Problem 6-49 Weighted-Average Method; Transferred-in Costs; Spoilage (Appendix) (LO 6-2, 6-4, 6-6, 6- 9) APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process costing system using the weighted average method. Bicycle parts are manufactured in the molding department and then are consolidated into a single bike unit in the molding department and transferred to the assembly department where they are assembled. After assembly, the bicycle is sent to the packing department. Annual cost and production figures for the assembly department are presented in the schedules below. Defective bicycles are identified at the inspection point when the assembly labor process is 70% complete; all assembly materials have been added at this point. The normal rejection rate for defective bicycles is 5% of the bicycles reaching the inspection point. Any defective bicycles above the 5% quota are considered to be abnormal. All defective bikes are removed from the production process and destroyed. Assembly Department Cost Data Transferred-in from Molding Assembly Assembly Department Materials Conversion $ 93,200 $ 8,310 $ 13,800 1, 246,600 102,120 244,620 $1,339,800 $110,430 $258,420 Total Cost of Bike through Assembly $ 115, 310 1,593,340 $1,708,650 Prior period costs Current period costs Total costs Assembly Assembly Department Production Data Percentage Complete Assembly Bicycles Transferred-in Materials 3, 110 100% 100% 56,000 100 45,500 100 100 4,220 100 Assembly Conversion 80% Assemb Beginning inventory Transferred-in from molding during year Transferred out to packing during year Ending inventory 100 20 50 Required: 1. Compute the number of defective, or spoiled, bikes that are considered to be a. Normal spoilage b. Abnormal spoilage. 2. Compute the equivalent units of production for the year for a. Bicycles transferred in from the molding department. b. Bicycles produced with regard to assembly materials. c. Bicycles produced with regard to assembly conversion. 3. Compute the cost per equivalent unit for the fully assembled bike. 4. Compute the amount of the total production cost of $1,708,650 that will be associated with the following items: a. Normal spoiled units. b. Good units completed in the assembly department. C. Abnormal spoiled units. d. Ending Work-in-Process Inventory in the assembly department. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the number of defective, or spoiled, bikes that are considered to be a. Normal spoilage. b. Abnormal spoilage. Normal spoilage Abnormal spoilage Required 1 Required 2 Required 3 Required 4 Compute the equivalent units of production for the year for a. Bicycles transferred in from the molding department. b. Bicycles produced with regard to assembly materials. C. Bicycles produced with regard to assembly conversion. Transferred-in Materials Conversion Equivalent units of production Required 1 Required 2 Required 3 Required 4 Compute the cost per equivalent unit for the fully assembled bike. decimal places.) Cost per equivalent unit Required 1 Required 2 Required 3 Required 4 Compute the amount of the total production cost of $1,708,650 that will be associated with the following items: a. Normal spoiled units. b. Good units completed in the assembly department. c. Abnormal spoiled units. d. Ending Work-in-Process Inventory in the assembly department. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Normal spoilage Good units completed in the assembly department Abnormal spoilage Ending work-in-process inventory