Reference no: EM131920324

Problem - Acme Company uses the weighted-average method in to estimate product costs, and reports the following costs for last month for the first department of a three stage production process:

Beginning work in process:

Units 400

Material cost $3,100

Conversion costs $3,900

Percentage of completion as to materials 55%

Percentage of completion as to conversion costs 25%

Units started 7,200

Units transferred to the next department 6,600

Material cost added $ 85,800

Conversion costs added $ 248,200

Ending work in process:

Units 1,000

Percentage complete as to materials 85%

Percentage complete as to conversion costs 70%

a) What is the cost of the ending work in process of the department?

b) What is the cost of the units transferred to the next department?

c) Identify the type of product costing system used by Acme, and an alternative method, and state define and distinguish the two methods.

d) What does Acme's choice of costing system tell you about the product Acme makes and sells?

Note: To reduce rounding error, please carry out all intermediate computations to at least four decimal places.