The Frackle Department is the first of a two-stage production process. Spoilage is identified when the units

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The Frackle Department is the first of a two-stage production process. Spoilage is identified when the units have completed the Forming process. Costs of spoiled units are assigned to units completed and transferred to the second department in the period spoilage is identified. The following information concerns Forming's conversion costs in May:

Units Conversion costs Beginning work-in-process (50% complete) 2,000 $10,000

Units started during May 8,000 75,500

Spoilage-normal 500

Units completed & transferred 7,000

Ending work-in-process (80% complete) 2,500

Using the weighted average method, what was Forming's conversion cost transferred to the second production department?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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