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Week 4 option 1 assignment Dekalb Processing Company (DPC) DPC manufactures medical testing strips. This is a continous Process enviroment. Direct Material are added at
Week 4 option 1 assignment | ||||
Dekalb Processing Company (DPC) | ||||
DPC manufactures medical testing strips. This is a continous Process enviroment. | ||||
Direct Material are added at the beginning of the process. Conversion costs are adding all during the manufacturing process. The manufacturing has a computer aided quality control step which | ||||
rejects 1.5% of the production for defects. Summary data for this period are as follows: | ||||
0 | ||||
Physical Units | Direct Material | Conversion Costs | ||
WIP , Beginning | 10,000 | 250,000 | 100,000 | |
Degree of completion, beginning WIP | 100% | 50% | ||
Started this period | 12,000 | |||
TOTAL UNITS TO ACCOUNT FOR: | ||||
Good units completed and transferred | 20,000 | |||
WIP, ending inventory | 2,000 | |||
TOTAL UNITS ACCOUNTED FOR: | 22,000 | |||
Degree of completion of ending WIP | 100% | 60% | ||
Total costs added this period | $ 500,000 | $ 250,000 | ||
Normal spoliage as a % of good units | 1.5 % of good units | |||
Degree of completion of normal goods | 100% | 100% | ||
Degree of completion of abnormal goods | 100% | 100% | ||
Required: | ||||
1). Compute the units to account for, number of normal spoilage and number of abnormal spoilage. | ||||
2). Compute the Equivalent Units. | ||||
3). Compute the cost per unit and completed and transferred out of the process. | ||||
4). Compute the total costs to account for, compute cost per equivalent unit, and assign costs. |
|
Weighted average Costing | Physical Units | Direct Material | Conversion Costs |
WIP , Beginning | |||
Degree of completion, beginning WIP | |||
Started this period | |||
TOTAL UNITS TO ACCOUNT FOR: | |||
Good units completed and transferred | |||
WIP , ending inventory | |||
TOTAL UNITS ACCOUNTED FOR: | |||
Degree of completion of ending WIP | |||
Total costs added this period | |||
Step Two compute Spoilage: | |||
Identify the number of normal and abnormal spoilage | |||
Normal Spoilage= | |||
Abnormal Spoilage = | |||
Abnormal Spoilage = | |||
Total Spoilage |
Step 3: compute equivalent Units of Production | |||||||
Weighted eqivalent units | |||||||
Total Production costs | Direct Material | Conversion Costs | Notes | ||||
WIP, beginning | |||||||
started during the period | |||||||
to Account for | |||||||
Goods units completed and transferred | |||||||
Normal spoilage | |||||||
Abnormal Spoilage | |||||||
WIP, ending | |||||||
Accounted for | |||||||
Equivalent units for WIP | |||||||
Step 4: compute the cost per equivalent Units (EUP) | ||||
Weighted eqivalent units | ||||
Total Production costs | Direct Material | Conversion Costs | ||
WIP, beginning | ||||
costs added in current period | ||||
total costs to account for | ||||
divide by | ||||
cost per equivalent unit | ||||
STEP 5 Assign and Reconcile Costs | ||||
Assignment of costs | ||||
good units completed and transferred out | ||||
WIP, Ending | ||||
goods units completed and transferred out | ||||
costs added before normal spoilage | ||||
normal spoilage | ||||
total costs of goods units completed | ||||
abnormal spoilage | ||||
Total costs account for |
| |||
Please provide detail information how you get the numbers |
|
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