Atlantic Manufacturing Company uses process costing.All materials are added at the beginning of the process.The normal spoilage rate is 10% of good units completed.
The cost of the beginning work-in-process in the month of May is $3,000,000,including $1,600,000 of input of materials,200,000 units,and $1,400,000 for conversion costs.The beginning work-in-process is 70% complete.
During May,the input includes $6,400,000 for materials,800,000 units and $8,200,000 for conversion costs.There were 800,000 good units finished.In addition,the ending work-in-process in May is 100,000 units,60% complete.The abnormal spoilage is 20,000 units.All spoilage occurred when all processing was complete,at the final inspection.
Required: Use the weighted-average method to calculate: (1)The dollar value of abnormal spoilage.(2)The cost of the good units finished.(3)The cost of ending work-in-process inventory.

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The Answer of Atlantic Manufacturing Company uses process costing.All materials are added at the beginning of the process.The normal spoilage rate is 10% of good units completed.
The cost of the beginning work-in-process in the month of May is $3,000,000,including $1,600,000 of input of materials,200,000 units,and $1,400,000 for conversion costs.The beginning work-in-process is 70% complete.
During May,the input includes $6,400,000 for materials,800,000 units and $8,200,000 for conversion costs.There were 800,000 good units finished.In addition,the ending work-in-process in May is 100,000 units,60% complete.The abnormal spoilage is 20,000 units.All spoilage occurred when all processing was complete,at the final inspection.
Required: Use the weighted-average method to calculate: (1)The dollar value of abnormal spoilage.(2)The cost of the good units finished.(3)The cost of ending work-in-process inventory.

Atlantic Manufacturing Company Uses Process Costing