Question
Please help me to do the part C FIFO and part D show all the working detail plzzz Abbot Technology manufactures a chemical product. Each
Please help me to do the part C FIFO and part D show all the working detail plzzz
Abbot Technology manufactures a chemical product. Each product will pass through Process X. All direct materials are applied at the beginning of the process and conversion costs are added evenly during the process. Inspection occurs at the 60% stage of production. Normal spoilage is 10% of all good units that pass inspection. Spoilage units are disposed of at zero net disposal value. The company adopts the weighted-average method of process costing. Data for Process X for November 2018 are as follows:
Physical units Direct materials Conversion costs
Work in process, beginning 1 November 87,500 $400,000 $375,500
Started during November 537,500
Good units completed and transferred out during November 487,500
Work in process, ending 30 November 70,000
Total costs added during November $1,443,750 $5,482,500
Degree of completion of beginning work in process ? 90%
Degree of completion of closing work in process ? 80%
Required: a For November 2018, show the physical units and compute the equivalent units for each of the cost category. (7 marks)
b Also for November 2018, summarize total costs to account for and assign these costs to: i units completed and transferred out (including normal spoilage); ii abnormal spoilage; iii units in ending working in process. (10 marks)
c Re-compute (a) and (b) using the FIFO method. (20 marks)
d What issues should the manager focus on when reviewing the equivalent unit calculation? (3 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started