Question

18-39 Physical units, inspection at various levels of completion, weighted-average process costing SunEnergy produces solar panels. A key step in the conversion of raw silicon to a completed solar panel occurs in the assembly department, where lightweight photovoltaic cells are assembled into modules and connected on a frame. In this department, materials are added at the beginning of the process and conver sion takes place uniformly At the start of November 2017, SunEnergy's assembly department had 2,400 panels in beginning work in process, which were 100% complete for materials and 40% complete for conversion costs. An additional 12,000 units were started in the department in November, and 3,600 units remain in work in process at the end of the month. These unfinished units are 100% complete for materials and 70% complete for conver sion costs The assembly department had 1,800 spoiled units in November. Because of the difficulty of keep ing moisture out of the modules and sealing the photovoltaic cells between layers of glass, normal spoilage is approximately 12% of good units. The department's costs for the month of November are a s follows: Beginning WIP $ 76,800 123,000 Costs Incurred During Period $ 240,000 1,200,000 Direct materials costs Conversion costs 746 CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 1. Using the format on page 728, compute the normal and abnormal spoilage in units for November, as Required suming the inspection point is at (a) the 30% stage of completion, (b) the 60% stage of completion, and (c) the 100% stage of completion Refer to your answer in requirement 1. Why are there different amounts of normal and abnormal spoil- age at different inspection points? 2. 3. Now assume that the assembly department inspects at the 60% stage of completion. Using the weighted-average method, calculate the cost of units transferred out, the cost of abnormal spoilage and the cost of ending inventory for the assembly department in November

Answer 1

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2. the heginmin the inspection point. . A the looy. IngPeeHơnpoln «righed unil have veen mapected Thoem not ger been v ending_ colp have. , but he ohen hove noh he totala S 1800 uni18 3. eauivalent QuivalenuůtS Phuaical cop- beginmng glopt-es dwin g cuyrent- pgiod 1200o 151오X100 , 1512 x60% Abnorm、OISPoilage C60.ingroim) 288 123 288 예p. materials bgド cl begin ning lb,80323000 1,639,8 Prol cog-account by 22l05.