Grace Company manufactures picture frames of all sizes and shapes and uses job-order costing system. There is always some spoilage in each production run. The following costs relate to the current run: Estimated overhead (exclusive of spoilage) Spoilage (estimated) Sales value of spoiled frames Labor hours P 160,000 25,000 11,500 100,000 The actual cost of a spoiled picture frame is P7.00. During the year, 170 frames are considered spoiled. Each spoiled frame can be sold for P4. The spoilage is considered a part of all jobs (factory overhead). What amount should be debited to Factory Overhead Control to record spoilage pertaining to unrecovered cost?
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- 12. Treasures Company manufactures picture frames of all sizes and shapes and uses a job-order costing system. There is always some spoilage in each production run. The following costs relate to the current run: Estimated overhead (exclusive of spoilage) $160,000 Spoilage (estimated) $ 25,000 Sales value of spoiled frames $ 11,500 Labor hours 100,000 The actual cost of a spoiled picture frame is $7.00. During the year 170 frames are considered spoiled. Each spoiled frame can be sold for $4. The spoilage is considered a part of all jobs. Required: a. Labor hours are used to determine the predetermined overhead rate. What is the predetermined overhead rate per direct labor hour? b. Prepare the journal entry needed to record the spoilage. c. Prepare the journal entry if the spoilage relates only to Job #12 rather than being a part of all production runs.Gueess Aparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If spoilage is due to customer’s intervention, how much is the total gross profit on the order?Prudoe Compounds produces a variety of chemicals used by auto manufacturers in their painting processes. With each batch of chemicals produced, some spoilage naturally occurs. Prudoe Compounds includes normal spoilage cost in its predetermined OH rate. For 2013, Prudoe Compounds estimated the following: Overhead costs, other than spoilage Estimated spoilage cost Estimated sales value of spoiled materials Estimated direct labor hours $600,000 50,000 20,000 40,000 a. Prudoe Compounds applies overhead based on direct labor hours. Calculate the predetermined OH rate for 2013. b. For a batch of chemicals mixed in May 2013, the firm experienced normal spoilage on Job #788. The cost of the spoiled material amounted to $1,730 and the company estimated the salvage value of those materials to be $496. Journalize the entry for the spoilage.
- XYZ Company manufactures picture frames of all sizes and shapes and uses job order costing system. There is always some spoilage in each production run. The following costs relate to the current production run. • Estimated overhead (exclusive of allowance for spoilage) • Spoilage allowance (estimated) P250,000 P 37,500 120,000 • Direct Labor hours A single unit of frame requires direct material and direct labor in the amount of P5.00 and P6.00 respectively, and 1.5 direct labor hours. 31. Assuming spoilage is attributable to all jobs, what is the unit cost of each frame? a. 14.60 b. 13.40 c. 14.75 d. 13.50 32. Assuming spoilage is attributable to the specific job, what is the unit cost of each frame? a. 14.14 b. 14.60 c. 13.12 d. 14.12Southwest Toys manufactures globes at its San Fernando facility. The company uses job costing and provides you with the following information regarding operations for April 2020: (Click the icon to view the operations information.) Assume the spoiled units have no disposal value. Read the requirements. Requirement 1. What is the unit cost of making the 35,000 globes? The unit cost of making 35,000 globes is Data table Total globes manufactured Globes rejected as spoiled units Total manufacturing cost $ - 35,000 850 700,000 X Requirements 1. 2. 3. If the spoilage is considered normal, what is the increase in the unit cost of good globes manufactured as a result of the spoilage? What is the unit cost of making the 35,000 globes? What is the total cost of the 850 spoiled units? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Print Done - XAnderson Plastics makes plastic rear lamps for cars. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal price. Assume normal spoilage is 10% of the good output produced. The following information about actual conversion costs for April is available: Actual units Equivalent units Total costs Work in progress, April 1 15,000 14,000 €145,600 Work done during April 29,000 28,000 308,000 To account for 44,000 42,000 €453,600 Good units completed and transferred 20,000 20,000 ? out during April Normal and abnormal spoilage 4,000 4,000 ? Work in progress, April 30 20,000 18,000 ? 7.Assume that Anderson uses the weighted-average method. What is the cost of normal spoilage for conversion costs for the month of April? a) €21,600 b) €22,000 c) €43,200 d) €44,000 8.Assume that Anderson uses the FIFO method. What is the cost of abnormal spoilage for conversion costs for the month of April? a) €21,600 b) €22,000 c) €43,200 d)…
- Anderson Plastics makes plastic rear lamps for cars. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal price. Assume normal spoilage is 10% of the good output produced. The following information about actual conversion costs for April is available: Actual Equivalent Total units units costs Work in progress, April 1 15,000 14,000 € 145,600 Work done during April 29,000 28,000 308,000 To account for 44,000 42,000 € 453,600 Good units completed and transferred out during April 20,000 20,000 ? Normal and abnormal spoilage 4,000 4,000 ? Work in progress, April 30 20,000 18,000 ? 7. Assume that Anderson uses the weighted-average method. What is the cost of normal spoilage for conversion costs for the month of April? a) €21,600 b) €22,000 c) €43,200 d) €44,000Luke Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer.How much is the billing price? PPP, QQQ and RRR are partners sharing profits and losses of 5:3:2, respectively. As of December 31, 2020, their capital balances were P99,750; P84,000 and P63,000 respectively. On January 1, 2021, the partners admitted SSS as a new partner and according to their agreement, SSS will contribute P84,000 in cash to the partnership and also pay P10,500 for 15% of QQQ’s share. SSS will be given a 20% share in profits, while the original partners’ share will be…Southwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 1. What is the unit cost of making the 35000 globes? 2. What is the total cost of the 850 spoiled units? 3. If the spoilage is co sided normal, what is the increase in the unit cost of good gloves manufactured as a result of the spoilage? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred.
- Southwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 1. What is the unit cost of making the 35000 globes? 2. What is the total cost of the 850 spoiled units? 3. If the spoilage is co sided normal, what is the increase in the unit cost of good gloves manufactured as a result of the spoilage? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Data Table Total globes manufactured 35,000 Globes rejected as spoiled units 850 Total manufacturing cost $700,000Guess Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor 180Factory overhead, including P10 allowance for spoilage180 Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed thecustomer at 20% gross profit.1. If the spoilage is common to all jobs, the amount billed to the customer is_____________2. If spoilage is due to customer’s intervention, how much is the gross profit on theorder? _______________Google Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer. How much is the billing price?