Question
This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 0.5 to 2 hours.
This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 0.5 to 2 hours. Please submit what you have within 2 hours, or this question is wasted and will be thumbed down. Thank you for your help in advance!
The SMU Company has two departments, a Machining Department and a Finishing Department. Units of production move from the machining department to the finishing department then to Finished Goods Inventory in a continuous process. The company accounts for its process using the Weighted Average method of Process Costing.
In the Finishing Department, additional Direct Materials are added at the start of the process, and Conversion costs are added evenly during the process. Inspection in this department occurs at the end of the process when the units are complete.
In the finishing department Normal spoilage is 3% of the good units completed. Any spoilage greater than that is considered abnormal and expensed in the month in which it is identified.
Additional information is as follows: Physical Units Finishing Department Transferred Direct In Materials Conversion Work in Process November 1 300 $ 4,500 $ 350 $ 3,500 Units Transferred in from Machining in November Good Units Transferred Out Work In Process November 30 Degree of completion in ending WIP Costs added in November 1,300 1,100 450 40% $ 13,790 $ 21,100 $ 1,490 Required: Show your work and take all calculations to four significant digits 1. Determine (12 marks): a. Total Costs of Good Units Completed and Transferred Out, b. The Dollar Amount of Abnormal Spoilage, c. The Dollar Amount of Work in Process Inventory at November 30. aStep by Step Solution
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