Consider the Following Data for a Cooking Department for the Month

question 149

Essay

Consider the following data for a cooking department for the month of February:

	Physical Units
Work in process, beginning inventory*	11,000
Started during current period	74,000
To account for	85,000
Good units completed and transferred out during current period:
	From beginning work in process	11,000
	Started and completed	50,000
	Good units completed	61,000
Spoiled units	8,000
Work in process, ending inventory~	16,000
Accounted for	85,000

*Direct material,100% complete;conversion costs,25% complete
~Direct material,100% complete;conversion costs,75% complete
Inspection occurs when production is 100 percent completed.Normal spoilage is 11 percent of good units completed and transferred out during the current period.
The following cost data are available:

Work in process, beginning inventory:
	Direct material	$220,000
	Conversion costs	30,000	$ 250,000
Costs added during current period:
	Direct material		1,480,000
	Conversion costs		942,000
Costs to account for		$2,672,000

Required:Prepare a detailed cost of production report.Use the FIFO method.Distinguish between normal and abnormal spoilage.

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Definitions:

MODE.MULT(data range)

A function in spreadsheet programs that returns an array of the most frequently occurring values in a given data range.

MODE.SNGL(data range)

A statistical function that returns the most frequently occurring value in a given data range.

Arithmetic Mean

The sum of a collection of numbers divided by the count of numbers in the collection, commonly known as the average.

Midrange

The statistical measure calculated by taking the average of the highest and lowest values in a data set.