Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Concord Ready-mix applies process costing as it produces a single product in large volume. The process line (partial) for Mixing Department is given below: Compute

  1. Concord Ready-mix applies process costing as it produces a single product in large volume. The process line (partial) for Mixing Department is given below:

Compute cost of normal spoilage and show the shifting

63,000 Units

2,000 Units

4,000 Units

60,000 Units

 

0%

 

20%

 

30%

 

40%

 

50%


70%

 

80%

 

100%

 

DM

 

DL

 

IP 1

 

IP 2

 

OH

Other Information:

At 20%, we have beginning inventory and at 80%, we have ending inventory. At 50%, a total of 66,000 units were inspected for rework. 1% of the units inspected are considered as normal rework. At 70%, we have inspection point for spoilage. 1% of input is considered as normal spoilage. Spoiled units can be scrapped at the rate of $3.

 

Costs per equivalent unit data are given below:

 

Material

Labor

Overhead

Cost per equivalent unit

$8

$5

$3

 

Required:

  1. Compute equivalent units for normal rework and normal spoilage under weighted average method.
  2. Compute cost of normal rework and show the shifting.

Step by Step Solution

3.46 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

MALA Method D Unt 2 Computation equivalent unite for no weighted average Ste... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finite Mathematics and Its Applications

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

12th edition

978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632

More Books

Students also viewed these Accounting questions

Question

How can you improve your negotiating effectiveness?

Answered: 1 week ago