Tavia Limited manufactures a plastic gasket that is used in automobile engines. The gaskets go through three
Question:
After mulling over the data above, Tavias president commented, I cant understand whats happening here. Despite a concentrated effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind of performance, year-end bonuses are out of the question for the people in that department. The company uses the weighted-average method in its process costing.
Required:
1. Prepare a report for the Forming Department for October showing how much cost should have been assigned to the units completed and transferred to the Stamping Department and to the ending work in process inventory.
2. Explain to the president why the unit cost appearing on the report prepared by the accountant is so high.
CONTINUE TO NEXT PAGE.
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb