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Forrests Gameboards company manufactures games in three departments using a process cost system with an average cost flow assumption. Selected cost and production data for the Creation Department, the second department in the production process, for the month just ended, are as follows:
The games are inspected at the end of the process in the Creation Department to detect any spoiled batches. Ending inventory is 75% complete as to materials and 25% complete as to conversion costs. Spolage is assumed to occur at the end of the process.
REQUIRED
1. Compute the equivalent units of production for each cost element in the Creation Dep. for the month just ended.2. Determine the average cost per equivalent unit for each cost element.
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Process costing would be most applicable
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