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need 18-26 answered, following is the question its referencing and my work Ive already done to solve it my work for 18-25 18-26 FIFO method,
need 18-26 answered, following is the question its referencing and my work Ive already done to solve it
my work for 18-25
18-26 FIFO method, spoilage. Required: 1. Do Exercise 18-25 using the FIFO method. 2. What are the managerial issues involved in selecting or reviewing the percentage of spoilage considered normal? How would your answer to requirement 1 differ if all spoilage were viewed as normal? 18-25 Weighted average method, spoilage.LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains At LaCroix's facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero LaCroix uses the weighted average method of process costing Summary data for April 2017 are as follows Physical Units 2000 Direct Materials $21240 100% Conversion Costs $ 133 50 12.000 10.800 2.160 2 Work in process beginning inventory April 1 3 Degree of completion of beginning work in process Started during Art 5. Good units completed and transferred out during April 6. Work in process ending inventory April 30) 2 Degree of completion of ending work in process Total costs added during April 9 Normal spolage as a percentage of gooduits 10 Degree of completion of normal spolage 11 Degree of completion of abnormal spolage 100% $97580 75 $1110 10% 100% 100% 100 100 Required: 1. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule. 2. Summarize the total costs to account for calculate the cost per equivalent unit for each cost Category, and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process 18-25 2400 Abnormal Spoilage Units Units in Beginning inventory Units added Normal Spoilage Units completed and Transferred Units in Ending Inventory Abnormal Spoilage Units 12000 1200 10800 2160 240 Units Completed and Transferred Out Abnormal Loss Ending WIP Equivalent Units of Production 26 Complete 10800 240 2160 EUP Material % Complete Conversion EUP Conversion 10800 10800 2401 240 2160 0.751 1620 13200 12560 2 Cost per Equivalent Unit Material Cost of Beginning WIP Cost Added during the month Total Materials and Conversion Costs EUP Cost per Equivalent Unit Conversion 21240 13332 97550 111403 118800 124740 132001 12650 9| 9.853080569 Material Conversion Cost of Goods Transferred Out Cost of Goods Transferred Out EUP Cost per EUP Total Cos: 10800 91 97200 10800 9.853080569 105413 2701 203513.2701 Cost of Abnormal Spoilage EUP Cost per EUP Total Cost 9 2160 240 9.853080569 2364.739335 4524.739335 Material Conversion Cost of Abnormal Spolare 2401 Material Conversion Cost of Ending inventory Cost of Ending Inventory EUP Cost per EUP Total Cost 2160 9 194401 2160 9.853080569 21282.65403 40722.65403 Summary Cost of Goods Transferred Out Cost of Abnormal Spoilage Cost of Ending Inventory 203513.2701 4524.739335 40722.65403 248850.66351Step by Step Solution
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