1. How many spoiled units were considered as abnormal spoilage? 2. What is the equivalent unit of production for direct materials? 3. What is the equivalent unit of production for conversion costs?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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UNO Co's second department uses the FIFO method. On
November 1, the beginning work in process of 45,000
units is 70% complete. During November, 160,000 units
were transferred in from the first department of UNO's
production cycle. Furthermore, the number of units in the
second department increased by 80,000 units. 240,000
units were completed by the second department during
November. On November 3O, the ending work in process,
comprised of 42,500 units, is 90% complete. Inspection
point is at 95% conversion. Materials are added at 95%
conversion immediately after the inspection point. The
acceptable level of normal spoilage per month is a quarter
of 1% of all units placed into production in the current
month, after considering accretion, if any.
1. How many spoiled units were considered as abnormal spoilage?
2. What is the equivalent unit of production for direct materials?
3. What is the equivalent unit of production for conversion costs?
Transcribed Image Text:UNO Co's second department uses the FIFO method. On November 1, the beginning work in process of 45,000 units is 70% complete. During November, 160,000 units were transferred in from the first department of UNO's production cycle. Furthermore, the number of units in the second department increased by 80,000 units. 240,000 units were completed by the second department during November. On November 3O, the ending work in process, comprised of 42,500 units, is 90% complete. Inspection point is at 95% conversion. Materials are added at 95% conversion immediately after the inspection point. The acceptable level of normal spoilage per month is a quarter of 1% of all units placed into production in the current month, after considering accretion, if any. 1. How many spoiled units were considered as abnormal spoilage? 2. What is the equivalent unit of production for direct materials? 3. What is the equivalent unit of production for conversion costs?
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