DPC manufactures medical testing strips in a continuous process environment.
Direct materials are added at the beginning of the process. Conversion costs are added throughout the manufacturing process. The manufacturer has a computer-aided quality control step that rejects 1.5% of the production for defects.
- Compute the numbers for normal and abnormal spoilage.
- Compute the equivalent units.
- Compute the cost per unit completed and transferred out of the process.
- Summarize the total costs to account for, compute the cost per equivalent units, and assign costs.
Follow the instructions on the Data tab of the worksheet linked in Module 4. Show all calculations within the cells of the Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. You must also include a detailed explanation of each journal entry that you make or do not make on each date to convey your thought process. There should be no hard coding of solutions.
Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.
Submit your downloaded and completed Excel file (with your name added to the file name) to the CT Assignment dropbox for Module 4.