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Cost Accounting   Answer a, b, and c and provide solution.

Cost Accounting   Answer a, b, and c and provide solution.

FINANCIAL ACCOUNTING
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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Cost Accounting

 

Answer a, b, and c and provide solution. 

Use FIFO METHOD Hebert Industries uses a weighted average process costing system. Management has specified that the normal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw material is added at the start of the production process. Spoilage is determined upon inspection at the end of the production process. March processing information follows. Beginning WIP Inventory (30% complete as to conversion) Started during March Completed during March Ending WIP Inventory (20% complete as to conversion) 20,000 units 120,000 units 116,400 units 16,000 units a. How many total units are there to account for? b. How many units were spoiled during processing? Of the spoiled units, how many should be treated as a normal loss? As an abnormal loss? c. What are the equivalent units of production for direct material? For conversion?| I
Transcribed Image Text:Use FIFO METHOD Hebert Industries uses a weighted average process costing system. Management has specified that the normal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw material is added at the start of the production process. Spoilage is determined upon inspection at the end of the production process. March processing information follows. Beginning WIP Inventory (30% complete as to conversion) Started during March Completed during March Ending WIP Inventory (20% complete as to conversion) 20,000 units 120,000 units 116,400 units 16,000 units a. How many total units are there to account for? b. How many units were spoiled during processing? Of the spoiled units, how many should be treated as a normal loss? As an abnormal loss? c. What are the equivalent units of production for direct material? For conversion?| I
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