Company produces moulded beach widgets which they have traditionally sold for $1,200 All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production Inspection occurs when production is 100 completed Normal spoilage is 10 of the total number of units started in the month The business has never had a managerial accountant and they don't even know about process costing Production manager expressed a concern about controlling spoilage and tracking the costs of bad product Marketing manager asked about the spoilage and wondered if pricing should be adjusted when spoilage (or any other production costs) goes up or down in any month They have never heard of FIFO and WA and don't even know what the reports do for them or what information each provides Purchasing manager well we couldn't find the purchasing manager to ask their thoughts Beginning inventory was 65 complete Ending inventory is 40 complete Beginning inventories Direct materials $3,996,000 Conversion costs $1,404,000 Costs added during current period Direct materials $30,458,400 Conversion costs $18,303,900 Physical units Units in beginning inventory 7,200 Units started this month 34,300 Total good units completed 30,100 Total spoiled units for the month 5,000 a) Prepare a spreadsheet that uses a data input box, calculates information necessary for a weighted average process cost report, and presents the cost report in an easily understood format and write out the journal entries for this period's work B) Copy the spreadsheet into a new range or new worksheet If you use a new worksheet, highlight the tab and rename the worksheet FIFO Now alter the weighted average calculations so that the spreadsheet uses data from the input box to calculate the information necessary for a FIFO process cost report and presents the cost report in an easily understood format C) Describe factors that would affect an accountant's choice of process costing method and make a recommendation for a process costing method for Rally Explain your choice

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Company produces moulded beach widgets which they have traditionally sold for $1,200. All direct materials are added at the beginning of production in the department,

Company produces moulded beach widgets which they have traditionally sold for $1,200. All direct materials are added at the beginning of production in the department, and conversion costs are incurred evenly throughout production. Inspection occurs when production is 100% completed. Normal spoilage is 10% of the total number of units started in the month. The business has never had a managerial accountant and they don't even know about process costing. Production manager expressed a concern about controlling spoilage and tracking the costs of bad product. Marketing manager asked about the spoilage and wondered if pricing should be adjusted when spoilage (or any other production costs) goes up or down in any month. They have never heard of FIFO and WA - and don't even know what the reports do for them or what information each provides. Purchasing manager - well we couldn't find the purchasing manager to ask their thoughts. Beginning inventory was 65% complete. Ending inventory is 40% complete.

Beginning inventories
Direct materials	$3,996,000
Conversion costs	$1,404,000
Costs added during current period
Direct materials	$30,458,400
Conversion costs	$18,303,900
Physical units
Units in beginning inventory	7,200
Units started this month	34,300
Total good units completed	30,100
Total spoiled units for the month	5,000

a) Prepare a spreadsheet that uses a data input box, calculates information necessary for a weighted average process cost report, and presents the cost report in an easily understood format and write out the journal entries for this period's work.

B) Copy the spreadsheet into a new range or new worksheet. If you use a new worksheet, highlight the tab and rename the worksheet “FIFO.” Now alter the weighted average calculations so that the spreadsheet uses data from the input box to calculate the information necessary for a FIFO process cost report and presents the cost report in an easily understood format.

C) Describe factors that would affect an accountant's choice of process costing method and make a recommendation for a process costing method for Rally. Explain your choice.