Reference no: EM132565343
Grievous Corporation is a large plastic manufacturing company that manufactures plastic armor for storm troopers. Grievous uses a Process Cost system: Materials are added evenly throughout the process, and Conversion costs are uniformly incurred throughout the manufacturing process. Spoilage is detected only at the end of the process.
The following information is available for Grievous Corporation at the beginning of November:
Physical Direct Conversion
Units Materials Costs
Work in process inventory: 21,800 $47,000 $19,500
Percentage complete: 100% 30%
The following information is available at the end of the month of November:
Units started during the month 27,140
Units completed and transferred to finished goods 31,000
Ending work in process inventory (units) 16,700
Normal spoilage percentage of completed units 4%
Cost of direct materials added during the month $181,206
Cost of conversion during the month $65,740
The work in process inventory at the end of November was 60% complete for raw materials, but only 50% complete for conversion costs.
Required:
Question 1: Use these steps to produce final allocation
- Account for flow of Units
- Calculate Equivalent Units( EU)
- Summarize Total costs
- Calculate Cost per EU
- Allocate Total Costs to F/G/ WIP/ Abnormal Spoilage
Question 2: Allocate the costs for the month of November, using the weighted-average method of Process Costing.