Prepare a schedule of equivalent units for all cost categories.

 

Lonsdale Brewing Company (LBC) is a small independent organic certified brewery in North Vancouver. LBC has two production departments, Brewing and Bottling. This question relates to the Bottling Department. For processing in the Bottling Department, goods are transferred in from the Brewing Department. LBC uses the weighted average method in its process-costing system. In the Bottling Department, Direct Materials are added at two stages: material A is added at the 20% completion stage and material B is added at the 93% completion stage. Inspection occurs when units are 90% complete and conversion costs are incurred uniformly throughout the process. The following data were recorded for Bottling Department in the month of January. Units in beginning work-in-process inventory 38,000 % Completion of beginning work-in-process units Units transferred in from Brewing dept Units completed and transferred out Units in ending work-in-process inventory % Completion of ending work-in-process units Costs related to opening inventory Transferred-in costs Direct material - A- costs Direct material - B - costs Conversion costs Costs added during current period: Transferred-in costs Direct materials - A Direct materials - B Conversion costs 75% 120,000 125,000 13,000 95% $160,000 78,000 ? 124,000 $648,000 320,000 480,000 1,312,000 Normal spoilage is considered to be 6% of the units that pass inspection. The company pro-rates normal spoilage between cost of goods manufactured and ending work-in-process.