Question

Universal Automotive Group is a maker of engines for high performance cars and uses a process...

Universal Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Universal's most popular engine, the "Atomic 8".

Beginning work-in-process (40% completed) 370 units
Transferred-in 1,560 units
Normal spoilage 100 units
Abnormal spoilage 90 units
Good units transferred out 1,350 units
Ending work-in-process (24% completed) 390 units
Conversion costs in beginning inventory $174,300

Current conversion cost

$692,954

  

Universal Automotive Group calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of defects not discovered before inspection of finished units. Using the weighted-average method, answer the following question:

What are the equivalent units for conversion costs?  

A.1,930
B.1,560
C.1,634
D.1,486

What are the total conversion costs of abnormal spoilage?  

A.$44,880
B.$45,880
C.$47,780
D.$41,980
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Whole Unit Equivalent Units
Good Units Transferred Out 1350 1350
Ending WIP 24% 390 93.6
Normal Loss 100 100
Abnormal Loss 90 90
Total Equivalent Units 1633.6
Total Cost 174300+692954 867254
Cost per Eq Unit 867254/1633.6                     530.89
No of Units of Abnormal Loss 90
Cost of Abnormal Loss 530.89*90                     47,780
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process...
Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Giddings's blockbuster drug called Solcax. Beginning work-in-process (40% completed) 600 units Transferred-in 3,200 units Normal spoilage 360 units Abnormal spoilage 160 units Good units transferred out 2,800 units Ending work-in-process (1/3 completed) 480 units Conversion costs in beginning inventory $ 3,296 Current conversion costs $ 6,100 Giddings calculates separate costs of spoilage by...
Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process...
Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Giddings's blockbuster drug called Solcax. Beginning work-in-process (40% completed) 800 units Transferred-in 4,000 units Normal spoilage 400 units Abnormal spoilage 200 units Good units transferred out 3,600 units Ending work-in-process (1/3 completed) 600 units Conversion costs in beginning inventory $ 2,560 Current conversion costs $ 6,900 Giddings calculates separate costs of spoilage by...
Consider the following data for November 2017 from MacLean Manufacturing​ Company, which makes silk pennants and...
Consider the following data for November 2017 from MacLean Manufacturing​ Company, which makes silk pennants and uses a​ process-costing system. All direct materials are added at the beginning of the​ process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. MacLean Manufacturing Company uses the​ weighted-average method of process costing. Physical Units Direct Conversion (Pennants) Materials Costs Work in​...
Elegant, USA manufactures steering wheel covers for various brands of luxury cars. At its Jamaica, plant...
Elegant, USA manufactures steering wheel covers for various brands of luxury cars. At its Jamaica, plant direct materials and the conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at various levels of the production process and are discarded at a net disposal value of zero. The following data summarizes the most recent Elegant USA uses the FIFO method of accounting for spoilage and the numbers for the...
Greenworks, Inc. mass-produces goods in three processes. In the first process, direct materials are added 20%...
Greenworks, Inc. mass-produces goods in three processes. In the first process, direct materials are added 20% of the way through the process, conversion costs are incurred evenly throughout the process, and the normal spoilage rate is 5%. This period, 100,000 units were started in the first process. The 25,000 units in beginning work-in-process inventory (40% complete) were worth $100,000 ($50,000 in conversion costs and $50,000 in direct materials costs). During the period, the first process cost $130,000 for direct materials...
Weighted-average method, spoilage, equivalent units. (CMA adapted) Consider the following data for November 2017 from MacLean...
Weighted-average method, spoilage, equivalent units. (CMA adapted) Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. MacLean Manufacturing Company uses the weighted-average method of process costing. Physical units...
Prepare a production cost report using FIFO method from the following information and journalize the transfer...
Prepare a production cost report using FIFO method from the following information and journalize the transfer of cost of goods manufactured to the warehouse. Material is added to the product at the beginning of the process and conversion costs are added when process is half completed. Normal spoilage occurred during the period and consisted of 200 units (material, labor, and overhead) and 300 units were considered abnormal spoilage. In Units: WIP beginning 2,000                          Units Stated 7,000 Material Labor Overhead...
Ottawa Manufacturing is a furniture manufacturer with 2 departments: Moulding and Finishing. The company uses the...
Ottawa Manufacturing is a furniture manufacturer with 2 departments: Moulding and Finishing. The company uses the FIFO Method (FIFO) of process costing. In august, the following data were recorded for the Finishing department: Unit of beginning work-in-process inventory 12,500 Percent completion of beginning work-in-process units 25% Cost of direct materials in beginning work-in-process 0 Units started 97,500 Units completed 75,000 Units in ending inventory 25,000 Percentage completion of ending work-in-process units 95% Spoiled units 10,000 Total costs period Direct materials...
Inter Manufacturing Company manufactures expensive chairs. The following data relates to the month of January 20x1....
Inter Manufacturing Company manufactures expensive chairs. The following data relates to the month of January 20x1. Units Beginning Work in Process (1-1-x1) 3,000 Added during the month 12,000 Completed and transferred out (CTO) 13,000 Ending Work in Process (31-1-x1) 1,500 Percentage of Completion Beginning Work in Process (1-1-x1) 60% Ending Work in Process (31-1-x1) 40% Costs added during January Total costs Beginning Work in Process (1-1-x1) $60,300 Costs added during January $160,000 Conversion costs Beginning Work in Process (1-1-x1) $5,200...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.00 and $2.60, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 2,600 Started and completed during the period 43,000 43,000 Transferred out of Filling (completed) 43,000 45,600 Inventory in process, end of period 4,000 2,000 Total...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT