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Albutte, Inc., which uses the weighted average method




Question;Albutte, Inc., which uses the weighted;average method of process costing, has two departments: Production and Finishing.;In the Finishing department, direct materials are added at the beginning of the;process, and conversion costs are incurred evenly throughout the process. The;Finishing department began December with 2,000 units in work-in-process;inventory that were 40% complete and were valued at $10,000 ($8,000 in;transferred-in costs, $500 in direct materials, and $1,500 in conversion;costs). During December, the Finishing Department incurred $5,500 in direct;materials costs and $12,500 in conversion costs. 18,000 units costing $72,000;in the Production department were transferred into Finishing during the month.;15,000 units were finished during December, 500 of which were spoiled (spoilage;is normally 3% of good units). All unfinished units were 50% complete.;Find the value of units completed and transferred;out, ending work-in-process inventory, and the loss due to abnormal spoilage;for the Finishing department.


Paper#45055 | Written in 18-Jul-2015

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