Acct306 Homework Ch18 - CHAPTER 18 SPOILAGE REWORK AND...

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CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-30 Weighted-average method, spoilage. Solution Exhibit 18-30 summarizes total costs to account for, calculates the equivalent units of work done to date for each cost category, and assigns total costs to units completed (including normal spoilage), to abnormal spoilage, and to units in ending work in process using the weighted-average method.
18-1
18-2 SOLUTION EXHIBIT 18-30 PANEL B: Steps 3, 4, and 5— Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed, to Spoiled Units, and to Units in Ending Work in Process Total Production Costs Direct Materials Conversion Costs (Step 3) Work in process, beginning (given) Costs added in current period (given) Total costs to account for (Step 4) Costs incurred to date Divided by equivalent units of work done to date Cost per equivalent unit (Step 5) Assignment of costs Good units completed and transferred out (20,500 units) $ 7,200 83,466 $90,666 $ 4,500 46,250 $50,750 $50,750 ÷ 28,000 $1.8125 $ 2,700 37,216 $39,916 $39,916 ÷ 25,060 $1.5928 Costs before adding normal spoilage Normal spoilage (2,050 units) (A) Total costs of good units completed and transferred out (B) Abnormal spoilage (1,250 units) (C) Work in process, ending (4,200 units) (A)+(B)+(C) Total costs accounted for $69,809 6,981 76,790 4,257 9,619 $90,666 (20,500 # × 1.8125) + (2,050 # × 1.8125) + (1,250 # × 1.8125) + (4,200 # × 1.8125) + $50,750 + (20,500 # × 1.5928) (2,050 # × 1.5928) (1,250 # × 1.5928 ) (1,260 # × 1.5928) $39,916 *These numbers are all calculated using the unit costs carried out to three decimal places. # Equivalent units of direct materials and conversion costs calculated in Step 2 in Panel A above.
18-3 18-31 FIFO method, spoilage. For the Cleaning Department, Solution Exhibit 18-31 summarizes the total costs for May, calculates the equivalent units of work done in the current period for direct materials and conversion costs, and assigns total costs to units completed and transferred out (including normal

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