Question

Please by detiels !!

Miramar, Inc. uses a weighted-average process costing system which recognizes normal spoilage as 5% of good output. During the current period, 14,000 units were started and 10,000 units completed. Materials are added at the beginning of the process, conversion costs occur uniformly, and the inspection point is at the 70% point. Beginning work in process was 6,000 units, 40% complete, and ending work in process 9,000 units, 80% complete. The cost per equivalent unit for material was $1.00 and for conversion costs $3.00.

Required: compute the following

1. The number of units if abnormal spoilage

2. The cost of good units completed

Answer 1

Particulars	Amount (in $)	Particulars	Amount (in $)
Beginning Work in process	6000	Units Completed	10,000
Units Started	14,000	Normal Spoilage - 5%	500 (10,000 x 5%)
		Abnormal Spoilage (Balance to tally Account)	500
		Ending Work in Inventory	9,000
Total	20,000		20,000
Number of units in Abnormal Spoilage = 500 Units
Cost of good units completed = ( Material costs + Conversion costs ) x Completed Units                                                               =   ( $1 + $3) x 10,000                                                               =   $40,000
Cost of good units completed   = $40,000