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dxpayne dxpayne
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5 years ago
Viking Sports is a manufacturer of sport swear. It produces all of its products in one department. The information for the current month is as follows:

Beginning work-in-process   20,000 units
Units started   40,000 units
Units completed   50,000 units
Ending work-in-process   8,000 units
Spoilage   2,000 units

Beginning work-in-process direct materials   $12,000
Beginning work-in-process conversion   $4,000
Direct materials added during month   $60,000
Direct manufacturing labour during month   $20,000

Beginning work-in-process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50 percent of direct manufacturing labour. Ending work-in-process was 60 percent complete. All spoilage is normal and is detected at end of the process.

Required:
Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
Textbook 

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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AllopaAllopa
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More solutions for this book are available here
Direct
Flow of Production      Physical units    materials   Conversion
Work-in-process, beginning   20,000
Started during period   40,000
To account for   60,000

Good units completed   50,000   50,000   50,000
Normal spoilage   2,000   2,000   2,000
Work-in-process ending   8,000   8,000   4,800
Accounted for   60,000   60,000   56,800

      Direct
Costs   Totals   materials   Conversion
Work-in-process, beginning   $16,000   $12,000   $4,000
Costs added during period   90,000   60,000   30,000
Total costs to account for   $106,000   $72,000   $34,000
Divided by equivalent units      60,000   56,800
Equivalent unit costs   $1.80   $1.20   $0.60

Assignment of costs:
Good units completed (50,000 × $1.80)   $90,000
Normal spoilage (2,000 × $1.80)   3,600
Total cost of good units completed   $93,600
Work-in-process, ending
Direct materials (8,000 × $1.20)   $9,600
Conversion (8,000 × $0.60 × 0.60)     2,880
   $12,480
Costs accounted for (rounding error)   $106,080
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dxpayne Author
wrote...
4 years ago
I see. Hmm...

Thanks for confirming, will mark this solved.
DEO
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A year ago
Thanks!
wrote...
A year ago
Thanks!
wrote...
3 weeks ago
Thanks
wrote...
3 weeks ago
Thank you
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