Question

ChemLab manufactures chemicals in a continuous process. The company combines various materials in a specially configured machine at the beginning of the process, and conversion is considered uniform through the period. Occasionally, the chemical reactions among the materials do not work as expected and the output is then considered spoiled. Calculate the units to account for, then calculate the units accounted for. Inspection Inspection at 20% at 45% Inspection at 100% Flow of Production Work in process, beginning Started during March To account for

Answer 1

	Inspection at 20%	Inspection at 45%	Inspection at 100%
Work in process, beginning (25%)	2,800.00	2,800.00	2,800.00
Started during March	36,000.00	36,000.00	36,000.00
To account for	38,800.00	38,800.00	38,800.00
Good units completed and transferred out (2,800 beginning inventory + 36,000 – 2,200 spoiled – 2,400 ending inventory	34,200.00	34,200.00	34,200.00
Normal spoilage (a,b,c)	1,344.00	1,464.00	1,368.00
Abnormal spoilage (2,200 – Normal spoilage)	856.00	736.00	832.00
Work in process, ending (70%)	2400	2400	2400
Accounted for	38,800.00	38,800.00	38,800.00
a) 4% x (36,000 units started – 2,200 units spoiled) = 1,344 ; beginning work-in-process inventory is excluded because it was already 25% complete at March 1 and past the inspection point.
b)  4% x (38,800 units – 2,200) = 1464 because all units passed the 45% completion inspection point in March.
c) 4% x 34,200 = 1368 because 34200 units are fully completed and inspected during March.