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Spike Manufacturing uses a process cost system to manufacture microchips for the military. The following information pertains to operations for the month of November Percentage
| Spike Manufacturing uses a process cost system to manufacture microchips for the military. The following information pertains to operations for the month of November | ||||
| Percentage Complete | ||||
| Units | Direct Materials | Conversion | ||
| Beginning Work in Process Inventory, November 1 | 20,000 | 60% | 20% | |
| Started in production during November | 115,000 | |||
| Ending Work in Process Inventory | 18,000 | 90% | 40% | |
| Beginning Work in Process Inventory Costs: | ||||
| Material | $78,200 | |||
| Conversion | 35,560 | |||
| Current Period Costs: | ||||
| Material | $1,187,200 | |||
| Conversion | 368,090 | |||
| REQUIRED Using the weighted-average method, answer the following questions: | ||||
| 1. How many units were completed and transferred to finished goods? | ||||
| 2. What are the total equivalent units for each cost component? | ||||
| 3. What is the cost per equivalent unit for each cost component? | ||||
| 4. What is the cost transferred to Finished Goods Inventory? | ||||
| 5. What is the cost of ending WIP inventory? | ||||
| 6. If there was no beginning finished goods inventory for November and 93,000 units were sold in November how much is COGS? | ||||
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Accounting What the Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
12th edition
978-1260565492
