Paine's Window Store manufactures windows and uses a weighted average process- costing system. Direct material is...

 

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Paine's Window Store manufactures windows and uses a weighted average process- costing system. Direct material is added at the beginning of the process. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Data for the process is as follows: Direct Units Materials $ Conv Costs % Complete Opening WIP 35 $4,000 $5,000 38% New units 350 Current Costs $38,000 $37,000 Finished units 275 Ending WIP 75 45% Spoiled Units ??? Inspection point Normal Spoilage 80% Complete 15% (2 marks) Determine the number of normal and abnormal spoilage (physical units) produced in the period. (5 marks) Compute the equivalent # of units for the current period for both Direct Materials and Conversion Costs for normal spoilage, abnormal spoilage ending WIP and units completed & transferred. (4 marks) Calculate the costs per Equivalent units of Direct Materials and Conversion Costs. (6 marks) Assign costs of Direct Materials and Conversion Costs to completed windows, normal spoilage, abnormal spoilage and ending WIP (meaning, complete the cost reconciliation section of the production report). Paine's Window Store manufactures windows and uses a weighted average process- costing system. Direct material is added at the beginning of the process. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Data for the process is as follows: Direct Units Materials $ Conv Costs % Complete Opening WIP 35 $4,000 $5,000 38% New units 350 Current Costs $38,000 $37,000 Finished units 275 Ending WIP 75 45% Spoiled Units ??? Inspection point Normal Spoilage 80% Complete 15% (2 marks) Determine the number of normal and abnormal spoilage (physical units) produced in the period. (5 marks) Compute the equivalent # of units for the current period for both Direct Materials and Conversion Costs for normal spoilage, abnormal spoilage ending WIP and units completed & transferred. (4 marks) Calculate the costs per Equivalent units of Direct Materials and Conversion Costs. (6 marks) Assign costs of Direct Materials and Conversion Costs to completed windows, normal spoilage, abnormal spoilage and ending WIP (meaning, complete the cost reconciliation section of the production report).