The Frackle Department is the first of a two-stage production process. Spoilage is identified when the units
Question:
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?
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins