Malfoy Industries, who uses the FIFO method of process costing, manufactures products in three sequential processes: Molding, Plating, and Finishing. In the Plating process, direct materials are added at the beginning of the process, while conversion costs are incurred evenly throughout the process. The normal spoilage rate in the Plating process is $1\%$ of good units produced. Malfoy provided the following information about the Plating process in June:

Work$-$in$-$Process Inventory Beginning Ending

Units $700900$

Percent of Process Complete $30\%60\%$

Costs Incurred Beginning

Work$-$in$-$Process Current Period

Transferred$-$In Costs $$1,500\mathrm{.}00$ $$9,350$

Direct Materials Costs $$2,330\mathrm{.}00$ $$17,820$

Conversion Costs $$1,025\mathrm{.}00$ $$11,823$

Units Started Completed and

Transferred Out

Units $5,5005,200$

REQUIREMENTS:

$1)$ Prepare a production cost report using the Weighted Average Method of process costing to calculate and show the value of units completed and transferred out, ending work in process inventory, and the amount of loss caused by abnormal spoilage.

$2)$ Prepare a production cost report using the FIFO Method of process costing to calculate and show the value of units completed and transferred out, ending work in process inventory, and the amount of loss caused by abnormal spoilage.

 

Answer rating: 100% (QA)

Lets first address each requirement separately using both the Weighted Average Method and the FIFO M... View the full answer