determined to be spoiled (normal or abnormal) and later sold after rework. The booksP11-5 Teacup Company manufactures quality tea. During production process some units areand records showed following data for the month of July.2,000 unitsOpening inventory(fully completed with respect direct material, 30 % withrespect to labor and overhead)Started during the monthCompleted during the monthEnding inventory(fully completed with respect to material, 80%completed with respect to labor and overhead)15,000 units13,000 units1,500 unitsInspection for spoiled units take place when units are 100% completed with respectdirect material, labor, and overhead.Cost incurred on materials (current and inventory)Cost incurred on labor and overhead (current and inventory) 112,000P80,000TotalP192,000Normal spoilage considered 10% of production costNormal spoilage able to be reworked considered 2% of spoiled unitsCost to complete reworked units is P3.00 per unitRecovery value of spoiled units is P0.50 per unitRequired:a.Compute the cost per equivalent unit.b.Compute the total cost of batches.C.Compute the total cost of spoilage.Assuming that rework has been completed, how much cost of rework will betransferred to ending inventory?d.

The cost of rework is 2% of units of normal loss. A normal loss is 10% of production cost.Calculate…

an Opening inventory (fully completed with respect direct material, 30 % with respect to labor and overhead) Started during the month Completed during the month Ending inventory (fully completed with respect to material, 80% completed with respect to labor and overhead) 2,000 units Cost incurred on materials (current and inventory) Cost incurred on labor and overhead (current and inventory) Total 15,000 units 13,000 units 1,500 units Inspection for spoiled units take place when units are 100% completed with respect to direct material, labor, and overhead. P80,000 112,000 P192,000

an Opening inventory (fully completed with respect direct material, 30 % with respect to labor and overhead) Started during the month Completed during the month Ending inventory (fully completed with respect to material, 80% completed with respect to labor and overhead) 2,000 units Cost incurred on materials (current and inventory) Cost incurred on labor and overhead (current and inventory) Total 15,000 units 13,000 units 1,500 units Inspection for spoiled units take place when units are 100% completed with respect to direct material, labor, and overhead. P80,000 112,000 P192,000

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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Question. Abnormal spoilage is 155 units and normal spoilage is 620 units. Beginning work-in-process inventory consisted of 8,800 units; 24,000 units were started; and 26,600 units were completed this period. How many units are in ending work-in-process?
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Units Beginning inventory of 4,000 units that are 100 percent complete for materials and 22 percent complete for conversion. • 14,500 units started during the period. Ending inventory of 2,700 units that are 14 percent complete for conversion. Manufacturing Costs Beginning inventory was $19,200 ($8,900 materials and $10,300 conversion costs). Costs added during the month were $28,600 for materials and $53,000 for conversion ($27,500 labor and $25,500 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for Morch. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process. Complete this question by entering your answers in the tabs below. Ces Required 1 Required 2 Required 3 Calculate the number of equivalent units of production for materials and conversion…
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determined to be spoiled (normal or abnormal) and later sold after rework. The books P11-5 Teacup Company manufactures quality tea. During production process some units are and records showed following data for the month of July. 2,000 units Opening inventory (fully completed with respect direct material, 30 % with respect to labor and overhead) Started during the month Completed during the month Ending inventory (fully completed with respect to material, 80% completed with respect to labor and overhead) Inspection for spoiled units take place when units are 100% completed with respect i direct material, labor, and overhead. 15,000 units 13,000 units 1,500 units Cost incurred on materials (current and inventory) Cost incurred on labor and overhead (current and inventory) 112,000 P80,000 Total P192,000 Normal spoilage considered 10% of production cost Normal spoilage able to be reworked considered 2% of spoiled units Cost to complete reworked units is P3.00 per unit Recovery value of…
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