Q8 uses process costing. All materials are added at the beginning of the process
ID: 2365338 • Letter: Q
Question
Q8 uses process costing. All materials are added at the beginning of the process. The normal spoilage rate is the 11% of good units completed.The cost of the beginning work-in-process in the Month of May is $3,600,000, including $1,880,000 of input of materials, 130,000 units, and $1,580,000 for conversion costs. The beginning work-in-process is 77% complete.
During May, the input includes the $7,480,000 for materials, 960,000 units and $9,220,000 for conversion costs. The amount of good units finished is 970,000 units. In addition, the amount of ending work-in-process in May is 120,000 units with 70% complete. The abnormal spoilage is 23,000 units with 100% complete.
Using the FIFO method, the dollar value of cost of finished goods.
A) $15,144,622
B) $18,267,981
C) $19,228,956
D) $6,259,239
E) $26,655,970
Explanation / Answer
A) $15,144,622
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