Suppl_Problems_Process Costing_08

E at the end of november 2009 there were 4000 units

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e) At the end of November 2009, there were 4,000 units in process, which were estimated to be 70% complete. Assume normal spoilage on 32,000 good units produced, is 1,000 units . Required : Prepare a cost of production report for department II for November 2009 using the weighted- average method, Note: Calculations of unit costs should be rounded to five decimals places. P28 Process Costing – Second Department with Spoilage The Nieforth Co. Ltd. Operates under a weighted-average process cost system. It has two departments, 1 and 2. In department 2, materials are added at the end of the process, following inspection . Normal spoilage is considered to be 3% of good output. Labour and overhead costs are assumed to apply evenly throughout the process. Inventory at the beginning of the period was one-half complete; ending inventory is two-thirds complete. Following are the costs and unit production statistics for the period: Beginning inventory……………………………………….. 2,000 units Received from department 1..……………………………… 8,000 units Completed and transferred to finished goods storeroom……….…………………………... 7,000 units Ending inventory……………………………………………. 1,500 units Transferred from Costs Department 1 Materials Labour Overhead Beginning inventory …………. \$ 6,100 - \$1,400 \$550 Current costs………………….. 23,900 \$7,000 12,000 5,050 5

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Required : . Prepare cost of production report for department 2. Revised 02/11 6
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• Winter '12
• Farrar
• Conversion of units, Second Department

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