Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight

SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight photovoltaic cells are assembled into modules and connected to a frame. In this department, materials are added at the beginning of the process and conversion takes place uniformly.

At the start of November 2020, SunEnergys assembly department had 2,400 panels in beginning work in process, which were 100% complete for materials and 40% complete for conversion costs. An additional 12,000 units were started in the department in November, and 3,600 units remained in work in process at the end of the month. These unfinished units are 100% complete for materials and 70% complete for conversion costs.

The assembly department had 1,800 spoiled units in November. Because of the difficulty of keeping moisture out of the modules and sealing the photovoltaic cells between layers of glass, normal spoilage is approximately 12% of good units. The departments costs for the month of November are as follows:

Beginning WIP Costs incurred during period
direct materials costs 76,800 240,000
conversion costs 123,000 1,200,000

1. Compute the normal and abnormal in units for November, assuming the inspection point is at (a) the 30% stage of completion, (b) the 60% stage of completion, and (c) the 100% stage of completion.

2. Refer to your answer in requirement 1. Why are there different amounts of normal and abnormal spoilage at different inspection points?

3. Now assume that the assembly department inspects at the 60% stage of completion. Using the weighted-average method, calculate the cost of units transferred out, the cost of abnormal spoilage, and the cost of ending inventory for the assembly department in November.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An International Perspective

Authors: Arne Kinserdal

2nd Edition

0273631543, 978-0273631545

More Books

Students also viewed these Accounting questions

Question

Calculate a utility estimate for a target organization

Answered: 1 week ago