Question: Popov Co . uses the weighted average process costing method. Direct materials are added at the beginning of the production process, and conversion costs are

Popov Co. uses the weighted average process costing method. Direct materials are added at the beginning of the production process, and conversion costs are incurred uniformly over the production process. Units are inspected when they are 50% complete with respect to conversion.
The company began September with 3,000 units in WIP that were 40% complete with respect to conversion, valued at $50,000 for materials and $70,000 for conversion. 20,000 units were added into WIP in September. Popov Co. ended September with 4,400 units in WIP (80% complete with respect to conversion) and 17,600 completed good units.
The following costs were incurred during September: $916,000 for direct materials and $1,183,960 for conversion.
Popov Co. considers normal spoilage to be 5% of good units that pass inspection.
What is the cost allocated to the Finished Goods Inventory for September, after adjusting for the costs of spoilage?
Enter your answer without a dollar sign or commas, and round your ANSWER to the nearest dollar (if necessary). Do not round any calculations other than your final answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!