Weighted Average method Calculate unit of normal spoilage, unit of abnormal spoilage and cost of abnormal CC

Weighted Average method

Calculate unit of normal spoilage, unit of abnormal spoilage and cost of abnormal

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CC and Co. purchases fish and creates spicy fish patties to sell to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some patties are spoiled due to defects. Inspection occurs when units are 100% converted. Normal spoiled patties generally constitute 4% of the good patties. Data for January 2020 are as follows: WIP, beginning inventory 1/1/20 Direct materials (100% complete) 40,000 patties Conversion costs (50% complete) Started during January 175,000 patties Completed and transferred out Jan. 31, 2020 165,000 patties WIP, ending inventory 1/31/2020 35,000 patties Direct materials (100% complete) Conversion costs (30% complete) Costs for January: WIP, beginning Inventory: Direct materials $130,000 Conversion costs 95,910 Direct materials added 300,000 Conversion costs added 383,130 CC and Co. purchases fish and creates spicy fish patties to sell to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some patties are spoiled due to defects. Inspection occurs when units are 100% converted. Normal spoiled patties generally constitute 4% of the good patties. Data for January 2020 are as follows: WIP, beginning inventory 1/1/20 Direct materials (100% complete) 40,000 patties Conversion costs (50% complete) Started during January 175,000 patties Completed and transferred out Jan. 31, 2020 165,000 patties WIP, ending inventory 1/31/2020 35,000 patties Direct materials (100% complete) Conversion costs (30% complete) Costs for January: WIP, beginning Inventory: Direct materials $130,000 Conversion costs 95,910 Direct materials added 300,000 Conversion costs added 383,130

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Calculating Unit Cost of Normal and Abnormal Spoilage and Cost of Abnormal Spoilage under Weighted A... View the full answer