(Appendix 6B)The cost per equivalent unit will be greater when normal losses are charged to good output than when they are charged to manufacturing overhead.
(Appendix 6B)When normal losses are charged to good output a special journal entry is required to account for costs related to spoiled units.
(Appendix 6B)Assuming normal losses are charged to good output the production report will account for lost units but not assigned a value in equivalent units.
Able Inc.uses the weighted-average method in its process costing system.The following data concern the operations of the company's first processing department for a recent month:
Prepare a production report for the department using the weighted-average method.