Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment

Mimasca Inc. manufactures various holiday masks. Each mask is shaped from a piece of rubber in the molding department. The masks are then transferred to the finishing department, where they are painted and have elastic bands attached. Mimasca uses the weighted average method. In May, the molding department reported the following data:

1. BWIP consisted of 15,000 units, 20% complete. Cost in beginning inventory totaled $1,656.
2. Costs added to production during the month were $26,094.
3. At the end of the month, 45,000 units were transferred out to Finishing. Then, 5,000 units remained in EWIP, 25% complete.

Required:

1. Prepare a physical flow schedule.

Mimasca Inc. Physical Flow Schedule For the Month of May

Units to account for:
Units in beginning WIP	fill in the blank 5ae3a3f6bfb2045_1
Units started	fill in the blank 5ae3a3f6bfb2045_2
Total	fill in the blank 5ae3a3f6bfb2045_3
Units accounted for:
Transferred out	fill in the blank 5ae3a3f6bfb2045_4
Units in ending WIP	fill in the blank 5ae3a3f6bfb2045_5
Total	fill in the blank 5ae3a3f6bfb2045_6

2. Calculate equivalent units of production. fill in the blank ddb198fb1faafdd_1 equivalent units

3. Compute unit cost. Round your answer to the nearest cent. $fill in the blank ddb198fb1faafdd_2per unit

4. Calculate the cost of goods transferred to Finishing at the end of the month. Calculate the cost of ending inventory.

Cost transferred out	$fill in the blank ddb198fb1faafdd_3
Cost of ending work in process	$fill in the blank ddb198fb1faafdd_4

5. Conceptual Connection: Assume that the masks are inspected at the end of the molding process. Of the 45,000 units inspected, 2,500 are rejected as faulty and are discarded. Thus, only 42,500 units are transferred to the finishing department. The manager of Mimasca considers all such spoilage as abnormal and does not want to assign any of this cost to the 42,500 good units produced and transferred to finishing. Your task is to determine the cost of this spoilage of 2,500 units. $fill in the blank ddb198fb1faafdd_5