Job 1840, which cost $100,000 for 1,000 units before accounting for spoilage and rework, resulted in 30 units that were spoiled as a result of the normal production process and 10 that were spoiled because of a lightning strike, which also damaged 12 units that could be repaired at a cost of $45 each. Account for the costs of spoilage and rework.

Job 1840, which cost $100,000 for 1,000 units before accounting for spoilage and rework, resulted in 30 units that were spoiled as a result of the normal production process and 10 that were spoiled because of a lightning strike, which also damaged 12 units that could be repaired at a cost of $45 each. Account for the costs of spoilage and rework.

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

Ferdon inc. company started job #4 with 32 units. 7 units were rejected upon inspection. normal spoilage is 5 units. costs prior to inspection amount to $1,450 per unit and the spoiled units have a salvage value of $520 per unit. what is the cost per unit of the good units in job #4
13.During May 1997, AA Company completed 50,000 units costing $600,000, exclusive of spoilage allocation. Of these completed units, 25,000 were sold during the month. An additional 10,000 units, costing $80,000, were 50% complete at May 31. All units are inspected between the completion of manufacturing and transfer to finished goods inventory. Normal spoilage for the month was $20,000, and abnormal spoilage of $50,000 was also incurred during the month. The portion of total spoilage that should be charged against revenue in May is
Martin Company received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units? (Round-off to the nearest peso) IN A GOOD ACCOUNTING FORM WILL BE GREAT ALSO!
Job A has 1,000 units with costs incurred as follows: Direct materials of 100,000; Direct labor of 200,000 (1 unit requires 2 DL hrs) and with OH rate is 20 per DL hr (includes allowance for spoilage of 5 per DL hr). Per inspection, waste was determined weighing 100 kgs with zero value and damaged units (not reparable) of 100 units with salvage value of 30,000. The damage units were due to customer’s specifications. The good units were delivered and sold to customer at 1,000 per good unit. If rent and utility expenses totaled 50,000, compute the gross profit (at normal cost).
Harold Manufacturing produces denim clothing. This year, it produced 5,280 denim jackets at a manufacturing cost of $41.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. 1. Jackets can be sold to a secondhand clothing shop for $7.00 each. 2. Jackets can be disassembled at a cost of $32,800 and sold to a recycler for $11.00 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,280 jackets into only 3,050 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,400, but the jackets can then be sold for their regular price of $41.00 each. Required: 1. Calculate the incremental income. Incremental revenue Incremental costs Incremental income Alternative 1 Sell to a second- hand shop Alternative 2 Disassemble and sell to a recycler…
(Defective units and rework) Plastico produces plastic pipe to customer specifications. Losses of less than 5 per cent are considered normal because they are inherent in the production process. The company applies overhead to products using machine hours. PlastiCo used the following information in setting its predetermined OH rate for 2010: Expected overhead other than rework $850,000 Expected rework costs 75,000 Total expected overhead $925,000 Expected machine hours for 2010 100,000 During 2010, the following production and cost data were accumulated: 2,000,000 feet of pipe 40,000 feet of pipe Total good production completed Total defects Ending inventory 75,000 feet of pipe Total cost of direct material for Job #B316 $687,100 Total cost of direct labor for Job #B316 $157,750 Total machine hours for Job #B316 3,080 Cost of reworking defects during 2010 $75,500 Total actual overhead cost for 2010 $862,000 a. Determine the overhead application rate for 2010. b. Determine the cost for…
Prawitt Company incurred an activity cost of $103,500 for inspecting 30,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 30,000 units of production, the inspection activity was limited to a random selection of 4,000 units out of the 30,000 units of production. Determine the inspection activity cost per unit on 30,000 units of total production both before and after the improvement. If required, round per unit amounts to the nearest cent.Inspection activity before improvement fill in the blank 1 of 2$ per unitInspection activity after improvement fill in the blank 2 of 2$ per unit
Pharoah Corp. received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units?
Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: The question is If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo)