Physical units, inspection at various stages of completion. Chemet manufactures chemicals in a continuous process. The company combines various materials in a specially congured machine at the beginning of the process, and conversion is considered uniform through the period. Occasionally, the chemical reactions among the materials do not work asexpected and the output is then considered spoiled. Normal spoilage is 4% of the good units that pass inspection. The following information pertains to March 2017: Beginning inventory2,500 units (100% complete for materials; 25% complete forconversion costs)30,0002,100 (100% complete for materials; 70% complete forconversion costs)Units startedUnits in ending work in processChemet had 1,900 spoiled units in March 2017.Using the format on page 728, compute the normal and abnormal spoilage in units, assuming the inspec-tion point is at (a) the 20% stage of completion, (b) the 45% stage of completion, and (c) the 100% stage ofcompletion.Required

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Answered: Beginning inventory 2,500 units (100%…

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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Physical units, inspection at various stages of completion. Chemet manufactures chemicals in a continuous process. The company combines various materials in a specially congured machine at the beginning of the process, and conversion is considered uniform through the period. Occasionally, the chemical reactions among the materials do not work as
expected and the output is then considered spoiled. Normal spoilage is 4% of the good units that pass inspection. The following information pertains to March 2017:

Beginning inventory
2,500 units (100% complete for materials; 25% complete for
conversion costs)
30,000
2,100 (100% complete for materials; 70% complete for
conversion costs)
Units started
Units in ending work in process
Chemet had 1,900 spoiled units in March 2017.
Using the format on page 728, compute the normal and abnormal spoilage in units, assuming the inspec-
tion point is at (a) the 20% stage of completion, (b) the 45% stage of completion, and (c) the 100% stage of
completion.
Required

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