Goodyear Corporation uses a process cost system in manufacturing its tires for the bicycle industry. Materials are added at the beginning of the process and conversion costs are applied evenly throughout the process. At the beginning of March, the work-in-process is 40% complete and at the end of the month, it is 60% complete. Spoilage is detected at the end of the process. Other data for the month include:

Beginning WIP inventory	1,600 units
Units started	20,000 units
Units placed in finished goods	12,000 units
Ending WIP inventory	1,200 units
Normal spoilage of units finished	20%
Conversion costs	P604,800
Cost of direct materials	600,000
Beginning WIP costs
Materials	60,000
Conversion	60,480

 

Use weighted-average method.

The total cost transferred out:

Answer rating: 100% (QA)

Particulars Input units Particulars Output units Equivalent units Equ... View the full answer