GON manufacturing company produces product X in two stage process. The company has molding and finishing...

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GON manufacturing company produces product X in two stage process. The company has molding and finishing operation. The company uses weighted average method of process costing. During July, the following data are available: Q: Compute the cost assigned to abnormal lost units. Beginning Cost Added cost Transferred in Direct materials 40,000.00 640,000.00 82,000.00 650,000.00 Conversion cost 253,250.00 800,000.00 Units of beginning work in process inventory are 20,000 units. Percentage of completion is 45% for beginning inventory. Units started are 80,000 units and unit completed is 60,000 units. Units in ending Work in process inventory were 5% incomplete as to conversion cost. Ending WIP inventory is 25,000 units. Conversion costs are incurred evenly during the process. Direct materials costs are incurred when production is 90% complete. The inspection point is 80% stage of completion. Normal spoilage is 10% of all good units (TO + End WIP) that pass inspection. GON manufacturing company produces product X in two stage process. The company has molding and finishing operation. The company uses weighted average method of process costing. During July, the following data are available: Q: Compute the cost assigned to abnormal lost units. Beginning Cost Added cost Transferred in Direct materials 40,000.00 640,000.00 82,000.00 650,000.00 Conversion cost 253,250.00 800,000.00 Units of beginning work in process inventory are 20,000 units. Percentage of completion is 45% for beginning inventory. Units started are 80,000 units and unit completed is 60,000 units. Units in ending Work in process inventory were 5% incomplete as to conversion cost. Ending WIP inventory is 25,000 units. Conversion costs are incurred evenly during the process. Direct materials costs are incurred when production is 90% complete. The inspection point is 80% stage of completion. Normal spoilage is 10% of all good units (TO + End WIP) that pass inspection.

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To compute the cost assigned to abnormal lost units we need to calculate the equivalent units for bo... View the full answer