Process costing-equivalent units-gagnon company

Reference no: EM13817696

Problem: Process Costing - Equivalent Units - Gagnon Company

The Gagnon Manufacturing Company uses a process costing system for its three productiondepartments: Initiation, Assembly, and Finishing. The following data is available for theAssembly department for the month of September:Opening WIPUnits 15,000 Costs -Transferred-in $97,650Direct materials 186,450Conversion costs (60% complete) 77,670 Units transferred in from the Initiation Department 46,000 Units transferred out to the Finishing Department 48,500 Costs added during monthTransferred-in $298,540Direct materials 460,650Conversion costs 382,956 Units in ending WIP (25% completed as to conversion costs) 9,000 The Assembly department adds direct materials when the process if 40% complete. Inspectiontakes place when the process is 75% complete at which time all spoiled units are detected. Theengineering department has concluded that any spoiled units in excess of 1,500 for the month of September can be considered abnormal spoilage.

Required:

Calculate the cost of the units transferred out to finished goods inventory, the value of the ending WIP and the value of abnormal spoilage under (a) the FIFO method and (b) the weighted average method.

Reference no: EM13817696

Questions Cloud

Changes in depreciation accounting ethical : Are your changes in depreciation accounting ethical or legitimate depreciation assumptions? What will be the effects on the Balance Sheet, Income Statement, and profit margins of your actions?

Research five different hybrid cars : In this assignment, you will research five different hybrid cars and evaluate their impact on the environment. Identify the top five most popular choices of hybrid cars. Analyze the advantages and disadvantages of each car's technology, price, manu..

Why do companies prepare business plan : Why do companies prepare business plan - Have you ever created or read about a business plan prior to this course?

Compares to regional and statewide scores : Compare your level of confidence at the time you completed Part I to your confidence level for Part II, when you used this decision aid. Was it helpful? What were its advantages and disadvantages?

Process costing-equivalent units-gagnon company : The Gagnon Manufacturing Company uses a process costing system for its three productiondepartments: Initiation, Assembly, and Finishing.

Explain how court applied the law to the facts of the case : Explain how the court applied the law to the facts of the case

Determine how market commonality and resource impact : Determine how market commonality and resource similarity impact Apple's competitive standing in terms of its main rivals. Provide specific examples to support your response.

Process costing multiple choice-oma inc : Oma's Inc. uses process costing, FIFO method, to cost its products. The following data isavailable for the month of November.

Direct vs absorption costing-broadcast inc : Broadcast Inc. manufactures and sells a single product.Current year sales volume was 50,000 units at a selling price of $86 per unit.

User Account

All Pages