ACC 512 – Lake Surf Company uses an automated process
Question 1: Process costing (20 marks in total) Lake Surf Company uses an automated process to clean and polish its merchandise items. Normal spoilage is 5% of the goods units and is detected at the end of the process. For March 2017, the company conducted the following activities: Units Beginning work in process inventory: 3,000 Items [Direct material – 100%] [Conversion costs – 25%] Units placed in production 12,000 units Unites Completed 9,000 units Ending work in process inventory: 5,000 units [Direct material – 100%] [Conversion costs – 60%] Costs Cost of beginning work in process: Direct materials $ 2,100…
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