Jameson Manufacturing Uses the Weighted Average Method of Process Costing

question 50

Essay

Jameson Manufacturing uses the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}& \text {Number } & \text {Production } \\&\underline{ \text {of units } } &\underline{\text { costs }}\\ \text { Beginning work-in-process ( \( 30 \% \) complete) } &40000&\$300000\\ \text { Units started this period (current period production work) } &200000&800000\\ \text { Ending work-in-process ( \(50 \% \) complete) } &30000\\\end{array}$


Additionally,management informs that 20 000 units were spoiled in the period,and this spoilage was detected at the 20% stage of completion.Finally,direct material costs are added at the beginning of the production process,and conversion costs are incurred uniformly throughout the process.Direct material costs are 30% of total beginning WIP costs,while conversion costs are 80% of current period production costs.
Required:
A. How mary total equrvalent units were completed during the year?
B. What was the cost per equivalent unit?
C. What is the spoilage cost for the pariod?
D. How is the spoilage cost treated if it is normal spoilage, or if it is abnormal spoilage?

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Definitions:

Effective Pricing

The strategy of setting a product's price based on the value perceived by the customer, market demand, and competition, aiming to maximize both profit and customer satisfaction.

Marketer

A person or company involved in the process of promoting, selling, and distributing products or services to potential customers.

Customer-Oriented

An approach by businesses that focuses on creating a positive experience for customers through tailored services and products that meet their needs.

Pricing Strategy

A method or model used by businesses to set the selling price for their products or services, taking into account factors like cost, competition, target market, and overall business objectives.