gasket that is used in automobile engines. The gaskets go through
Case 6-20 Effect of Incorrect Costing across Departments-Weighted-Average LO5] Tavia Limited manufactures a plastic gasket that is used in automobile engines. The gaskets go through t Mixing, Forming, and Stamping. The company's accountant (who is very inexperienced) has prepared a st costs for the Forming Department for October, as follows: Consists of cost transferred in, \$16,275; materials cost, \$6,720; and conversion costs, \$22,050. After mulling over the data above, Tavia's president commented, "I can't understand what's happening here effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind bonuses are out of the question for the people in that department." The company uses the weighted-average method in its process costing. Required: Required: 1. Calculate the following by preparing a report for the Forming Department for October. (Round Cose per equ 2 decimal places.)
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