Question: Right Man Ltd. has five processing departments through which all products flow. Information for Department 2 for the most recent month is as follows: -
Right Man Ltd. has five processing departments through which all products flow. Information for Department 2 for the most recent month is as follows: - Beginning work in process inventory in Department 2 consisted of 4,000 units that were 50% complete. - During the month, 25,000 units were received from Department 1. - 19,000 good units were completed and transferred to Department 3. - At the end of the month, 8,500 units in Department 2 were 60% complete. Remaining units were considered normal spoilage. - At the end of the process the units are inspected, and all material is added to the good units. - Normal spoilage is charged to manufacturing overhead. Required: 1. Prepare the first portion of the production report for Department 2: Quantity Schedule and the Equivalent Units of Production (heading not required). (7 marks) 2. Why is the above costing system appropriate for this company? (1 mark)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
