Question Two: (50 marks) ABC Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current

Question

86 users unlocked this solution today!

Question Two: (50 marks) ABC Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows: Beginning work in process 22,000 units Units started 44,000 units Units completed 55,000 units Ending work in process 10,000 units Spoilage 1,000 units Beginning work-in-process direct materials $15,000 Beginning work-in-process conversion $ 6,000 Direct materials added during month $70,800 Conversion costs during month $56,000 Beginning work in process was half complete as to conversion Direct materials are added at the beginning of the process. Ending work in process was 60% complete. All spoilage is normal and is detected at end of the process. Required: Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used to compute the following: 1. Physical units (10 marks) 2. Equivalent units (10 marks) 3. Total cost to account for (10 marks) 4. Cost per equivalent (10 marks) 5. Cost assignment to both completed units and ending inventory (10 marks)