Problem:
(Cost assignment) Data below summarize operations for GreenerGrass Companyfor March 2001. The company makes five-gallon containers of weed killer/fertilizer. All material is added at the beginning of the process.
|
COSTS
|
Material
|
Conversion
|
Total
|
|
|
Beginning inventory
|
$ 30,000
|
$ 3,600
|
$33,600
|
|
|
Current period
|
885,120
|
335,088
|
1,220,208
|
|
|
Total costs
|
$915,120
|
$338,688
|
$1,253,808
|
|
|
UNITS
|
|
|
Beginning inventory (30% complete-conversion)
|
6,000 units
|
|
Started
|
180,000 units
|
|
Completed
|
152,000 units
|
|
Ending inventory (70% complete-conversion)
|
20,000 units
|
|
Normal spoilage
|
4,800 units
|
|
|
|
|
|
|
Spoilage is detected at inspection when the units are 60 percent complete.
a. Prepare an EUP schedule using the weighted average method.
b. Determine the cost of goods transferred out, ending inventory, and abnormalspoilage.