Scott Company has two departments, Cutting and Shapping that it uses weighted average process costing for. Materials are added at the beginning of both departments- conversion costs occur uniformly during the process. For the month of March both departments were 25% complete for conversion of WIP. Beginning inventories were both 40% complete.
| Following is additional informaion: |
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Cutting |
Shaping |
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| Units in beginning inventory |
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1,000 |
3,000 |
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| Units started this month |
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9,000 |
7,400 |
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| Good units transerred out |
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7,400 |
6,000 |
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| Normal spoilage |
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10% |
5% |
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| Ending Inventory |
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1,600 |
4,000 |
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| Beginning Material Inventory cost |
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$10,000 |
$15,000 |
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| Beginning Cnversion inventory cost |
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$20,000 |
$15,000 |
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| Material costs incurred during March |
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$150,000 |
$175,000 |
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| Conversion costs incurred during March |
$200,000 |
$250,000 |
There is no unaccouned for inventory; the inventory that is not shown above is all considered ABNORMAL spoilage. (inspection of goods is done at the end of the Cutting process and half way through shaping.)
Required:
1 What is the total inventory value and per unit cost of inventory transferred from Cutting to Shaping?
ONLY DO THE COSTS FOR CUTTING DEPARTMENT!!
2 What is the cost of remaining in Work-in-process in Cutting?
Clearly label and show calculations for Equivalent Units & Cost per Equivalent Units & Costs of Inventory.