Question

The Bangles Company uses the average method of process costing in its only department. The company began operations in March. The company produces bangles and each bangle requires both Material A (added at the beginning of processing) and Material B (added at the 30% point in processing). All spoilage is detected at the 100% point in processing. During March, the company started 20,000 units and completed 16,000 units. The ending Work in Process for March was 80% done with respect to processing. There was no spoilage during March. The unit costs for March were $3 for Material A, $5 for Material B, and $10 for conversion cost.

In April, the company started 36,000 units. The ending Work in Process for April consisted of 5,000 units that were 20% complete as to processing. During April, 1,000 units spoiled, and all of these spoiled units were considered to be abnormal spoilage. The total costs incurred during April included $118,000 for Material A, $162,000 for Material B, and $292,000 for conversion cost.

Prepare a complete equivalent units chart for April. Remember to use the average method. Copy and paste the following into your answer space and then fill in the numbers as needed. You will need to figure out how many columns should be on your chart and label them, please. Questions 23 through 25 will also refer to this information.

B)   Compute the unit costs for April. Round your answers to the nearest cent, if needed.

C) Compute the Cost of Goods Manufactured for April.

D) Compute the Loss From Abnormal Spoilage for April. Refer to questions 22 and 23 as needed.

Answer 1