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Question - JYD Corporation uses the process costing system. The following data are available from the books of Department 2. The quality control inspection takes place when the units are 75% completed and materials are added at the start of the process.
Units
Work in process, beg. (40% completed) 10,000
Units received 40,000
Units completed and transferred 40,000
Work in process end (60% completed) ?
Normal lost 2,000
Abnormal lost 3,000
Using weighted average method, calculate the EUP for conversion costs?
a. 52,500
b. 46,750
c. 40,000
d. 42,750
Materials input- 1,000 units costing 10,000 Labour costs- 8,000 Departmental overheads - 6,000. Calculate the average cost per unit in Process 1
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An inventory of spare parts for the robotic equipment would be purchased immediately at a cost of $60,000. This investment in working capital would be maintained throughout the life of the equipment. At the end the parts would be sold for $60,000
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