Requirement: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 report2. 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 forconversion 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.

Working Notes : 1. Inspection @ 50% stage of completion :…

Answered: Dilage is 5 nt 2 recei

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Requirement:

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.

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