Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! I need help determining how to set up the problems with the data set in the first question. This has to do with weighted

Hello! I need help determining how to set up the problems with the data set in the first question. This has to do with weighted average with spoilage. I appreciate your help because I am really stuck.image text in transcribed

image text in transcribed

image text in transcribed

Process Costing - Weighted Average With Spoilage Mr. Smith, a consultant, has indicated that the Weighted Average method is appropriate our needs. He is concerned about the number of units that failed inspection and the pricing of the good units completed General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. The industrial engineers have studied our system and have determined that the acceptable loss for every hundred units that pass the inspection point is 5 units. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $5,527.50. Of this amount, $1,518.00 was from raw materials added, $2,673.00 for labor and $1,336.50 for overhead. These 3,300 figurines were assumed to be 30.00% complete as to labor and overhead. During January, 22,500 units were started, $10,800.00 of materials and $58,887.00 of labor costs were incurred. The 7,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to labor and overhead. While normal spoilage is 5% of the good units completed, 2013 units failed inspection in January. The units are inspected at the end of the process. Process Costing Weighted Average With Spoilage MOLDING Physical Flow of Units January Work-in-Process - Beginning Units Started this Period Units to Account for Total transferred out Normal spoilage (Roundup to the next unit if needed) Abnormal spoilage Work-in-Process - Ending Total Accounted for 17.01) (17.02) 17.03 17.04 (17.05 Equivalent Units Material (Round to three places,.####) 17.06) Equivalent Units Conversion (Round to three places,# ####) (17.07) Total cost of Material (Round to two places, ### ###) 17.08) Total cost of Conversion (Round to two places,.##) Total cost to account for (Round to two places,.## (17.09) 17.10) Cost per equivalent unit of Material (Round to seven places,########) 17.11) Cost per equivalent unit of Conversion (Round to seven places. ######) 17.12) 17.13 (17.14) (17.15)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions