In process costing, spoilage is assumed to take place?
In process costing, spoilage is assumed to take place?
Homework Answers
There is no such assumption in process costing for spoilage. But if the question says like from the past experience it is known that the 1% of input will be lossed then that will be treated as normal loss and if the loss is more than 1% then additional losses are treated as abnormal loss.
Eg:- Input of 10,000 units and 1% is loss as per past experience and the total loss was 150 units then,
10,000*1% = 100 (Normal Loss)
150-100 = 50 (Abnormal Loss)
Normal loss amount are charged to inventory cost. But Abnormal losses are shown in income statement as a loss.
Abnormal spoilage costs are treated the same as normal spoilage for process costing. A. True B....
Abnormal spoilage costs are treated the same as normal spoilage for process costing. A. True B. False
Weighted-Average Process Costing; Spoilage (Appendix) Carson Paint Company, which manufactures quality paint to sell at premium...
Weighted-Average Process Costing; Spoilage (Appendix) Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Labor and overhead are added continuously throughout the process Factory overhead is applied at the rate of s3 per direct labor...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June. Direct materials $ 85,000 Direct labor 26,000 Manufacturing overhead applied 38,000 Total costs to account for in June $ 149,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June. Direct materials $ 82,000 Direct labor 29,000 Manufacturing overhead applied 38,000 Total costs to account for in June $ 149,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold...
Rejected castings in a foundry are treated as spoilage. During the current period, 80 castings (costing...
Rejected castings in a foundry are treated as spoilage. During
the current period, 80 castings (costing $200 each to produce) were
spoiled and sold at a net realizable value of $25 each.
Calculate the cost of spoilage, assuming it is abnormal.
Cost for abnormal
spoilage
$
Prepare the journal entry for normal spoilage.
Account Titles and Explanation
Debit
Credit
Beginning work in process Units started Units completed Ending work in process Spoilage 17,500 units 67,500...
Beginning work in process Units started Units completed Ending work in process Spoilage 17,500 units 67,500 units 64,000 units 17,500 units 3,500 units Beginning work in process direct materials Beginning work in process conversion Direct materials added during month Total costs incurred during month $14,875 $2,450 $63,325 $94,400 Beginning work in process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 70% of direct...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing departm The following information was available for the month of June. Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 81,000 29,000 41,000 $151,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold on account...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following Information was available for the month of June. $ Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 79,000 28,000 40,000 147,00 $ The amounts of work in process at the beginning and end of the month were Immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold...
How does the immune process that causes the hemolytic disease of the newborn take place?
How does the immune process that causes the hemolytic disease of the newborn take place?
process costing system. The following information Giddings Pharmaceutical Company is a maker of drugs for high...
process costing system. The following information Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses pertains to the final department of Giddings's blockbuster drug called Solcax. Beginning work-in-process (40% completed) Transferred-in Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (1/3 completed) Conversion costs in beginning inventory Current conversion costs 800 units 4,000 units 400 units 200 units 3,600 units 600 units $2,560 $6,900 Giddings calculates separate costs of spoilage by computing both normal...
Weighted-Average Process Costing; Spoilage (Appendix) Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Labor and overhead are added continuously throughout the process Factory overhead is applied at the rate of s3 per direct labor...
Rejected castings in a foundry are treated as spoilage. During
the current period, 80 castings (costing $200 each to produce) were
spoiled and sold at a net realizable value of $25 each.
Calculate the cost of spoilage, assuming it is abnormal.
Cost for abnormal
spoilage
$
Prepare the journal entry for normal spoilage.
Account Titles and Explanation
Debit
Credit
Beginning work in process Units started Units completed Ending work in process Spoilage 17,500 units 67,500 units 64,000 units 17,500 units 3,500 units Beginning work in process direct materials Beginning work in process conversion Direct materials added during month Total costs incurred during month $14,875 $2,450 $63,325 $94,400 Beginning work in process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 70% of direct...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing departm The following information was available for the month of June. Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 81,000 29,000 41,000 $151,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold on account...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following Information was available for the month of June. $ Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 79,000 28,000 40,000 147,00 $ The amounts of work in process at the beginning and end of the month were Immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold...
process costing system. The following information Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses pertains to the final department of Giddings's blockbuster drug called Solcax. Beginning work-in-process (40% completed) Transferred-in Normal spoilage Abnormal spoilage Good units transferred out Ending work-in-process (1/3 completed) Conversion costs in beginning inventory Current conversion costs 800 units 4,000 units 400 units 200 units 3,600 units 600 units $2,560 $6,900 Giddings calculates separate costs of spoilage by computing both normal...
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