Assume that 800 units were worked on during a period in which a total of 700 good units were completed. Normal spoilage consisted of 50 units; abnormal spoilage, 40 units. Total production costs were $3,600. The company accounts for abnormal spoilage separately on the income statement as a loss due to abnormal spoilage. Normal spoilage is not accounted for separately. What is the cost of the good units produced?

Assume that 800 units were worked on during a period in which a total of 700 good units were completed. Normal spoilage consisted of 50 units; abnormal spoilage, 40 units. Total production costs were $3,600. The company accounts for abnormal spoilage separately on the income statement as a loss due to abnormal spoilage. Normal spoilage is not accounted for separately. What is the cost of the good units produced?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 27E: Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the...

See similar textbooks

Similar questions

Assume 550 units were worked on during a period in which a total of 500 good units were completed. Normal spoilage consisted of 30 units; abnormal spoilage, 20 units. Total production costs were $2,200. The company accounts for abnormal spoilage separately on the income statement as loss due to abnormal spoilage. Normal spoilage is not accounted for separately. What is the cost of the good units produced?
I need help finding the accurate solution to this general accounting problem with valid methods.
Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the year, 25,000 units were produced. Which of the following statements represents the correct application of the Taguchi loss function? a. The hidden costs of internal failure are 500,000. b. The hidden costs of external failure are 500,000. c. The costs of detection activities are 20 per unit inspected. d. The total external costs are 500,000.
Verde Company reported operating costs of 50,000,000 as of December 31, 20x5, with the following environmental costs: Required: 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. What is the message of this report? 2. Prepare a pie chart that shows the relative distribution of environmental costs by category. What does this report tell you? 3. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? Offer possible reasons for this decision. If consciously avoided, is this decision unethical?
I am looking for help with this general accounting question using proper accounting standards.
Stahman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Stahlman produces plastic sheets that vary in thickness and grade. For one of its large-volume products, it was determined that k = 30,000 and T = 0.28 inches in diameter. A sample of four units produced the following values: Required: 1. Calculate the average loss per unit. 2. Assuming that 100,000 units were produced, what is the total hidden cost? 3. Assume that the multiplier for Stahmans hidden external failure costs is six. What are the measured external costs? Explain the difference between measured costs and hidden costs.
Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. Identify whether the following costs are relevant or irrelevant then determine the minimum selling price for selling the defective units.
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $52,800 or reworked for $75,200 and then sold for $137,600. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Scrap Rework ces Cost of reworked units Income Incremental income (b) The company should: $ 0 $ 0
I need help with this general accounting question using standard accounting techniques.
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $48,000 or reworked for $78,400 and then sold for $144,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? 4) Sempor Red Analysis Revenue from sorappedworked un Cast of reworked units Income incrementalne by The company should Rework
A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $37,700 or reworked for $59,800 and then sold for $109,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income Incremental income Scrap Rework (b) The company should:
For each cost category, compute equivalent units. Show physical units in the first column of your schedule.