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)Inspection for spoiled units take place when units are 100% completed with respect idirect material, labor, and overhead.15,000 units13,000 units1,500 unitsCost 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 PO.50 per unitRequired:a. Compute the cost per equivalent unit.b. Compute the total cost of batches.Compute the total cost of spoilage.d. Assuming that rework has been completed, how much cost of rework will betransferred to ending inventory?C.

Thanks for the Question: Bartleby Guideline “Since you have posted a question with multiple…

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. 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 direct material, labor, and overhead. 2,000 units 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 spoiled units is PO.50 per unit Required: Compute the cost per equivalent unit. Compute the total cost of batches. a. b. C. Compute the total cost of spoilage.

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. 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 direct material, labor, and overhead. 2,000 units 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 spoiled units is PO.50 per unit Required: Compute the cost per equivalent unit. Compute the total cost of batches. a. b. C. Compute the total cost of spoilage.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required: Prepare å Fi-4 Zealand Company in its production process points out some units as spoiled (normal). Books of accounts shows following data for the month of December: Units started 5,000 units Units completed 3,000 units Normal spoilage 700 units 1,300 units Ending inventory inaing inventory is fully completed with respect to materials. Direct material introduced into production amounted to P80,000. compute the cost per equivalent unit
Cebu Company adds materials at the beginning of the process in Department 1. Data concerning the materials used in November 2021 production are as follows: Units WIP, March 1 Started during March Completed and transferred to next department during March Normal spoilage incurred WIP, March 31 16,000 34,000 36,000 4,000 10,000 1. The equivalent units for the materials unit cost calculation using FIFO is 2. The equivalent units for the materials unit cost calculation using weighted average is
D1.
Please assist with the questions (d) and (e)
Rockwood Industries manufactures wood furniture. In the Lamination Department, varnish is added when the goods are 60% complete as to overhead. The units that are spoiled during processing are found upon inspection at the end of production. Spoilage is considered discrete. Production Data for May 2021 Beginning inventory (80% complete as to labor, 70% complete as to overhead). ..2,000 units ..14,900 units Transferred in during the month. Ending inventory (40% complete as to labor, 20% complete as to overhead)... 3,000 units Normal Spoilage (found during final quality inspection). 200 units Abnormal Spoilage - found at 30% completion of direct labor and 15% of overhead; the sanding machine was misaligned and scarred the chairs).... 400 units P 15,020 P32,352 Prior Department Costs Varnish 14,030 Direct Labor 46,000 Overhead 113,564 P310,674 P343,026 Total Costs to Account for REQUIREMENT Prepare complete cost of production report using FIFO method containing the following: 1. Accounting…
Production Report, No Beginning Inventory Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Work in process, January 1 — Gallons started 400,000 Gallons transferred out 336,000 Direct materials cost $1,200,000 Direct labor cost $1,574,400 Overhead applied $2,361,600 Direct materials are added at the beginning of the process. Ending inventory is 90 percent complete with respect to direct labor and overhead. Required: Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0". Softkin Company Mixing Department Production Report for Current Year Unit Information Units to account for: Number of Units - Select - - Select - Total units to account for fill in the blank 5 Units accounted for: Equivalent Units Physical Flow Direct Materials Conversion…
Better Choice Foods makes a single product using two processes. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of April 20X9, for Process 2. Work-in-process, beginning inventory: -0- Transfer from Process 1: 15,000 units valued at $51.40 each Other manufacturing costs incurred during April: Direct material added Direct labour Manufacturing overhead $513,000 $365,000 $211,000 Normal losses were estimated to be 5% of input during the period. Losses from Process 2 are deemed to be scrap, and sold at $40 per At inspection 1,750 units were rejected as scrap. These units had reached the following degree of completion: Input material Direct material added Conversion costs 100% 50% 30% 12,000 units were completed and transferred to Finished Goods Work-in-process at the end of April had reached the following degree of completion: Input…
What is the work in process inventory - Process 2 T-account?
Requirements:1.Assume loss are normal loss,Prepare the Production Report2.Assume loss are abnormal loss,Prepare the Production Report
A process costing system in your company. Direct material A is placed into production at the beginning of the process, while direct material B is placed into production at the end of the process. Inspection occurs at the end of the process, before the addition of direct material B. Normal spoilage is 5% of good units. For March the company had the following activities: Beginning work-in-process inventory 4,000 units, 30% complete Units placed in production 28,000 unit Good units completed 24,000 units Ending work-in-process inventory 6,000 units, 60% complete Cost of beginning work-in-process $10,000 ($5,500 direct material A, $4,500 conversion) Direct material A costs, current $38,000 Direct material B costs, current $26,400 Conversion costs, current $42,500 Required: Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
Please assist with a, b and c