Need questions 17.1 through 17.15 solved. Mr. Smith, a consultant, has indicated that the Weighted Average method is appropriate our needs. He is concerned
about the number of units that failed inspection and the pricing of the good units completed.
General Information
The I See The Light Company has a related company that produces the figurines. They use process costing
in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.
The material is added at the beginning of the process. The labor and overhead costs are assumed
to be added uniformly throughout. The industrial engineers have studied our system and have determined
that the acceptable loss for every hundred units that pass the inspection point is 5 units.
Month of January
Selected information for January is presented below. Note that the applied overhead rate was
50% of direct labor costs in the molding department.
Molding Department
Goods in-process as of January 1 were 3,400 figurines at a cost of $8,721.00. Of this amount, $1,836.00 was from
raw materials added, $4,590.00 for labor and $2,295.00 for overhead. These 3,400 figurines were assumed to be
50.00% complete as to labor and overhead.
During January, 24,500 units were started, $13,720.00 of materials and $67,500.00 of labor costs were incurred.
The 4,000 figurines that were in-process at the end of January were assumed to be 70.00% complete to
labor and overhead.
While normal spoilage is 5% of the good units completed, 2,868 units failed inspection in January. The units are inspected at the end of the process.

Physical Flow of Units					January
Work-in-Process - Beginning					3400
Units Started this Period					24500
Units to Account for					27900
Total transferred out						{17.01}
Normal spoilage (Roundup to the next unit if needed)						{17.02}
Abnormal spoilage						{17.03}
Work-in-Process - Ending					4,000 units	{17.04}
Total Accounted for					27,900 units	{17.05}
Equivalent Units Material (Round to three places, ##.###.###)						{17.06}
Equivalent Units Conversion (Round to three places, ##.###.###)						{17.07}
Total cost of Material (Round to two places, ##.###.##)						{17.08}
Total cost of Conversion (Round to two places, ##.###.##)						{17.09}
Total cost to account for (Round to two places, ##.###.##)						{17.10}
Cost per equivalent unit of Material (Round to seven places, ###.#######)						{17.11}
Cost per equivalent unit of Conversion (Round to seven places, ###.#######)						{17.12}
Cost of the ending inventory, material and convesion (Round to two places, $###,###.## )						{17.13}
Cost of the units transferred, material and convesion (Round to two places, $###,###.## )						{17.14}
Cost of the abnormal spoilage (Round to two places, $###,###.## )						{17.15}