26. Rudy Company employs process cost system, using Weighted Average Costing system. A unit of product...

 

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26. Rudy Company employs process cost system, using Weighted Average Costing system. A unit of product passes through two departments: Assembly and Finishing before it is complete. Information regarding Assembly Department follow: Work in Process, Aug 1 Spoiled Units Started in production Transferred Out 10,000 units 7,500 65,000 60,000 Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work in Process on August 1 was 90% complete as to conversion while 80% converted on August 31. In the Assembly Department, inspection takes place when the units are 75% converted. The company usually experienced a 5% loss based on the completed units. Cost data for the month of August follow: Work in Process, Beg Current Cost Materials 81,000 279,000 Labor 66,000 220,500 What is the total cost of units transferred-out and total cost of work in process, end? a. 828,000 93,441 b. 859,209 93,441 c. 828,000 90,000 d. 859,209; 90,000 Overhead 71,250 286,875 26. Rudy Company employs process cost system, using Weighted Average Costing system. A unit of product passes through two departments: Assembly and Finishing before it is complete. Information regarding Assembly Department follow: Work in Process, Aug 1 Spoiled Units Started in production Transferred Out 10,000 units 7,500 65,000 60,000 Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work in Process on August 1 was 90% complete as to conversion while 80% converted on August 31. In the Assembly Department, inspection takes place when the units are 75% converted. The company usually experienced a 5% loss based on the completed units. Cost data for the month of August follow: Work in Process, Beg Current Cost Materials 81,000 279,000 Labor 66,000 220,500 What is the total cost of units transferred-out and total cost of work in process, end? a. 828,000 93,441 b. 859,209 93,441 c. 828,000 90,000 d. 859,209; 90,000 Overhead 71,250 286,875