Question
Question 1 The assembly department of ABC Inc. uses weighted average process costing method. It began the month of November 2021 with 8,000 units in
Question 1
The assembly department of ABC Inc. uses weighted average process costing method. It began the month of November 2021 with 8,000 units in the beginning work-in-process, which were 75% complete. During the period, work was begun on an additional 45,000 units. Direct materials are added when the goods are 50% complete, labor is added when the units are 30% complete and overhead is incurred uniformly. Units are inspected for rework when they are 70% complete. Rejected units are returned to 40% complete point for rework. Normal rework is 2% of units surviving inspection. During the period, 42,000 units were inspected for rework. An inspection for spoilage occurs when the units are 80% complete. Normal spoilage is 1% of units inspected. This period 600 units were spoiled. Ending work-in-process on November 30 consisted of 4,000 units, 25% complete.
Required:
Part A Determine in units (showing all computations)
(1) Normal spoilage
(2) Normal rework
(3) Abnormal rework
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