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Company X uses process costing and uses a weighted average cost flow. In this ...
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Company X uses process costing and uses a weighted average cost flow. In this department:
· direct material 1 is added at the end of the process;
· direct material 2 is added homogenously between 10% and 40% of the process;
· direct material 3 is added homogenously between 50% and 70% of the process; and
· conversion costs are added evenly.
The company presented the following information:
COSTS PER EUP
| ||||
DM 1
|
DM 2
|
DM3
|
CC
| |
January
|
$7
|
$15
|
$2
|
$4
|
Compute the cost of one spoiled unit for two different scenarios:
inspection when units are 30% complete and inspection when units are 60%.