Assignment:
Q: Scott Company has two departments, Cutting and Shapping that it uses weighted average process costing for. Materials are added at the beginning of both departments- conversion costs occur uniformly during the process. For the month of March both departments were 25% complete for conversion of WIP. Beginning inventories were both 40% complete.
Following is additional information:
| Cutting |
Shaping |
|
|
|
|
|
|
|
|
| Units in beginning inventory |
|
1,000 |
3,000 |
|
|
|
|
|
|
|
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| Units started this month |
|
|
9,000 |
7,400 |
|
|
|
|
|
|
|
|
| Good units transerred out |
|
7,400 |
6,000 |
|
|
|
|
|
|
|
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| Normal spoilage |
|
|
10% |
5% |
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|
|
|
|
|
|
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| Ending Inventory |
|
|
1,600 |
4,000 |
|
|
|
|
|
|
|
|
| Beginning Material Inventory cost |
|
$10,000 |
$15,000 |
|
|
|
|
|
|
|
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| Beginning Cnversion inventory cost |
|
$20,000 |
$15,000 |
|
|
|
|
|
|
|
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| Material costs incurred during March |
|
$150,000 |
$175,000 |
|
|
|
|
|
|
|
|
| Conversion costs incurred during March |
$200,000 |
$250,000 |
There is no unaccouned for inventory; the inventory that is not shown above is all considered ABNORMAL spoilage. (inspection of goods is done at the end of the Cutting process and half way through shaping.)
Required:
1 What is the total inventory value and per unit cost of inventory transferred from Cutting to Shaping?
2 What is the cost of remaining in Work-in-process in Cutting?
Clearly label and show calculations for Equivalent Units & Cost per Equivalent Units & Costs of Inventory