Refer to the information in Problem 19-37 except that the transferred-in costs of beginning work in process
Question:
Refer to the information in Problem 19-37 except that the transferred-in costs of beginning work in process on May 1 are $33,090 (instead of $33,698). Transferred-in costs for May equal the total cost of good units completed and transferred out in May from the cleaning department, as calculated in Problem 19-36 using the FIFO method of process costing.
Data From Problem 19-37
In the Seafood Company’s packaging department, conversion costs are added evenly during the process, and direct materials are added at the end of the process. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal value. All completed work is transferred to the next department. The transferred-in costs for May equal the total cost of good units completed and transferred out in May from the cleaning department, which were calculated in Problem 19-35 using the weighted-average method of process costing. Summary data for May follow.
Required
For the packaging department, use the weighted-average method to summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.
Required
For the packaging department, use the FIFO method to summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.
Step by Step Answer:
ANSWER part a Using the WeightedAverage Method 1 Total Units Accounted for Physical units Work in process beginning inventory May 1 24600 Started during May 26400 Total units accounted for 51000 2 Tot...View the full answer
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
