Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows: WIP, beginning inventory 12/1/12--------------20,000 units Direct materials(100% complete) Conversion costs (75% complete) Started during December------ -80,000 units Completed and transferred out 12/31/12----76,800 units WIP, ending inventory 12/31/12--------------16,000 units Direct materials(100%complete) Conversion costs (65% complete) Costs for December WIP, beginning inventory Direct materials --- Conversion costs------- -100,000 ----60,000 Direct materials added--- Conversion costs added-- What is the number of total spoiled units? ---200,000 --280,000
Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows: WIP, beginning inventory 12/1/12--------------20,000 units Direct materials(100% complete) Conversion costs (75% complete) Started during December------ -80,000 units Completed and transferred out 12/31/12----76,800 units WIP, ending inventory 12/31/12--------------16,000 units Direct materials(100%complete) Conversion costs (65% complete) Costs for December WIP, beginning inventory Direct materials --- Conversion costs------- -100,000 ----60,000 Direct materials added--- Conversion costs added-- What is the number of total spoiled units? ---200,000 --280,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Craft Concept manufactures small tables in its Processing Department. Direct materials are
added at the initiation of the production cycle and must be bundled in single kits for each
unit. Conversion costs are incurred evenly throughout the production cycle. Before
inspection, some units are spoiled due to non-detectible materials defects. Inspection occurs
when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data
for December 2012 are as follows:
WIP, beginning inventory 12/1/12--------------20,000 units
Direct materials(100%complete)
Conversion costs (75% complete)
Started during December------------- --80,000 units
Completed and transferred out 12/31/12----76,800 units
WIP, ending inventory 12/31/12--------------16,000 units
Direct materials (100% complete)
Conversion costs (65% complete)
Costs for December
WIP, beginning inventory
Direct materials ----
Conversion costs-----
-100,000
---60,000
---200,000
--280,000
Direct materials added----
Conversion costs added---
What is the number of total spoiled units?
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