19.3 spoilage in process costing using weighted average and FIFO

Question 1

the stage of the productioon process at which products are examined to determine whether they are acceptable or unacceptable units

Answer 1

inspection point

Question 2

five steps for process costing from chapter 18 modified for process costing with spoilage

Answer 2

1. summarize the flow of physical units of output
2. compute output in equivalent units
3. summarize total costs to account for
4. compute cost per equivalent unit
5. assign costs to units completed, spoiled units, and to units in ending work in process inventory

Question 3

total spoilage equation

Answer 3

total spoilage =
(units in beginning wip inventory + units started) - (good units completed and transferred out - units in ending wip inventory)

Question 4

abnormal spoilage equation

Answer 4

abnormal spoilage =
total spoilage - normal spoilage

Question 5

under using the weighted average method for spoilage
cost per good unit completed and transferred out of the process equation

Answer 5

cost per good unit completed and transferred out of the process =
totala costs transferred out (including normal spoilage) / number of good units produced