The company uses the weighted average method of process costing for this department. Materials are added at
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Question:
The company uses the weighted average method of process costing for this department.
- Materials are added at the beginning of the process.
- There is no spoilage in the assembly department.
Production information related to January:
- Beginning work in process on January 1 was 70% complete as to conversion.
- Ending work-in-process on January 31 was 40% complete as to conversion.
- The beginning inventory on January 1 included $15,000 for materials and $6,000 for conversion costs.
Other information related to production in January for the Assembly Department:
Beginning work-in-process units 20,000
Units started this period 40,000
Units completed this period 52,000
Ending work-in-process units 8,000
Material costs added $44,000
Direct manufacturing labor added $16,000
Factory overhead applied $8,000
Please provide the following:
- Physical flow
- Equivalent units
- Cost per equivalent unit
- Cost assigned to units transferred out
- Cost of abnormal spoilage (if applicable)
- Cost assigned to units in ending work in process
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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