申論題

Problem Four
The SCU produces basic bed sheets and luxury bed sheets. The luxurious bed sheets use combed cotton and the basic bed sheets use general cotton. Each batch of combed cotton costs $100,000. The cost of each batch of general cotton is half of the cost of combed cotton. Each batch of general cotton can produce 500 basic bed sheets. However, a batch of combed cotton can produce 200 luxury sheets. Both types of bed sheets have four production steps, which are dyeing, cutting, seam and finishing. The special type needs to go through an embroidery after the seam. The labor cost of embroidery is $2,000 per hour. 50 sheets can be embroidered per hour. The cost of embroidery material is $10,000 per batch. Except for embroidery, each production step puts the same resources on these two types of products. The materials for each production step are input at the beginning of each step, but only the materials for the finishing step are input at the end. SCU uses operation costing to record the cost of the two products. The number of units produced this month is 2,000 luxury type and 6,000 basic type. The cost of each production step in the current month is as follows:

Required：

2. Assuming that in the finishing department, the bed sheets are inspected at 90% of the completion, and the materials are put in after the inspection. Normal spoilage is 10% of all good units that pass inspection. The finishing department has no beginning inventory this month, and the production ratio of luxury bed sheets to basic bed sheets is 1:3. A total of 1,600 sheets were in ending work in process (50% completed). A total of 8,000 sheets were transferred-in, and 5,600 sheets were manufactured and transferred out. For current month, according to luxury bed sheets summarize total costs to account for and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. ( Based on original cost data.)