10:44 H 41% Group Assignment Co...ent Accounting II.pdf - Read-only Group Assignment: Maximum of four students Marks: 5*5=25 The Boston Company is a food-processing company based in Hargeisa. It operates under the weighted- average method of process costing and has two departments: cleaning and packaging. For the cleaning department, conversion costs are added evenly during the process, and direct materials are added at the beginning 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 packaging department. Summary data for May follow: ADDI Home Insert Page Layout Formulas A Data Review View B C D 1 The Boston Company: Cleaning Department Physical Units Direct Materials Conversion Costs 2 Work in process, beginning inventory (May 1) 3,000 $ 4,500 $ 2,700 3 Degree of completion of beginning work in process 100% 60% 4 Started during May 25,000 5 Good units completed and transferred out during May 20,500 6 Work in process, ending inventory (May 31) 4,200 7 Degree of completion of ending work in process 100% 8 Total costs added during May $46,250 30% $37,216 9 Normal spoilage as a percentage of good units 10% 10 Degree of completion of normal spoilage 100% 100% 11 Degree of completion of abnormal spoilage 100% 100% For the cleaning department, summarize total costs to account for and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Carry unit-cost calculations to four decimal places when necessary. Calculate final totals to the nearest dollar. Required Under weighted average method and first-in-first-out (FIFO) method Step 1: Summarize the flow of physical units of output. Step 2: Compute output in terms of equivalent units. Step 3: Summarize total costs to account for. Step 4: Compute cost per equivalent unit. Step 5: Assign total costs to units completed and to units in ending work in process. |||