1.Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 4% of the good units. Data for December 2017 are as follows:
WIP, beginning inventory 12/1/2017 22,000 units
Direct materials (100% complete) Conversion costs (70% complete)
Started during December 76,200 units
Completed and transferred out 12/31/2017 72,700 units
WIP, ending inventory 12/31/2017 18,700 units
Direct materials (100% complete)
Conversion costs (60% complete)
Costs for December:
WIP, beginning Inventory:
Direct materials $153,000
Conversion costs 77,100
Direct materials added 224,400
Conversion costs added 294,000
Normal spoilage totals ________.
A.6800 units
B.2908 units
C.3892 units
D.3180 units
Normal spoilage totals ________.
A.6800 units
Working:
Calculate total spoiled units |
Total spoiled units = Beginning WIP+Unit started-Unit Completed-Ending WIP |
=22000+76200-72700-18700 |
Total spoiled units = 6800 Units |
1.Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation...
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 22,700 units Direct materials (100% complete) Conversion costs (80% complete) Started...
Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2017 are as follows: WIP, beginning inventory 3/1/2017...
Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80% of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method. WIP, beginning inventory 65,000 units...
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to undetectable defects. Inspection occurs when units are 40%converted. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2017 are as follows: WIP, beginning inventory...
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to undetectable defects. Inspection occurs when units are 40% converted. Spoiled fillets generally constitute 6% of the good fillets. Data for April 2017 are as follows: WIP, beginning...
Mela Incorporated obtains fish and then processes them into frozen fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to nondetectible defects. Inspection occurs when units are 50% converted. Spoiled fillets generally constitute 3.5% of the good fillets. Data for April 2008 are as follows: WIP, beginning inventory 4/1/2008 40,000 fillets Direct materials (100% complete)...
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