Question

Segado, Inc. mass-produces goods in three processes. In the second process, direct materials are added at the beginning, conversion costs are incurred evenly throughout the process, and the normal spoilage rate is 5%. This period, the 90,000 units transferred into the second process had costs of $450,000 attached to them from the first process. The 20,000 units in beginning work-in-process inventory (30% complete) were worth $280,000 ($100,000 in transferred-in costs, $120,000 in conversion costs, and $60,000 in direct materials costs). During the period, the second process cost $303,000 for direct materials and $402,720 for conversion. At the end of the period, 85,000 units had been transferred on to the third process, and 22,000 units from process 2 were only 40% complete.

Enter all dollar values without dollar signs

Round your answers to the nearest dollar except costs per equivalent unit.

Physical units:
Normal spoilage
Abnormal spoilage
Equivalent units:
For goods completed and transferred out (same for all costs)
For goods normally spoiled (same for all costs)
For goods abnormally spoiled (same for all costs)
For ending work-in-process inventory, transferred-in costs
For ending work-in-process inventory, direct materials costs
For ending work-in-process inventory, conversion costs
Cost per equivalent unit:
For transferred-in costs
For direct materials
For conversion costs
The value of:
Good units completed and transferred out
Abnormal spoilage
Ending work-in-process inventory

Answer 1

	Pysical units:
	Normal spoilage		90000*5%			4500
	Abnormal spoilage
	Units transferred to second process				90000
	Less: units transferred to third process				85000
	Units lost				5000
	Less: normal spoilage				4500	500
	Equivalent units:
					Physical Units	Direct Materials	Conversion
	For goods completed and transferred out:
	From beginning work in process:				20000	0	14000
							20000*(100%-30%)
	Statrted and completed				70000	70000	70000
					(90000-20000)
	Normal spoilage				4500	4500	4500
	Abnormal spoilage				500	500	500
	Ending work in process inventory				22000	22000	8800
							(22000*40%)
	Total equivalent units					97000	97800
	Cost per equivalent unit=Total cost to account for/Equivalent units
						Direct Materials	Conversion
	Beginning work in process					60000	120000
	Cost added					303000	402720
	Total cost to account for					363000	522720
	Total equivalent units					97000	97800
	Cost per equivalent units					3.74	5.34
	Value of
						Direct Materials	Conversion	Total
	Good units completed and transferred out
	From beginning work in process:				20000	0	74760	74760
							(14000*5.34)
	Statrted and completed				70000	261800	373800	635600
						(70000*3.74)	(70000*5.34)
								710360
	Abnormal spoilage					1870	2670	4540
						(500*3.74)	(500*5.34)
	Ending work-in-process inventory					82280	46992	129272
						(22000*3.74)	(8800*5.34)