Question
Nrew Company manufactures furniture in two departments: molding and finishing. It uses a
processcosting system. For March, the company had the following activities for the finishing
department:
Total costs added during the period
Direct materials are placed into production when production is complete. Conversion costs
are added evenly during the production process. Normal spoilage is of all good units.
Spoiled units are disposed of at zero net disposal value.
Required:
Prepare a production cost worksheet under a Weighted average method and b FIFO
method, given the following independent cases. Show your calculations for number of
units for normal spoilage and abnormal spoilage.
a assuming inspection point is at stage of production
b assuming inspection point is at stage of production
c assuming inspection point is at stage of production
