A company produces 12,000 units of which 300 are spoiled units because the process, even thoughcarefully and efficiently executed is unable to produce good units 100% of the time. Another 50 units arespoiled because machines broke down and there also were operator errors. What is the normal spoilagerate?Answer in decimal format (O.XXXX) and round to four decimal places.

Step 1: The 300 spoiled units are normal spoilage and the 50 spoiled units are abnormal spoilage so…

Answered: A company produces 12,000 units of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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900 units are introduced in a process in which normal loss is 20%. If the actual output of the process is 650 units, then there is... a. Normal gain O b. Neither abnormal loss nor abnormal gain c. Abnormal Loss d. Abnormal gain
Ferdon inc. company started job #4 with 32 units. 7 units were rejected upon inspection. normal spoilage is 5 units. costs prior to inspection amount to $1,450 per unit and the spoiled units have a salvage value of $520 per unit. what is the cost per unit of the good units in job #4
Catriona Company completed 300 units of customized jewelry. The product cost per unit: Direct materials P8,400 Direct labor 500 Factory overhead 750 P9,650 However, upon quality inspection, 20 units were found to be spoiled. The spoiled goods are sold for P138,400. The spoilage is due to customer's preferences. All good items and spoiled items are sold. How much is the product cost per unit?
Prawitt Company incurred an activity cost of $103,500 for inspecting 30,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 30,000 units of production, the inspection activity was limited to a random selection of 4,000 units out of the 30,000 units of production. Determine the inspection activity cost per unit on 30,000 units of total production both before and after the improvement. If required, round per unit amounts to the nearest cent.Inspection activity before improvement fill in the blank 1 of 2$ per unitInspection activity after improvement fill in the blank 2 of 2$ per unit
Galaviz Company's quality cost report is to be based on the following data: Net cost of spoilage Test and inspection of in-process goods Supplies used in testing and inspection Quality engineering Downtime caused by quality problems Systems development Supervision of testing and inspection activities Cost of field servicing and handling complaints Lost sales due to poor quality Required: Complete the following Quality Cost Report. $ 103,000 $ 49,000 $ 111,000 $ 117,000 $ 75,000 $ 30,000 $ 77,000 $ 66,000 $ 42,000 Galaviz Company Quality Cost Report Prevention costs Total prevention cost Appraisal costs
Please show the computation. Thank you!
Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,100 and direct labor of $1,100. Overhead is applied at the rate of 110 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $600 and direct labor costing $300. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage. Required: 1. Calculate the cost of the Tramel job. $ 2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank. 3. What if the additional rework required $600 of…
A production manager finds that for every 1,000 units of output his company produces, 5.8% is defective (i.e. waste). If the production process of this company uses 40 units of material to produce 120 units of output, determine the quantity of material and the output level that will be required to produce 142,500 non-defective units. Use it to answer questions 48-52. 48. What is the number of defective units for every 1000 units of output? (a) 58 (b) 580 (c) 600 (d) 700 49. To produce 142,500 non-defective units, the output level required is: (a) 142,500 (b) 142,765 (c) 150,675 (d) 150,765 50. How many defective units will be produced for an output of 136,000? (a) 6580 (b) 7888 (c) 8250 (d) 9000 51. If 40 units of material is required to produce 120 units of output, what quantity of material will be used to produce the output in Q63 above? (a) 47500 (b) 47588 (c) 50225 (d) 50255 52. If the company produced the output of 136,000 instead of the 142,500, what will be the percentage in…
2. At the beginning of the month, a supplier of a component used in our product notified us that, because of a minor design improvement, the price will be increased by 10% above the current standard price of $125 per unit. As a result of the improved design, we expect the number of defective components to decrease by 110 units per month. On average, 2,640 units of the component are purchased each month. Defective units are identified prior to use and are not returnable. Effect on materials price variance $ 0 Effect on materials quantity variance $ 0
Solve the word problem for the portion, rate, on base. A quality control process finds 25.6 defects for every 6400 units of production. What percent of the production is defective? 40 Ex %
The following table presents the flow of production in units. Assume that there are 5,000 total spoiled units at each stage of completion and that the normal spoilage rate is 3% of good units passing the inspection point. What is the number of abnormal spoiled units recognized at the 40% stage of completion? Click the icon to view the flow of production table. A. 3,500 B. 3,260 C. 3,200 D. 3,350 E. 3,050 Flow of Production Work-in-process beginning (20% complete) Started during the month To account for Good units completed and transferred Normal spoilage Abnormal spoilage Work-in-process ending inventory (30% complete) To account for Physical Units Inspection at Stage of Completion at 15% at 40% at 100% 10,000 10,000 10,000 55,000 55,000 55,000 65,000 65,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 58,000 ? ? 3,000 65,000 - X
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