ACME Incorporated has five processing departments through which all product flows. Information for Department 2...
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Accounting
ACME Incorporated has five processing departments through which all product flows. Information for Department 2 for the most recent month is as follows:
Beginning work in process inventory in Department 2 consisted of 3,000 units that were 60% complete.
During the month, 61,000 units were received from Department 1.
58,000 good units were completed and transferred to Department 3.
When the units are 25% complete, they are inspected and all material is then added to the good units.
At the end of the month, 5,000 units in Department 2 were 75% complete. Remaining units were considered normal spoilage.
Normal spoilage is charged to manufacturing overhead.
Required: Prepare the first portion of the production report for Department 2: Quantity Schedule and the Equivalent Units of Production.
Which costing system is ACME Incorporated using? Why is that costing system appropriate for this company?
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