Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials P360,000 Labor 7,700 14,000 111,390 222,780 Overhead
Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost. Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they are completed. Units are inspected at the end of the production process (discrete) in the Forming Department and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept. are: UNITS: Units in beginning inventory, 100% M, 35%CC Units started in process Units transferred to next department Units in process end, 100% M, 65% 10,000 90,000 80,000 15,000 COSTS: Costs- prior period Costs this period P12,600 Materials P360,000 Labor 7,700 14,000 111,390 222,780 Overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
The total cost of spoilage chargeable to Revenue is (recognized as expenses):
Transcribed Image Text:The total cost of spoilage chargeable to Revenue is (recognized as expenses):
Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for cost.
Units of product are started in the Forming Dept. and then transferred to the Finishing Department where they
are completed. Units are inspected at the end of the production process (discrete) in the Forming Department
and an average of 5% of units started is considered normal loss. Data related to April in the Forming Dept.
are:
UNITS:
Units in beginning inventory, 100% M, 35%CC
Units started in process
Units transferred to next department
Units in process end, 100% M, 65%
10,000
90,000
80,000
15,000
COSTS:
Costs- prior period Costs this period
P12,600
Materials
Labor
P360,000
111,390
222,780
7,700
Overhead
14,000
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