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How to calculate abnormal spoilage and equivalent units? BUSI 294 Assignment - Process Costing and Spoilage Kabana Industries manufactures widgets in two stages. The first

How to calculate abnormal spoilage and equivalent units?

image text in transcribed BUSI 294 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 85% complete. Following is the data recorded for the Finishing Department for the month of September: Units of beginning work-in-process inventory Units of ending work-in-process inventory Percentage completion of units in beginning work-in-process inventory Cost of Material \"A\" in beginning work-in-process inventory Cost of Material \"B\" in beginning work-in-process inventory Transferred-in cost in beginning work-in-process inventory Conversions costs in beginning work-in-process inventory Percentage completion of units in ending work-in-process inventory Costs of Material \"A\" added in the month of September Costs of Material \"B\" added in the month of September Conversion costs added during September Transferred-in costs added during September Units started in September Units completed and transferred to finished goods inventory 15,625 31,250 55% $171,875 ? $187,500 $359,375 92% $835,800 $93,750 $1,968,750 $1,317,975 109,375 78,125 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-inprocess

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