Dilage is 5 nt 2 recei

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Assume normal spoilage of 5% is discovered at inspection point wherein inspection point is @ 50% stage of completion and 70% of materials is added after the inspection point and the remaining 30% is added at the end of the production. Prepare the production report

2. Assume normal spoilage of 5% is discovered at inspection point wherein inspection point is @ 70% stage of completion and 70% of materials is added after the inspection point and the remaining 30% is added at the end of the production. Prepare the production report

The JBriones Company uses process costing in its two producing departments. The following information pertain to Department 2 for November.
Normal spoilage is 5% of output; inspection and identification of spoilage take place at the end of the process; materials are added after inspection.
Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for
conversion costs.
A total of 16,000 units were completed and transferred to finished goods. At the end of the month, 10,000 units were still in process, estimated to be 60%
complete as to conversion costs.
Transcribed Image Text:The JBriones Company uses process costing in its two producing departments. The following information pertain to Department 2 for November. Normal spoilage is 5% of output; inspection and identification of spoilage take place at the end of the process; materials are added after inspection. Department 2 received 28,000 units from Department 1 at a cost of P280,000. Department 2 costs were P24,000 for materials and P180,000 for conversion costs. A total of 16,000 units were completed and transferred to finished goods. At the end of the month, 10,000 units were still in process, estimated to be 60% complete as to conversion costs.
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