The cooking department of Deli Inc. uses a process costing system. Direct materials are added at the beginning of the cooking process. Conversion costs are added evenly during the cooking process. Consider the following data for the cooking department of Deli Inc. for January:

Deli uses the FIFO method of process costing. Inspection occurs when production is 100% completed. Normal spoilage is 11% of good units completed and transferred out during the current period.
Instruction
Form pairs of students to complete the following requirements.
Required
1. For each cost category, compute equivalent units of work done in the current period (January).
2. For each cost category, compute equivalent units of work done to complete beginning work-in-process inventory, to start and complete new units, for normal and abnormal spoilage units, and to produce ending work-in-process inventory.
3. For each cost category, calculate the percentage of completion of ending work-in-process inventory.
4. Summarize total costs to account for, and assign these costs to units completed (and transferred out), normal spoilage, abnormal spoilage, and ending work-in-process.

Transcribed Image Text:

PhysicaMaterials Conversion Costs Units 10,000 S 264,000 S 36,000 Work-in-process, January 1* Started during January Good units completed and transferred out during January Spoiled units Work-in-process, January 31 Costs added during January Cost per equivalent unit of work done in January *Degree of completion: direct materials, 100%; conversion costs, 25%. 61,000 8,000 15,000 S1,776,000 S1,130,400 S 24 S 14.40