Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of...

 

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Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks) Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks) Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks) Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks) Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks) Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80 % of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory Direct materials (100% complete) Conversion costs (60% complete) 65,000 units Started during March Completed and transferred out 135,000 units 140,000 units WIP, ending inventory Direct materials (100% complete) Conversion costs (30% complete) 30,000 units Costs: WIP, beginning inventory: Direct materials S400,000 50,000 600,000 300,000 Conversion costs Direct materials added Conversion costs added 1. Compute the nomal spoilage units. (10 marks) 2. Compute the equivalent units for direct material. (10 marks) 3. Compute the equivalent units for conversion cost. (10 Marks) 4. Compute the cost per equivalent. (5 marks) 5. Compute the total cost for completed units. (5 marks) 6. Compute the total cost for ending work in process. (5marks)

Answer rating: 100% (QA)

1 Normal spoilage units 1400 units 2 Equivalent units for direct material 133600 un... View the full answer