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PROCESS COSTING WITHOUT SPOILAGE BBB Company applies process costing in the manufacture of its sold product. The following data are provided for the year ended
PROCESS COSTING WITHOUT SPOILAGE BBB Company applies process costing in the manufacture of its sold product. The following data are provided for the year ended December 31, 2019. Department 1 January 1, 2019 100,000 units - 40% completed as to conversion cost DM - P3M CC - P7M December 31, 2019 150,000 units - 80% completed as to conversion cost Units started during the year 400,000 units DM - P12M CC - P28M Department 2 January 1, 2019 50,000 units -70% incomplete as to conversion cost Transferred in - P10M DM - P6M CC - P4M December 31, 2019 30,000 units - 10% incomplete as to conversion cost Units started during the year DM - P30M CC - P50M Additional information: a. It is the company's policy to add conversion costs evenly throughout the period in the two departments. b. It is the company's policy to add all direct materials in Department 1 at the start of the process while all direct materials in Department 2 are added at the end of the process. c. There is no spoilage in both departments. Requirements: 1. Compute for the cost of goods manufactured and ending work-in-process for Department 1 using weighted average method. 2. Compute for the cost of goods manufactured and ending work-in-process for Department 2 using weighted average method
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