Wing Shun Ltd (Wing Shun) produces a soft drink product called Super', The company adopts the...
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Wing Shun Ltd (Wing Shun) produces a soft drink product called "Super', The company adopts the first-in, first-out (FIFO) method of process costing for its manufacturing operations. Direct materials are added when the production process is 10% complete, and conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable until Wing Shun inspects at the 60% stage of completion. Spoiled units are disposed of at zero net disposal value. The following is the company's production data in June 2020 Direct Conversion Physical Units ('Super'). 30,000 $2,900,000 Materials Costs Beginning work in process (1 Junc) Degree of completion of beginning work in process $320,000 30% Started in June 50,000 Goods units completed and transferred out during June Work in process, ending inventory (June 30) Degree of completion of ending work in process Total costs added during June Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 50,000 16,000 20% 11,600,000 $5,529,000 10% ? ? Required: (a) For each cost category, compute equivalent units. Show physical units in the first column of your schedule. (20 marks) (b) Summarize the total costs to account for; calculate the cost per cquivalent unit for cach cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (7 marks) Wing Shun Ltd (Wing Shun) produces a soft drink product called "Super', The company adopts the first-in, first-out (FIFO) method of process costing for its manufacturing operations. Direct materials are added when the production process is 10% complete, and conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable until Wing Shun inspects at the 60% stage of completion. Spoiled units are disposed of at zero net disposal value. The following is the company's production data in June 2020 Direct Conversion Physical Units ('Super'). 30,000 $2,900,000 Materials Costs Beginning work in process (1 Junc) Degree of completion of beginning work in process $320,000 30% Started in June 50,000 Goods units completed and transferred out during June Work in process, ending inventory (June 30) Degree of completion of ending work in process Total costs added during June Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 50,000 16,000 20% 11,600,000 $5,529,000 10% ? ? Required: (a) For each cost category, compute equivalent units. Show physical units in the first column of your schedule. (20 marks) (b) Summarize the total costs to account for; calculate the cost per cquivalent unit for cach cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (7 marks)
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Wing Shun Ltd Production Cost ReportFIFO For the Month of June 2020 a InputOutput reconciliation Uni... View the full answer
Related Book For
New Products Management
ISBN: 978-0078029042
11th edition
Authors: C. Merle Crawford, C. Anthony Di Benedetto
Posted Date:
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